The federal cabinet has decided to pause the implementation of new Solar Net Metering Regulations, which proposed reducing the buyback rate to Rs. 10 per unit. This decision came after widespread criticism, and Prime Minister Shehbaz Sharif has directed further discussions with stakeholders before moving forward.
The Economic Coordination Committee (ECC) had initially suggested lowering the rate due to market conditions and the financial strain solar power places on grid electricity prices. According to their findings, solar users transferred Rs159 billion in costs to grid consumers in 2024, and this amount is expected to rise to Rs. 4,240 billion by 2034.
For now, the delay provides relief to solar consumers who were concerned about the lower buyback rate. Over the past few years, solar power adoption has increased rapidly in Pakistan. By December 2024, the number of solar consumers had reached 283,000, reflecting a strong shift toward renewable energy. As more people invest in solar panels, overall solar power generation has also grown significantly.
The government’s decision to hold further consultations means that any future changes to net metering will take public and industry concerns into account. Many believe this pause will help strike a balance between supporting renewable energy adoption and maintaining financial stability in the electricity sector.
American Dollar Exchange Rate