ISLAMABAD: The federal government has temporarily halted the implementation of recently approved amendments to Pakistan’s solar net-metering regulations, directing the Power Division to conduct broader stakeholder consultations before presenting the revised policy to the Cabinet once again.
The decision was made during a federal cabinet meeting held on Wednesday, where the Prime Minister appreciated the Power Division’s efforts but emphasized the need for a more inclusive consultation process. The directive is aimed at ensuring that all relevant stakeholders across the energy sector are adequately heard before any policy shift is finalised.
“There were no objections raised,” Minister for Power Sardar Awais Leghari told Profit.
“The prime minister simply wants a wider consultation process to make the decision more representative and inclusive,” he added.
”The move comes in the wake of the Economic Coordination Committee’s (ECC) approval of significant amendments to the net-metering framework during its meetings on March 13 and March 21, 2025. The most notable change was the proposal to revise the buyback rate for surplus electricity exported to the grid by solar users—from Rs. 19.32 per unit to Rs. 10 per unit—aimed at alleviating the financial burden on grid-connected consumers.
This proposed rate adjustment sparked widespread concern among solar power users and clean energy advocates, especially as solar adoption has accelerated rapidly in Pakistan.
Official data reveals that the number of registered net-metering users increased from 226,440 in October 2024 to 283,000 by December 2024, while installed solar capacity soared from 321 MW in 2021 to 4,124 MW by the end of 2024.
According to government estimates, this explosive growth—largely driven by affluent urban households—has shifted system costs disproportionately onto regular grid consumers. Net-metering users, officials argue, are not contributing to fixed capacity charges, leading
to a financial impact of Rs. 159 billion in 2024 alone. If unaddressed, this figure is projected to escalate to Rs. 4,240 billion by 2034.
While the amendments were designed to address these imbalances, critics warned that drastic and sudden changes could undermine investor confidence and stall Pakistan’s transition to clean energy.
Minister Leghari confirmed that ongoing consultations would span “across the sector,” including consumer groups, industry stakeholders, and renewable energy experts. However, no firm timeline has been given for when the revised policy will return to the Cabinet for approval.
Importantly, the Power Minister assured that existing net-metering users will remain unaffected. Contracts signed under NEPRA’s 2015 regulations will stay valid until expiry. Any new rules, once approved, will only apply to future agreements. “There will be no impact on current users,” Leghari reiterated. “New consumers will have to follow whatever terms emerge from this inclusive process.”
It is pertinent to mention that as the country grapples with rising energy demands and cost challenges, the outcome of this process could play a pivotal role in reshaping Pakistan’s solar energy trajectory—striking a balance between sustainability, affordability,
and equity for all electricity consumers.
