The federal government has officially announced the revised rates for solar net metering, bringing significant changes for rooftop solar panel users.

Under the new policy, the government will purchase electricity from net metering consumers at Rs 10 per unit instead of the previous Rs 27 per unit, Federal Minister for Power Sardar Awais Ahmed Khan Leghari confirmed.

The minister also reiterated that there will be no tax on the electricity units exported to the grid by solar net metering users. However, they will continue to pay an 18% sales tax on the electricity they consume from the grid, similar to other consumers.

The changes in the net metering policy, approved by the Economic Coordination Committee (ECC), aim to create a balanced tariff structure while encouraging solar energy adoption.

Govt saves Rs1,400bln

During an interview on a private TV channel, Awais Leghari revealed that the government had successfully renegotiated Independent Power Producer (IPP) contracts, resulting in a Rs 1,400 billion saving over the remaining years of these agreements.

This translates to an annual saving of Rs 400 billion, which, he said, would reflect in reduced electricity tariffs for consumers.

The minister further stated that the discount rate on loans for the power sector had been reduced to 12%, which would also contribute to lowering electricity costs.

Addressing concerns about the impact of the 18% tax on net metering consumers, the federal minister clarified that the electricity buyback rate for new solar consumers will remain between Rs 9.5 to Rs 10 per unit, dismissing claims of a reduction to Rs 8.88 per unit.

Under the new solar policy, the payback period for rooftop solar installations is estimated to be around 3.5 to 4 years, based on a 15% plant factor and an energy consumption ratio of 25% solar power and 75% grid power.

Net metering profit adjusted

Leghari emphasised that the previous Rs 27 per unit buyback rate was a windfall profit for solar net metering users, which has now been adjusted to a more reasonable profit of Rs 10 per unit.

“If we had not revised the net metering prices, the burden on non-solar consumers would have increased significantly,” he stated.

The minister assured that the existing 283,000 net metering consumers would not be affected by the revised rates, and their current contracts would be honored to maintain the government's credibility.

Solar panel prices in Pakistan dropped 

Following the government's amendments to the net metering policy, the prices of solar panels have dropped across the market, with a Rs 2 per watt reduction.

As a result, the cost of installing solar systems has decreased by Rs 35,000 to Rs 175,000, making renewable energy more accessible to consumers.

New Solar System Prices (On-Grid):

• 5kW system – Rs 550,000
• 7kW system – Rs 625,000
• 10kW system – Rs 850,000
• 12kW system – Rs 978,000
• 15kW system – Rs 1,150,000

Hybrid systems, which include battery storage, will incur additional costs.

The federal minister clarified that off-grid solar systems remain unaffected by the net metering policy. Consumers who install solar panels with batteries for their homes, businesses, or tube wells can continue doing so without any government restrictions.