Government Ends Net Metering: Solar Panel Users Now Have to Pay Fixed Charges!

• Speculation surrounds solar net metering in Pakistan due to a surge in installations.
• The Power Division denies reports of ending Pakistan's net-metering policy.
• Plans for a 600-MW solar power plant in collaboration with Saudi Arabian investors are underway.

In recent days, speculations have been rampant regarding the future of solar net metering in Pakistan, fueled by a surge in net metering installations that has posed challenges for the government in managing capacity charges.

Amid these speculations, the Power Division has clarified that reports suggesting the end of Pakistan's net metering policy are baseless. The division stated that no instructions have been issued to terminate the net metering policy, refuting claims of a policy shift in this regard.

The confusion arose following a digital publication's report about a document mentioning special instructions regarding net metering tariff rationalization and amendments to the Net Metering Regulations. However, the Power Division's stance is clear: there are no plans to end solar net metering.

Earlier reports indicated that Prime Minister Shehbaz Sharif had ordered the termination of solar net metering and proposed fixed charges for households with solar systems. It was also mentioned that the government planned to introduce dual rates for purchasing and selling solar electricity, with fixed monthly charges for solar consumption.

In a parallel development, the government approved the establishment of a 600-MW solar power plant in collaboration with Saudi Arabian investors. Prime Minister Shehbaz Sharif has expedited the process by prioritizing the submission of a summary outlining both proposals. If approved, the changes in solar net metering will likely come into effect in the upcoming fiscal year.

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Energy Minister Awais Leghari also weighed in on the matter, dismissing reports about abolishing solar net metering on May 20, 2024. He emphasized the significance of solar net metering to the coalition government's energy strategy.

Additionally, there have been reports of considering a shift from net metering to gross metering, which aligns with the Prime Minister's recent instructions, confirming the ongoing discussions and potential changes in solar net metering policies.