Government Says Rising Solar Net-Metering Poses No Threat to National Grid

Solar power adoption is growing faster than ever in Pakistan, especially through net-metering, where households and businesses generate electricity from solar panels and sell excess units back to the grid. For years, critics have claimed that this rapid shift toward rooftop solar could destabilize the national grid and reduce revenue for power companies.

However, in a major clarification, the government has openly admitted that solar net-metering is currently not harming the national grid, easing public concern and bringing clarity to the ongoing national debate about renewable energy.

During a public hearing at the National Electric Power Regulatory Authority (NEPRA), the Central Power Purchasing Agency (CPPA) confirmed that despite the rise in solar installations, grid withdrawals have not significantly decreased, and the power system is operating normally.

This marks an important moment for Pakistan’s energy sector — especially at a time when electricity prices are rising and more people are turning toward solar solutions to manage household bills.

Solar Net-Metering: What the Government Has Confirmed

During the NEPRA hearing for the upcoming 2026 power purchase price, CPPA CEO Rehan Akhtar addressed questions related to the fast-growing solarization trend.

He stated:

“Solar generation is increasing, but this does not have a significant impact on the grid.”

He further explained that consumers who install solar systems:

• are still drawing nearly the same amount of electricity from the grid
• use solar mainly during daytime
• still rely on the national grid at night and during cloudy months
• offset costs but do not significantly impact national demand patterns

This means the biggest fear — that solar users will stop using the national grid entirely — is not happening yet.

Why This Statement Matters

For several months, debates were growing around whether the rapid rise in solar net-metering:

• was reducing power company revenues
• was destabilizing the grid
• was shifting financial burdens onto non-solar users
• required a policy shift from the government

Many proposed a reduction in net-metering buyback rates or a complete policy change.

The CPPA’s latest clarification, however, proves that:

✔ Solar energy is not causing operational harm
✔ Grid stability remains intact
✔ Net-metering injections are manageable
✔ Demand on the grid is still normal and consistent

This is a strong relief for both solar consumers and future adopters.

Massive Increase in Net-Metering Solar Units Injected Into the Grid

NEPRA data shows that electricity injected into the system through net-metering increased dramatically:

• 266 million units in 2023
• 726 million units in 2024
• A 173% increase in just one year

This proves that Pakistanis are rapidly embracing renewable energy — mainly due to high bills, high fuel costs, and frequent tariff hikes.

But despite such explosive growth, CPPA insists that:

• the grid remains stable,
• electricity demand has not crashed,
• utility companies are still selling large portions of power,
• and consumers remain dependent on the national system.

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Why Grid Offtake Remains Stable Even With Solar

CPPA explained that while households generate solar power during the day, several factors keep grid demand steady:

1. Solar cannot run heavy loads at night

Solar systems drop to zero production after sunset. Consumers rely on the grid for:

• ACs
• refrigerators
• lights, appliances
• water pumps
• home heating/cooling systems

2. Winter months sharply reduce solar performance

Solar output in December–January can drop by 50–70%, increasing grid dependence.

3. Industrial and commercial users still rely heavily on the grid

Even if industries add solar panels, they cannot fully disconnect — especially during peak hours.

4. Growing population means growing electricity demand

Pakistan’s grid consumption is rising slowly but consistently.

K-Electric’s Example: Grid Demand Still Increasing

Unexpectedly, the data shows:

• State-owned DISCOs saw very low demand growth (about 1%)
• Karachi Electric (KE) increased its grid offtake by 9.4%

This happened because KE resumed using its full 2,050 MW draw from the national grid after a long gap.

The comparison proves that despite solar installations, the grid is still in high demand.

Why Some Officials Previously Claimed Solar Was Hurting Revenues

Critics of solar net-metering argue:

• Solar users pay lower bills
• DISCOs earn less revenue
• Costs may shift to non-solar users

However, CPPA’s new statement suggests these fears may be exaggerated — for now.

But officials warn that in the future, if solar adoption reaches 20–30%, tariff structures and grid planning may need adjustments.

How Net-Metering Works in Pakistan

To understand the impact, it is important to know how the system operates.

✔ Solar users generate electricity

During the day, rooftop panels power the home or business.

✔ Extra units go to the grid

These units are recorded as exported electricity.

✔ DISCO buys these units

Consumers receive credits on their monthly bill.

✔ Consumers draw power at night

Any imported units (from the grid) are billed normally.

This two-way exchange keeps consumers connected to the grid even after installing solar.

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Why Pakistanis Are Shifting to Solar

Some of the top reasons include:

1. Extremely high electricity bills

Fuel price adjustments (FPA), quarterly adjustments, and taxes make bills unaffordable.

2. Load-shedding and unreliable supply

Solar offers uninterrupted daytime power.

3. Falling solar panel prices

Panel prices dropped significantly between 2023–2025.

4. The payback period is reducing

A 7–8 year payback in 2022 has fallen to 3–4 years in many cases.

5. Net-metering allows bill reduction

Consumers can significantly cut costs by exporting excess units.

Government Plans for 2026: Rebasing Power Purchase Price (PPP)

The CPPA’s statement was made during the hearing on Pakistan’s 2026 power purchase price.

PPP determines:

• how much electricity DISCOs buy
• tariff adjustments
• consumer bills
• financial impact on the power sector

The government is trying to revise PPP to tackle:

• circular debt
• fuel costs
• rupee depreciation
• low recovery rates

Solar plays a role in this long-term planning.

Will Solar Net-Metering Become a Threat in the Future?

Experts believe:

• No immediate negative impact
• But long-term effects need monitored planning

If solar adoption reaches 15%–20% of total demand, the grid may need:

• new storage solutions
• smart metering
• revised tariff structures
• flexible energy markets

Pakistan is still far from that threshold.

Impact on Consumers and the Energy Sector

✔ Consumers

• Reduced bills
• Better control over energy use
• Renewable energy access

✔ DISCOs

• Need better planning
• Must reduce line losses
• Improve infrastructure

✔ National Grid

• Currently stable
• Not affected by solar injections
• Capable of supporting more solar units

This creates a positive environment for renewable expansion.

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Conclusion About Govt Says Solar Net-Metering Not Hurting National Grid in Pakistan:

The government’s clarification is a major win for Pakistan’s solar users. Despite dramatic growth in solar net-metering injections — a 173% rise in one year — the national grid remains unaffected.

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