- Rooftop solar cuts grid sales by 3.2b units, costing Rs101b revenue.
- Power Division warns losses may reach Rs545b by FY2034.
- PM orders review of solar buyback rate and tariff impacts.
ISLAMABAD: The government is considering slashing the buyback rate for solar net metering from Rs22 per unit to around Rs11.30 per unit, after estimates showed the scheme has begun imposing a heavy financial burden, up to Rs2 per unit, on the conventional grid consumers, The News reported on Friday.
According to the official data, the rapid expansion of rooftop solar systems has led to a 3.2 billion units drop in grid electricity sales in FY2024, costing the distribution companies nearly Rs101 billion in lost revenue and prompting an average tariff increase of Rs0.9 per kWh for other users.
Projections by the Power Division warn that by FY2034, this figure could swell to 18.8 billion units, translating into Rs545 billion impact and a possible tariff hike of Rs5-6 per unit of grid electricity consumers. Officials say the issue has become serious enough to draw the prime minister’s direct intervention.
In a meeting on October 22, the prime minister instructed the Power Division and Nepra to “review and verify” the buyback tariff and its ripple effects before finalising reforms to the net metering regime. “The system is effectively being used as battery storage for solar consumers,” an energy official told this reporter.
“They sell excess electricity at high buyback rates — around Rs22 per unit — while avoiding fixed charges, which leaves other consumers bearing the system costs.”
New solar plants are being contracted at below Rs10 per unit, highlighting what officials call a “gross imbalance.”
The Division has proposed reducing the buyback rate to Rs11.30 per unit to reflect current economics and prevent further tariff escalation for grid-connected users.
The rapid growth of solar net metering — now estimated at 6,000MW nationwide — is also triggering operational challenges. The winter demand typically drops to 8,000-9,000MW, creating the risk of excess generation during daylight hours.
