ISLAMABAD (Dunya News) – The government is reportedly planning to cut the buyback rate for solar net metering from the current Rs22 per unit to about Rs11.30, following concerns that the scheme is placing a significant financial strain on grid electricity users, The News reported on Friday.
Official data indicates that the expansion of rooftop solar systems has reduced grid electricity sales by 3.2 billion units in FY2024, causing distribution companies a revenue loss of nearly Rs101 billion. This shortfall has, in turn, led to an average tariff increase of Rs0.9 per unit for other consumers.
Projections by the Power Division suggest that by FY2034, this loss could rise to 18.8 billion units, translating into a Rs545 billion impact and potentially raising electricity tariffs by Rs5–6 per unit for grid-dependent users. The situation has become serious enough to attract the prime minister’s direct involvement.
During a meeting on October 22, the prime minister instructed the Power Division and Nepra to review and verify the buyback tariff and its financial consequences before introducing reforms to the net metering framework. An energy official explained that solar users are effectively using the national grid as a battery, selling surplus electricity at high rates — around Rs22 per unit — while avoiding fixed charges, thus shifting the system’s costs onto other consumers.
With new solar power projects being contracted at below Rs10 per unit, officials have described the current rate as economically unbalanced. To address this, the Power Division has proposed reducing the buyback price to Rs11.30 per unit, aligning it with market realities and preventing further tariff hikes for grid users.
The rapid spread of solar net metering, now estimated at 6,000MW nationwide, is also causing operational challenges, especially during winter months when demand falls to 8,000–9,000MW, raising the risk of excess generation during daylight hours.