ISLAMABAD, Pakistan — The federal government is considering major changes to net metering and incentives for solar power prosumers, as authorities look for ways to reduce mounting financial pressure on the country’s electricity distribution companies.
Officials have indicated that the rapid growth of rooftop solar installations has significantly reduced revenue for power utilities, while fixed capacity payments and operational costs continue to rise. As a result, policymakers are now weighing measures that could shift a greater financial burden onto households and businesses that both produce and consume electricity.
Why Prosumers Are in Focus
Government assessments suggest that prosumers — consumers who generate electricity through solar panels and feed surplus power back into the grid — are benefiting from existing net metering rates that utilities argue are no longer sustainable.
Power sector officials say distribution companies are being forced to recover losses from non-solar consumers, contributing to higher tariffs for the broader public.
Possible Policy Changes
Authorities are reportedly examining several options, including:
- Revising buyback rates for surplus solar electricity
- Introducing additional charges for grid usage
- Limiting eligibility for net metering benefits
Any changes would aim to stabilise the finances of power utilities while maintaining grid reliability.
Concerns Over Investment and Trust
Energy experts have warned that abrupt policy shifts could undermine investor confidence and discourage renewable energy adoption. They stress that solar energy has helped reduce fuel imports and eased pressure on foreign exchange reserves, making it a critical component of Pakistan’s energy transition.
Consumer groups have also cautioned that penalising early solar adopters could be perceived as unfair, particularly after years of encouragement to invest in clean energy solutions.
Balancing Reform and Sustainability
Officials maintain that reforms are necessary to ensure the long-term viability of the power sector and prevent further tariff hikes for non-solar users. However, they say any decision will be made after consultations and with an effort to strike a balance between financial stability and renewable energy growth.
This story has been reported by PakTribune. All rights reserved.