The federal government of Pakistan is considering a significant reduction in the solar net metering tariff, which could significantly impact rooftop solar panel installations across the country.
Currently, solar system owners are compensated over Rs21 per unit for the electricity they supply to the national grid. However, the proposed new rates range between Rs7.5 and Rs11 per unit, cutting the previous payment by more than half.
New Tariff Structure
Current Rate: Over Rs21 per unit
Proposed Rate: Rs7.5 to Rs11 per unit
Equivalence of Electricity Exchange
Current Ratio: 2 units of solar-generated electricity = 1 unit of national grid power
Proposed Ratio: 6 units of solar-generated electricity = 1 unit of national grid power
Impact on Solar Consumers
Selling Surplus Electricity: Solar consumers would sell their surplus electricity at Rs7.5-11 per unit.
Grid Electricity Cost: Consumers would pay Rs60 per unit for grid electricity consumed during nighttime or peak hours.
The proposed tariff reduction comes in the wake of concerns raised by the International Monetary Fund (IMF) regarding the rising adoption of solar energy in Pakistan. The IMF has expressed apprehensions that increased solar generation could disrupt the country’s existing capacity payment obligations to power producers, a critical component of its energy policy framework.
Renewable energy specialists have voiced concerns that the new policy could reverse the increasing electricity prices making solar energy a viable option for consumers. They argue that the adjustments could discourage further adoption of solar panels and mitigate capacity payment challenges faced by power producers
For more detailed information, you can check out the full articles here and here.
