Pakistan’s federal government is preparing to shift from its current net metering policy to a net billing system, as the installed solar capacity under net metering has now reached 2,500 megawatts. The move is aimed at ensuring long-term grid stability and aligning electricity pricing with market realities.
This development emerged during a high-level meeting led by Federal Minister for Energy, Sardar Awais Ahmad Khan Leghari, held at the Private Power and Infrastructure Board (PPIB). Officials clarified that net metering would not be discontinued entirely but would be adjusted to maintain a balanced and efficient energy system.
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Minister Leghari pointed out that the growth of solar installations requires a more sustainable model. Authorities are reportedly considering linking energy rates to dynamic pricing, enabling automatic tariff adjustments in response to market shifts.
In the same briefing, the minister revealed that the government had recently cancelled 9,000 MW worth of expensive power projects and placed levies on captive power users to bring them back to the national grid. Since June 2024, a Rs174 billion cross-subsidy has helped slash industrial power tariffs by as much as 31%, while rates for other consumers have dropped between 14% and 18%.
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The minister also stated that Pakistan currently has 7,000 MW in surplus capacity, which could be supplied to industries and farmers at 7 to 7.5 cents per unit, without any government subsidies.
These policy changes are part of a broader energy reform strategy, focusing on modernizing the national grid, boosting efficiency, and ensuring a fair energy market. Solar power, in particular, is expected to undergo structural reforms to better integrate with the evolving power landscape.