Solar Net Metering Now Meets 15% of LESCO’s Power Demand

The Lahore Electric Supply Company (Lesco) has seen a significant increase in solar net metering, accounting for 15% of its power demand. By March 2024, rooftop solar net-metering installations in Lesco’s service areas reached 500.2MW, representing about 15% of the current peak summer demand of approximately 3500MW, reported a national daily. This figure is higher than the national share of less than 2% in the overall peak power supply to the national grid. If standalone solar plants in residential, commercial, and industrial sectors are included, estimates suggest that solar power generation may surpass 20% of the total demand within Lesco’s coverage area. Several factors are driving the momentum in solar PV technology adoption, with 30,280 consumers in Lesco areas opting for solar net-metering. By March 2024, a total of 33,843 applications had been submitted for the installation of 542.3MW solar panels, and a substantial number had already been connected to the grid. Despite this capacity addition, Pakistan continues to face an energy crisis characterized by a persistent gap between demand and supply. The current energy demand exceeds the generation capacity, resulting in a shortfall of 5,000MW and leading to widespread load-shedding and power outages. Additionally, rising power tariffs have made electricity unaffordable for many consumers, with alleged corruption in distribution companies leading to rampant overbilling. These challenges have prompted consumers to seek relief through independent solar power generation setups. The federal government is actively encouraging investment in small-scale distributed solar energy generation. However, the rising demand for solar net metering has led to some challenges. Potential customers report difficulties in obtaining net-metering facilities, particularly the installation of green meters, which are in short supply. In many cases, consumers face months-long waits for meter installation.