The National Electric Power Regulatory Authority (Nepra) is preparing a major revision to Pakistan’s solar net metering policy, proposing to reduce the buyback rate for solar power from Rs. 23 per unit to Rs. 10, according to sources in the Power Division.
In the next phase, authorities may completely eliminate the buyback rate mechanism, meaning consumers generating solar electricity would no longer be paid for the surplus power they supply to the grid. “Solar consumers will be required to use 100% of their self-generated electricity,” the sources added.
Currently, solar power producers are collectively being paid around Rs. 125 billion. Officials argue that the existing policy is contributing to rising electricity prices for traditional consumers connected to the grid. The rapid expansion of rooftop solar installations has intensified financial pressure on the government, particularly as payments to Independent Power Producers (IPPs) become increasingly difficult.
Data from the Power Division shows that grid electricity sales fell by 3.2 billion units in FY2024 alone, resulting in an estimated Rs. 101 billion loss in revenue for power distribution companies. This shortfall led to an average tariff hike of nearly Rs. 1 per unit for non-solar users.
Projections suggest that the financial impact will continue to widen in the coming years. In response, Prime Minister Shehbaz Sharif intervened on October 22, directing Nepra and the Power Division to review the buyback tariff and assess its overall implications before introducing any final policy reforms.
