Govt Planning to Massively Reduce Net Metering Rate

The federal government is planning to reduce the solar net metering rate to Rs. 7.5-11 per unit from the current rate of over Rs. 21 per unit. This follows the recent drop in solar panel prices and the International Monetary Fund’s (IMF) remarks over the increased use of solar energy which is reducing reliance on grid electricity. If approved, rooftop solar consumers would receive lower compensation for surplus electricity while paying Rs. 60 per unit for grid electricity during peak hours. Six units produced from solar panels may equal just one unit of grid electricity and deter further adoption of solar panels and mitigate capacity payment challenges faced by power producers, reported a national daily. Inspired by a recent solar bid by K-Electric at 3.1 cents per unit, the government is set to propose new tariffs to the National Electric Power Regulatory Authority (NEPRA). The IMF has expressed concerns about the national grid serving as an unpaid storage facility for solar users and has urged measures to boost grid electricity demand. Previously, gross metering was proposed as an alternative to compensate solar users at a fixed rate for energy exported to the grid while requiring them to pay retail tariffs for grid consumption.