(Web Desk) - The National Electric Power Regulatory Authority (NEPRA) has come up with draft regulation proposals addressing substantial alterations in Pakistan’s solar net metering policy.
The proposed ‘Prosumer Regulations, 2025 will replace the previous net metering regulations brought forth in 2015.’ According to NEPRA, ‘The proposed changes will ensure the stability of the national electrical power system, while still taking into consideration consumers who would like to use solar energy to lower their costs of electricity.’
According to the proposed guidelines, the consumer is limited to the installation of solar panels not exceeding their sanctioned electricity load.
The net metering consumers who are already operational will continue under the present regulations until the expiration of the agreed period of seven years, after which the new regulations would be applicable to them. In the case of new connections, it has been proposed to reduce the period to five years with the possibility of extension through mutual consent of the consumers as well as the distribution companies.
One of the salient changes that have been mooted is the cut in compensation rates with respect to surplus units of electricity that are fed into the grid. According to the proposed regulations, surplus units of electricity are supposed to be bought at the National Average Energy Purchase Price of about Rs13 per unit, compared with the existing rate of around Rs26.
NEPRA pointed out that higher electricity rates, taxes, and surcharges have spurred the rise in solar power generation, as more than 6,000 megawatts of grid-connected solar power have been installed.
The DRAFT also sets local capacity constraints, forbidding further net metering applications when solar power fed into a transformer exceeds 80% of its capacity. In addition, solar power systems with capacities of 250 kw and above are now required to undergo technical feasibility studies.
According to NEPRA, the proposed policies are meant to ensure the sustainability and reliability of the energy grid while continuing to support the adoption of renewable energy resources.