Web desk: In light of the rising electricity prices across the country, a proposal has been presented to reduce the per-unit rate of solar electricity.
However, under the proposed new system, consumers will no longer be compensated for the electricity they generate through solar power and feed into the national grid.
Major Cut in Solar Power Rates
According to details, the National Electric Power Regulatory Authority (NEPRA) has begun working on potential changes to the current solar energy tariff structure.
Sources revealed that, in the first phase, a proposal is under consideration to reduce the solar power rate from Rs 23 per unit to Rs 10 per unit.
In the next phase, authorities are reportedly considering eliminating the existing “payback rate” mechanism for solar consumers.
This means that households and businesses using solar systems will not receive payments from the government or the power distribution system for the electricity they produce.
Instead, consumers will be required to utilise 100 per cent of the solar energy they generate for their own consumption.
Official data indicates that approximately Rs 125 billion is currently being paid annually to consumers under the solar net metering system.
This growing financial burden has made timely payments to Independent Power Producers (IPPs) increasingly difficult for the government.
Sources said that the rapid expansion of solar energy usage is emerging as a strong alternative to the IPP-based power generation model.
NEPRA
It may be recalled that during a high-level meeting chaired by the Prime Minister on October 22, the Power Division and NEPRA were directed to carry out a detailed review of the potential financial, technical, and legal implications of revising solar energy tariffs.
The purpose of this review is to ensure that any proposed reforms are implemented without violating existing agreements or legal commitments.
According to official sources, the government has also started examining the legal status of current net metering contracts to determine whether a reduction in buyback rates is legally permissible.
Simultaneously, work is underway to develop new standardised contracts for future solar customers under a proposed “Net Billing Framework.”
This new framework is being viewed as a key step toward creating a more regulated, transparent, and financially sustainable solar energy system in Pakistan.
