Govt considers cutting buyback rates from Rs 21 to Rs 11/unit for net metering

Solar systems should primarily serve personal consumption, and excess power rates should reflect the affordability of the distribution companies, argues Power Division

The government is considering reducing the buyback rates for net metered electricity from Rs 21 to Rs 11 per unit.

BR reported, quoting sources, that the surge in net metering installations has disrupted the government’s ability to manage capacity charges, as wealthier segments adopt net metering systems.

The Power Division believes that the benefits of net metering to consumers have peaked, and the sector is now facing issues. While the government supports solar energy, the current buyback rate of Rs 12-22 per unit is deemed unsustainable.

Officials argue that solar systems should primarily serve personal consumption, and excess power rates should reflect the affordability of the distribution companies (Discos).

As of March 31, 2024, imports of solar panels capable of producing 6000 MW have been recorded, with 3000 MW currently generated through solar energy.

In 2022, the National Electric Power Regulatory Authority (NEPRA) began revising the Alternative & Renewable Energy Distributed Generation and Net Metering Regulations, 2015.

The proposed change involved replacing the term ‘National Average Power Purchase Price (NAPPP)’ with ‘National Average Energy Purchase Price (NAEPP)’, following an increase in NAPPP from Rs.12.95/kWh to Rs.19.32/kWh effective July 25, 2022.

This amendment was open for public feedback for 30 days, and a hearing was held on September 27, 2022, following stakeholder input and media coverage. Consumers at the hearing opposed the amendments, citing the efficiency and low infrastructure costs of net metering.

Despite government pressure, NEPRA delayed its decision for months, ultimately choosing not to amend the existing regulations, acknowledging the economic benefits of net metering, such as cost savings, foreign exchange savings, and minimal losses, despite it comprising less than 1% of the total energy purchased by DISCOs.

Monitoring Desk
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48 COMMENTS

  1. if netmetering amount is reduced , everyone will install hybrid with lithium batteries . government needs to renegotiate bad agreements from past with IPPs

  2. It is ironic that they are ready to generate electricity from diesel, which costs more than Rs.70 per unit, but they are unwilling to purchase clean energy generated by solar on the price of Rs.21 per unit. WOW, What a curious managerial decision!

  3. if netmetering amount is reduced , everyone will install hybrid with lithium batteries . government needs to renegotiate bad agreements from past with IPPs

  4. it was tried before but strongly opposed with reasons by Renewable Energy Association Pakistan and by other relevant stakeholders. It will be challenged again.

  5. Assalamu Aallikum! Everyone knows why they prefer electricity from diesel and not from net metering because main buyer of diesel from Iran are powerful hands so they actually sell their diesel and are not thinking about Pakistan and their peoples conditions .

  6. I am surprised these power division people who come up with such ridiculous arguments don’t get fired. They did not get fired when they signed expensive co tracts with IPPs, did not initiate to build dams and are now out to eliminate the solar industry. While the country haplessly looks on.

  7. Look at these government officials. They would sell you electricity at high rates and seek to buy the same at rates much lower. Provision of uninterrupted power supply is any government’s responsibility in which our successive governments have constantly failed. People are using solar at a price and should not be expected to sell it to the government at throw-away rates. Moreover, like the government the solar users too should have the choice to raise these rates periodically, as the government does. In any case I cannot tolerate the sight of WAPDA and DISCOS employees using millions of units worth billions of rupees free of cost while the rest of the nation suffers electricity outages half of the time.

  8. Their wrong agreements with IPP are making people suffer. it is ridiculous to purchase from IPP at much higher rates but do not purchase clean energy at much lower rates. please do not punish people because of your stupid mistakes. Govt must subsidise or give rebates in taxes to those who are installing or installed solar pannels.

  9. This decision, if implemented, will prove to be a blunder for the country. Whole world is going towards renewable energy while our government wants to discourage this concept.

  10. Our governance system is always good at going against the interests of people of Pakistan. Thermal Generation by IPPs at more than Rs 100 per unit is ok with govt but not the green energy unit produced by households at Rs 22 per unit. Instead govt should encourage such energy at slightly higher rates keeping in view rising costs of every thing. NEPRA must look into as a public issue and not as IPPs issue only.

  11. government itself proudly says we did agreements in dollars with solar and wind companies and is not willing to pay even enough rupees to local net metering people.

  12. how funny is the fact that they want to reduce net metering rates to pay capacity charges which at first place shouldn’t have existed at all !! … finally the nation is helping themselves with their electricity shortfall but government is there to once again ensure that people don’t get any relief

  13. complete Choo… paa PDM eaten Pakistan like turmite this is last chance to lead Pakistan Govt bcoz Adyala guest is ready to punished these bastard soon..
    where is the black money in swiss bank 200 billion dollars…
    somebody has to take the responsibility who’s the powerfull man in Pakistan…

  14. جناب عوامی بجلی کمیشن مافیا اورکرپٹ معاہدوں کی راہ میں حلوے میں کانٹے کے مترادف ہے ۔ipp
    اگر ناراض ہوتے ہیں تو سارا پول کھلنے کا امکان ہے ۔۔بی بی نظیر کی دی ہوئی سوغات گلے میں پھندا ہے ۔60 روپے یونٹ سستی ہے اور عوامی بجلی 21 روپے مہنگی ہے ۔۔اس میں حکومتی کرداروں کا کوئی فائیدہ نہیں ۔یہ سولر تو پیٹ میں مروڑ پیدا کر رہا ہے

  15. mseb buy back is only Rs3 per unit from residential roof top and they purchase at March end where it should June as the peak demand comes from April and May.

