Govt plans to revise solar net metering policy amid power sector losses

The federal government has announced plans to revise Pakistan’s solar net metering policy, aiming to reduce losses within the power sector. This announcement was made by Federal Minister for Energy, Sardar Awais Ahmad Leghari, during a press conference where he highlighted current issues surrounding solar net metering.

Minister Leghari noted that citizens installing solar systems initially expected to recover their investments within three years. However, due to recent advancements, this period has been significantly reduced to just one to one and a half years. This rapid return on investment underscores the growing efficiency and popularity of solar energy solutions.

The PML-N-led government had initially promoted solarisation in 2017, resulting in 113,000 connections currently operating under the net metering scheme. Leghari reassured that while the government is open to revising the solar net metering policy if necessary, it remains committed to sustaining the programme.

“We will take effective measures to eliminate power theft and thereby reduce the financial burden on the national exchequer,” he stated, emphasising the government’s dual focus on promoting clean energy and maintaining economic stability.

The government is also assessing the impacts of the increasing trend towards rooftop-generated electricity. Minister Leghari explained that this assessment would help determine the rate of return on investments in solar equipment and understand the broader implications of this shift.

He highlighted the need to analyse whether the growing reliance on solar panels is leading to inflated electricity prices for local households. “We will be involved in analysing and balancing the solar net metering,” Leghari added, indicating a comprehensive approach to ensuring the policy benefits all stakeholders.

Net metering, a billing mechanism that credits solar energy system owners for the electricity they add to the grid, remains a pivotal aspect of the government’s strategy to encourage renewable energy adoption. This revision aims to optimise its benefits and address emerging challenges within the power sector.