Islamabad: The government is set to introduce a significant revision to the rooftop solar buyback policy, moving away from the existing net-metering system to a gross-metering mechanism. This shift is in response to growing concerns that the current system has disproportionately benefited higher-income households, while placing an undue financial burden on grid consumers.
Under the proposed policy, the national grid will purchase solar-generated electricity from rooftop users at a much lower rate of Rs8-9 per unit, a sharp decrease from the current rate of Rs21 per unit. This change is expected to increase the payback period for solar investments, extending it from the current 18-24 months to approximately 4-5 years.
The existing net-metering system allows solar users to sell their surplus electricity to the grid at Rs21 per unit, while purchasing electricity back at Rs42 per unit when their systems are not generating power, such as during nighttime. This arrangement has allowed wealthier households with rooftop solar installations to recover their investment quickly, while the additional costs have been passed on to consumers who rely solely on grid electricity.
According to documents from the Power Division, this system has led to a Rs1.03 per unit increase in electricity tariffs for non-solar users, amounting to a financial burden of Rs103 billion. The new gross-metering proposal aims to reduce these inequities by ensuring that solar users can no longer eliminate their electricity bills entirely, as all solar power generated will now be sold to the grid at the revised, lower rates.
Data from the Power Division shows a significant rise in rooftop solar adoption, with installed solar capacity growing from 321 MW in 2021 to 3,277 MW in 2024. The number of net-metering consumers has reached 226,440, though they make up just 0.6% of the 37 million electricity users nationwide. Without policy changes, the increasing adoption of solar could lead to a projected burden of Rs503 billion on the system over the next decade.
The move to gross-metering follows concerns over the unequal distribution of benefits, with cities like Lahore, Karachi, Islamabad, and Faisalabad accounting for 80% of the country’s net-metering users, predominantly in wealthier areas. Critics argue that while solar adoption should remain accessible, the current policy has allowed affluent consumers to significantly reduce their electricity costs while passing the financial burden onto the less privileged.
The government is expected to finalize the new solar policy in February, aiming to create a more sustainable and balanced framework for rooftop solar energy integration. Energy experts have called for the National Electric Power Regulatory Authority (NEPRA) to ensure that the new tariffs reflect market trends and prevent any exploitation of the system, while still supporting broader adoption of solar energy.
Officials stress that the reforms are designed to protect underprivileged consumers from the financial burden of the current policy, while also promoting a fairer and more equitable solar energy system for all.
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