The decision to revise the buyback rates for surplus electricity generated by rooftop solar systems marks a significant shift towards ensuring energy price equity for all consumers. The revised net-metering framework, which lowers the purchase price for surplus solar power while maintaining grid electricity rates, is a necessary adjustment to prevent disproportionate benefits accruing to affluent solar users at the expense of those dependent on the national grid.
Under the updated policy, power distribution companies will buy surplus electricity from net-metered consumers at Rs10 per unit, a sharp decrease from the previous Rs27 per unit. In contrast, the grid will supply electricity to these consumers at Rs42 per unit during off-peak hours and Rs48 per unit during peak hours. These changes will apply immediately to new net-metered consumers, while existing users will transition after their seven-year contracts expire. Furthermore, solar system owners will no longer be allowed to install systems exceeding their sanctioned load, except for a 10pc cushion—a reduction from the previous 50pc margin.
These revisions stem from three primary concerns. Firstly, many rooftop solar owners have installed systems with surplus generation far beyond their self-consumption needs. This allows them to export excess power to the grid during daylight hours and reclaim it after sunset, effectively using the grid as a storage system without contributing to transmission or capacity costs. Such a practice burdens the system and creates financial disparities in energy distribution.
Secondly, the financial impact of net-metered consumers on the broader electricity grid is significant. Affluent urban solar users have already contributed to a nine-paisa per unit rise in the national electricity cost. Without policy intervention, this impact could surge to Rs3.6 per unit by 2034. By the end of December 2024, approximately 283,000 rooftop solar users had shifted a financial burden of Rs159bn onto traditional grid consumers. This imbalance necessitated immediate corrective measures to prevent further cost escalation for non-solar households.
Thirdly, the rapid increase in distributed solar power presents technical challenges. The high concentration of net-metered solar generation in urban centers could compromise grid stability and lead to infrastructure failures if left unchecked. Addressing these concerns through revised regulations ensures long-term sustainability and reliability of the energy supply system.
Despite criticism from some quarters, the policy shift is both justified and necessary. While tighter net-metering conditions may extend payback periods for oversized solar installations, the continued decline in solar equipment costs ensures that small-scale solar remains an economically viable option. Solar power will continue to be cheaper than grid electricity, reinforcing the financial logic for households to invest in self-consumption-based solar systems rather than oversized installations aimed at maximizing exports.
These revisions are essential for maintaining a fair energy pricing structure, protecting the grid’s integrity, and ensuring that all consumers—solar and non-solar—share the costs equitably. A balanced approach will help sustain Pakistan’s energy transition while preventing undue financial strain on grid-dependent households.
