ISLAMABAD (PEN) : The Pakistani government has introduced new rates for solar net metering, marking a significant shift in the country’s renewable energy policy. The updated rates, which will impact rooftop solar panel users, aim to create a more balanced tariff structure while continuing to promote solar energy adoption.
New Solar Net Metering Rates
According to Federal Minister for Power, Sardar Awais Ahmed Khan Leghari, the government will now purchase electricity from net metering users at Rs 10 per unit, a sharp reduction from the previous rate of Rs 27 per unit. This change is part of an effort to restructure the energy sector and provide relief to non-solar consumers.
Leghari confirmed that there would be no taxes imposed on the electricity units exported to the grid by solar users. However, like other consumers, solar net metering users will still pay an 18% sales tax on the electricity they consume from the grid.
Impact on Solar Consumers
The revised rates are intended to curb the financial burden on non-solar consumers, ensuring fairness in electricity distribution. The minister stated that the earlier Rs 27 per unit buyback rate was unsustainable and was leading to windfall profits for solar users. The reduction to Rs 10 per unit ensures a more reasonable profit margin, in line with the government’s aim to prevent a rise in the electricity burden for non-solar consumers.
Despite the changes, the minister assured that the existing 283,000 solar consumers would not be affected by the new rates, with their current contracts remaining intact.
Government’s Energy Savings and Lowered Loan Rates
In a broader context, Minister Leghari also highlighted the government’s successful renegotiation of Independent Power Producer (IPP) contracts, which resulted in savings of Rs 1,400 billion. This reduction, which is expected to save Rs 400 billion annually, will help lower overall electricity tariffs for consumers. Additionally, the government has reduced the discount rate on loans for the power sector to 12%, further contributing to reduced electricity costs.
Price Drop for Solar Panels
Following the introduction of the revised solar net metering policy, solar panel prices in Pakistan have experienced a drop. The cost of installing solar systems has decreased by Rs 35,000 to Rs 175,000, making solar energy more accessible to a broader range of consumers.
As of the latest updates, the prices for on-grid solar systems are as follows:
– 5 kW system – Rs 550,000
– 7 kW system – Rs 625,000
– 10 kW system – Rs 850,000
– 12 kW system – Rs 978,000
– 15 kW system – Rs 1,150,000
For consumers opting for hybrid systems that include battery storage, additional costs will apply.
Off-Grid Systems Unaffected
It’s important to note that off-grid solar systems, which include setups for homes, businesses, or tube wells, are unaffected by the changes to the net metering policy. Consumers installing solar panels with battery storage for off-grid use can proceed without any restrictions imposed by the government.
Conclusion
The revised solar net metering rates reflect the government’s efforts to make renewable energy more accessible while ensuring fairness in electricity pricing. With reduced prices for solar installations and a more balanced approach to net metering, Pakistan is taking steps toward a more sustainable and economically viable energy future. However, ongoing adjustments and reforms in the energy sector remain crucial for long-term success.
