Breaking News: Govt Plans to Cut Solar Net Metering Rate to Rs.11.30 – Major Impact on Rooftop Users
The government of Pakistan is preparing to introduce a major policy shift under the Solar Net Metering Rate Pakistan 2025 framework — a move that could reduce the buyback rate from Rs.22 per unit to Rs.11.30. This decision, currently under review by the Power Division and NEPRA, aims to control grid revenue losses caused by the rapid rise in rooftop solar installations nationwide. However, this proposed change has alarmed thousands of home and business owners who depend on net metering to cut their monthly electricity bills by up to half.
Officials argue that the current NEPRA Net Metering Policy 2025 needs revision because it’s creating financial pressure on power distribution companies (DISCOs). According to government data, solar users exported over 3.2 billion units to the grid in FY2024, causing a Rs.101 billion loss in DISCO revenues. As a result, non-solar consumers are indirectly paying more for electricity to compensate for this growing deficit — a concern the government now wants to address through a lower solar buyback rate.
While the Solar Buyback Rate 2025 proposal may seem harsh for rooftop users, officials claim it’s essential to restore “economic balance” in Pakistan’s power sector. The Prime Minister has already directed the Power Division and NEPRA to re-evaluate the current Rs.22/unit policy, analyze its long-term impact on grid stability, and submit new recommendations. If approved, the revised Rs.11.30/unit rate would significantly alter the return on investment for millions of solar consumers across Punjab, Sindh, and Khyber Pakhtunkhwa.
Solar Net Metering Pakistan 2025 – What This New Decision Means
In a surprising policy shift, the government of Pakistan is considering cutting the Solar Net Metering Pakistan 2025 buyback rate from Rs.22 to Rs.11.30 per unit. The move is part of the Power Division’s new plan to control rising grid losses and protect non-solar consumers from higher electricity costs.
This policy review has created major concern among rooftop solar users across Punjab, Sindh, and KPK — as it could reduce their electricity savings by nearly 50%.
What Is Solar Net Metering in Pakistan and How It Works
Solar net metering allows households and businesses to sell excess solar electricity generated from rooftop systems back to the national grid. Under NEPRA’s current rules, exported units are credited to consumers at a fixed rate — currently Rs.22 per unit.
However, if the proposed Solar Buyback Rate 2025 becomes Rs.11.30, users will receive almost half the return per exported unit, impacting overall savings and investment returns.
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Govt’s Plan to Reduce Solar Buyback Rate 2025 – From Rs.22 to Rs.11.30
| Category | Current (2024) | Proposed (2025) | Effect |
|---|---|---|---|
| Buyback Rate (Net Metering) | Rs.22 per unit | Rs.11.30 per unit | 50% reduction |
| Annual Grid Loss | 3.2 billion units | Could rise to 18.8 billion by 2034 | Higher |
| Financial Impact | Rs.101 billion loss in FY2024 | Rs.545 billion projected by FY2034 | Severe |
| PM’s Action | Ordered NEPRA & Power Division Review | Pending Final Decision | Under Review |
The government claims that while solar energy adoption is crucial, the Net Metering Rate Cut 2025 is needed to maintain grid balance and protect affordability for traditional users.
Why Solar Net Metering Pakistan 2025 Is Being Revised
Officials cite several reasons for this major change in the NEPRA Solar Policy 2025:
1. Rising Grid Revenue Loss
Pakistan’s distribution companies reported Rs.101 billion losses in FY2024 due to declining grid sales caused by growing rooftop solar adoption.
2. Burden on Non-Solar Consumers
Since solar users avoid fixed charges but still use the grid infrastructure, officials argue the cost burden unfairly shifts to non-solar consumers, raising tariffs for everyone else.
3. Cheaper Large-Scale Solar Projects
Utility-scale solar projects are being contracted below Rs.10 per unit, making the Rs.22 rooftop rate economically unviable.
4. Grid Instability Risk
With 6,000MW net-metered capacity, low winter demand (8,000–9,000MW) can lead to over-generation, reverse power flow, and voltage instability.
Official Statement on NEPRA Net Metering Policy Review 2025
A Power Division spokesperson said:
“The Prime Minister has directed NEPRA to re-evaluate the buyback rate structure to ensure fair treatment for all electricity users. Solar expansion must continue, but on a sustainable path.”
This means the Solar Net Metering Rate Cut 2025 is not final yet — a formal review is underway before NEPRA issues new tariffs or amendments to the Net Metering Rules 2015.
