The Economic Coordination Committee (ECC) of Pakistan has approved amendments to the net-metering regulations, reducing the buyback tariff for solar rooftop consumers from Rs. 27 to Rs. 10 per unit.

This decision aims to balance the financial dynamics between solar energy producers and grid consumers.

Key Changes:

  • Buyback Rate Adjustment: The government will now purchase excess electricity from net-metering consumers at Rs. 10 per unit, down from the previous Rs. 27 per unit.
  • Taxation: Units exported to the grid by solar net-metering users will not be taxed. However, these consumers will continue to pay an 18% sales tax on electricity consumed from the grid, consistent with other consumers.

Impact on Existing Consumers:

Existing net-metered consumers with valid agreements under NEPRA’s 2015 regulations will not be affected by these amendments; their contractual rates will remain intact until their agreements expire.

Rationale Behind the Revision:

The surge in solar net-metering adoption has led to a significant financial impact on grid consumers. As of December 2024, registered users increased to 283,000, up from 226,440 two months earlier, with installed capacity jumping from 321 MW in 2021 to 4,124 MW in 2024. This growth resulted in a Rs. 159 billion financial burden on grid consumers, projected to reach Rs. 4,240 billion by 2034 without regulatory intervention.

Government’s Position:

Federal Minister for Energy Sardar Awais Ahmad Leghari stated that the revised policy aims to encourage solar net-metering adoption while ensuring a balanced tariff structure.