• PM Shehbaz Sharif directs a review of net metering regulations by NEPRA and Power Division.
• The proposed changes focus on net metering, a billing system for surplus solar energy credits.
• Govt aims to balance renewable energy promotion and financial sustainability in the power sector.

Prime Minister Shehbaz Sharif has instructed the National Electric Power Regulatory Authority (NEPRA) and the Power Division to review and amend net metering regulations in response to concerns raised by distribution companies (Discos).

Net metering, a billing system that allows consumers to feed excess solar energy into the grid and receive credits on their electricity bills, is the focal point of these proposed changes.

During a meeting, the Power Division presented its case to the Prime Minister, highlighting the financial strain faced by Discos due to widespread net metering, which is contributing to revenue shortfalls. To address this, the Division proposed lowering the buyback rates from the current Rs21 or Rs22 per unit to Rs11 or Rs12 per unit.

It was decided that the Division would refine the rationalization plan, with a focus on transitioning from the existing net metering system to gross billing. This would involve distinct rates for importing and exporting units, the introduction of a separate tariff category, revisions to buyback rates, amendments to net metering regulations, and the establishment of a dynamic formula to determine a reasonable payback period.

In a separate statement on Wednesday, Power Minister Awais Leghari clarified that the government does not currently plan to impose taxes on solar net metering. He assured that existing regulations for installed solar systems would remain unchanged for the time being. However, he acknowledged that net metering might be revisited in the future due to its potential impact on fiscal deficits and circular debt.

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These developments underscore the government’s efforts to balance the promotion of renewable energy through net metering while addressing financial concerns and ensuring sustainability in the power sector.