Govt Likely to End Solar Net Metering and Impose Fixed Charges [Updated]

Update: The Power Division has denied the rumors that the net metering policy was ending in Pakistan. In a brief statement, it said there is no truth to such claims and no instructions have been issued by the Prime Minister on any changes to the Net Metering Policy. The Power Division lamented that news channels should’ve asked for comment before reporting such news. But how is it fake? The following document seen by ProPakistani reveals that special instructions on net metering tariff rationalization have been issued particularly in reference to amending Net Metering Regulations. Prime Minister Shehbaz Sharif has ordered to end solar net metering in Pakistan and to impose fixed charges on such consumers/households that install solar systems, high-level sources informed ProPakistani. This comes almost two weeks after Power Division denied reports that it was going to end solar net metering in the coming fiscal year. Sources said the federal government plans to devise dual rates for the purchase and sale of solar-powered electricity in the country. The proposed fixed charges on solar consumption will be collected on a monthly basis. Sources added that the authorities plan on amending the Net Metering Regulation and introduce a separate tariff category to squeeze out more money from solar users who want to avoid the drastically unaffordable grid electricity. Besides net metering, the federal government has approved setting up a 600 MW solar power plant in collaboration with investors from Saudi Arabia. Shehbaz has instructed the submission of a summary outlining both proposals on high priority. If approved, the new position on solar net metering is expected to take full effect in the upcoming fiscal year. Interestingly, Energy Minister Awais Leghari on May 20, 2024, denied reports of quashing solar net metering and said it remained a high priority of the coalition government. Prior reports mentioned the constitution of gross metering to replace the net metering framework. Now, the Prime Minister’s fresh instructions have confirmed previous reports. Notably, Pakistan is home to roughly 113,000 consumers with net-metering licenses, representing less than 0.5 percent of the total population.