  16. What fears them the most is that line.

    As of March 31, 2024, imports of solar panels capable of producing 6000 MW have been recorded, with 3000 MW currently generated through solar energy.

    so it means ppl will shift to Hybrid or OffGrid eventually. This decision is not new its pending just because of the powerful residents of DHA ..Bahria etc

  17. Government should give relief to motivate public towards net metering and should buy one unit @ RS 100.

    It will add value to progressiveness.

  18. We strongly appose this shameful idea aimed towards generating funds for their own survival & luxuries at the cost of poor public

  19. Power Division proposing this is acting as a lobbying agent for IPP demands. it is better to go offgrid rather than relying on expensive and inconsistent grid power and adjust usage accordingly.

    This current puppet government is foisted on us without public mandate and does not represent common people’s interest. They only represent lobbied interests from big players in IPP/power sector.

  20. if netmetering amount is reduced , everyone will install hybrid with lithium batteries . government needs to renegotiate bad agreements from past with IPP’s very bad and pathetic decision if they can do . better we can go Gaza for Jihad . Alteaat we get Jannah and food and every thing

  21. This is what is called Sadda Kutta ” Kutta” and Tuwada Kutta ” Tommy”. Say No to Net Metering, Hence utilize solar production yourself Rest Waist.

  22. Government will honor IPP Contracts and even if not a single unit is used they have to pay capacity charges to IPPS. In past years there have been efforts to revise the contracts but in vain. This story will go on and Pakistanis will keep on paying additional charges. The reason is high ups are getting handsome commisions and secondly t owners of IPPS are very powerful people. look at list of Directors of Hubco.
    The contracts will cease to be effective in 2026 but we can never expect any relief for our poor pakistanis.

  23. keeping in view the exorbitant surge in electricity rates people have started to install solar system at their residences, government should encourage this trend and facilitate the masses. It would be a sheer dishonesty if government take such decision eventually people would divert to hybrid solar system.

  24. its so sad to hear it…Bahria town already cutting 30% units in guise of fisfute witt IESCO???

    its criminal to ruduce buy back price…Allah kay wastay kuch faida hamain bhee doo….

  25. No need to give electricity to government on cheap rates instead use batteries or help ur neighbour. Say no to Government

  26. That’s policies of government of Pakistan ,That’s our so called economist ,it’s better when you make policies at lest consider 25 years but in here position different every day change rules policies and people are unhappy ,They just know how to cheat people and make money through different channels that’s it.

  27. funny that current buyback rate is rs21 and in latest wapda report they highlighted cost of solar as rs41 making it almost as costly as furnace oil. obvious reason behind this move must be our beaurecrats and politicians can’t make a quick commission on this and it will eat into their kickbacks from the IPPs…

  28. As a matter of fact govt should promote clean energy through solar and plan ahead to get rid of expensive IPPs. In the meantime develop dams to generate cheaper electricity beneficial for the industry

  29. All power sector is corrupt and are saving the IPP,s for the heavy amount being paid thru consumer to them

  30. sir ye log Jo is mulk ko Chala Rahe hain Yani establishment, police , departments, politicians, government, agencies and adlia they are all worse then prostitute because even prostitute have a principles but these people have no principle. therefore it’s necessary to get rid of these enemies of Pakistan by fighting against them. public problem will not be solved unless and until publics come out of their house and fight a war against these corrupt ashrafia. A french revolution is required or Talibans are required to take control of country

  31. sir ye log Jo is mulk ko Chala Rahe hain Yani establishment, police , departments, politicians, government, agencies and adlia they are all worse then prostitute because even prostitute have a principles but these people have no principle. therefore it’s necessary to get rid of these enemies of Pakistan by fighting against them. public problem will not be solved unless and until publics come out of their house and fight a war against these corrupt ashrafia. A french revolution is required or Talibans are required to take control of country. people must not pay tax to this illegitimate government.

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  33. Dear friends ..I see the fate of solar energy the same as of CNG few years back .. Government encouraged ..gave subsidiaries and people invested billions. the end every one knows .. I won’t hesitate in saying that they won’t stop at only reducing the price but will further it by imposing other taxes / cut downs ..like being done by Behria Rwp .. 30% of export units are not counted for .. let’s hope for the best

  34. on one side the electric companies ready to buy electric from private com on higher price but willing to encourage the consumers to pay more and allow them.to be part of grid and save high cost supplier and foreign exchange .surprise to see the reduction in consumer produced solar power energy

  35. گندم کے کاشتکاروں کو عذاب میں مبتلا کرنے والے کرپٹ مافیا کو اب سولر پاور کی بڑھتی ہوئی پیداوار کھٹک رہی ہے۔ سفید پوش طبقہ نا مساعد مالی حالات کے باوجود خون پسینے کی کمائی سولر پر خرچ کرتا ہے تا کہ بجلی کے فروخت کاروں کی لوٹ کھسوٹ سے بچ سکے۔ مگر عوام کا خون نچوڑنے والے ڈکیتی کے نئے نئے طریقے ایجاد کرتے پھرتے ہیں۔ ان کی موجودہ کوشش بھی عوام کے منہ سے نوالہ چھیننے کی ایک واردات ہے۔ جس سے انہیں باز رہنا چاہئے۔

  36. the only problem with the net metering is that the consumer is giving low cost enegery to the grid while the beaucrates want their share in this system . these dirty beauractes want haram ka maal in every deal. they don’t want this country to prosper instead their own kin.

  37. Ultimately this crupt Mafia will try to get declared the solar panels installation illegal for domestic / household use.
    As in the past Govt stopped industries to produce electricity for their own use & force them to buy it from Wapda.

  38. let the market rate prevail whether it upends diacos. Govt should not fix prices …. to buy from ipps instead of rooftop solar owners else public will go off grid leaving behind free electricity cobsumers.

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