Impact on Solar Users – How the Rs.11.30 Rate Affects You
Reduced Solar Power Savings
A 10kW rooftop system generating 1,000 exportable units monthly currently earns Rs.22,000. Under the new rate, that amount will fall to Rs.11,300 — a 50% loss in export income.
Longer Payback Period
At Rs.22/unit, most systems achieve payback in 2–3 years. Under Rs.11.30/unit, this could extend to 5–6 years, affecting affordability and investor confidence.
Lower Solar Export Incentives
Consumers may now focus on self-consumption rather than exporting excess power. Battery-based systems could become more popular in 2025 and beyond.
Effect on Existing Solar Users
The Power Division is reviewing whether the revised Solar Buyback Rate 2025 will apply to existing contracts. Experts believe that users under the Net Metering Rules 2015 might stay protected.
Proposed NEPRA Solar Net Metering Reforms 2025 – What May Change
The Power Division is analyzing different reform models to make the policy more equitable and modern:
| Proposed Change | Details |
|---|---|
| Net Billing System | Instead of full credit, users may get adjusted compensation per unit based on market rate. |
| Tiered Rate Structure | Higher rates for smaller domestic users, lower for large commercial systems. |
| Grid Maintenance Charges | A new fixed charge may apply for all solar users to support infrastructure costs. |
| Dual Tariff Policy | Separate buyback rates for existing and new users to avoid retroactive impact. |
Solar Power Benefits Still Strong in Pakistan 2025
Even if the Solar Buyback Rate Pakistan 2025 drops, the overall benefits of solar remain powerful:
| Benefit | Explanation |
|---|---|
| Lower Bills | Generate your own power and reduce grid dependency. |
| Energy Security | Stay protected from load-shedding with hybrid systems. |
| Environmental Protection | Cut CO₂ emissions by nearly 1 ton per kW yearly. |
| Long-Term Value | Solar homes enjoy higher property value. |
| Inflation Shield | Avoid tariff hikes and fuel cost adjustments. |
Step-by-Step Process to Apply for Net Metering in Pakistan 2025
- Install Solar System – Use AEDB-approved vendors for certified installation.
- Submit Application – Apply through your area’s DISCO (LESCO, MEPCO, GEPCO, etc.).
- Inspection & Testing – DISCO inspects your setup before approval.
- Meter Installation – Bi-directional net meter is installed for export/import measurement.
- NEPRA Licensing – Generation license issued under Net Metering Rules 2015.
- Start Exporting Electricity – Sell your surplus units to the national grid.
Future of Solar Energy in Pakistan 2025 – What Lies Ahead
Analysts predict that the government will likely adopt a balanced hybrid approach — protecting current solar users while updating rates for new applicants.
Industry experts also suggest that Pakistan may introduce battery incentives and smart-grid integration policies to stabilize the system while keeping rooftop adoption profitable.
The final Solar Net Metering Rate Decision 2025 is expected early next year after NEPRA’s public consultations.
FAQs – Solar Net Metering Pakistan 2025:
1. What is the new proposed solar buyback rate in Pakistan?
The government plans to cut the rate from Rs.22 to Rs.11.30 per unit.
2. Will the new rate apply to existing solar users?
That’s under legal review; current contracts may remain protected.
3. Why is the rate being reduced?
To control grid losses, ensure fair cost sharing, and align rooftop rates with current large-scale project costs.
4. Is solar still beneficial after the rate cut?
Yes. Using solar for self-consumption remains cheaper than buying grid electricity.
5. When will the new solar policy be announced?
Expected after NEPRA hearings in early 2026.
6. Can I still apply for net metering at Rs.22/unit?
Yes. Until NEPRA officially changes the policy, the current rate remains valid.
7. Will commercial users face different rates?
Likely yes; the government may set tier-based or separate tariffs.
8. How can users maintain savings after the cut?
Use more solar power directly, install batteries, and reduce grid reliance.
Conclusion – Solar Net Metering Rate Pakistan 2025 at a Crossroads
The proposed Solar Net Metering Rate Reduction to Rs.11.30/unit has ignited a nationwide debate. While the government wants to protect non-solar consumers and ensure grid stability, the decision could impact rooftop solar adoption and investor confidence.
Experts urge policymakers to adopt a gradual, fair approach that balances economic realities with the country’s renewable energy vision. For consumers, solar power remains a smart, sustainable investment, especially with proper system design and self-consumption strategies.
