The government is considering reducing the solar panel tariff from Rs21 per unit to Rs7.5-11 per unit under the net metering system. This drop is linked to declining solar panel prices and pressure to boost grid electricity usage.

Currently, the tariff rate for two solar electricity units equals one grid electricity unit. Under the proposed change, six solar units would equal one grid unit, making rooftop solar panels less appealing for consumers. Meanwhile, electricity from the national grid will cost Rs60 per unit during peak hours.

This adjustment comes in the wake of a $7 billion loan granted to Pakistan by the International Monetary Fund (IMF) to address the economic crisis. The IMF has expressed concerns over rising solar energy adoption and urged the government to increase demand for grid electricity.

Officials warn the new policy could discourage rooftop solar installations while addressing capacity payment issues faced by the energy sector.

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