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Home Business

Solar adoption is in danger when NEPRA changes the rules for net metering

by Daily Patriot
September 19, 2022
in Business
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As Pakistan’s top electricity regulator prepares to impose costs for selling electricity to WAPDA via net metering, the country’s mix of renewable energy sources is in danger of disintegrating. The Distributed Generation and Net Metering Regulations, 2015 are being modified by the National Electric Power Regulatory Authority (NEPRA) in order to decrease the payout for distributor generators participating in net metering by roughly 30%.

Net metering users who now deliver power to WAPDA would likely see a 20 percent loss, and some customers may now be obliged to pay the bill. The key components of the suggested changes to solar energy are as follows:

Two-envelope, one-stage bidding
Tariff in a straight line
Tariff indexation of dollars by 70%
NEPRA benchmark tariff
Power purchase assurance
The government will offer land and connectivity
Free of all import-related taxes and charges
25 years on a BOOT basis, maximum
A 15% income tax rate

Guaranteed payment via bank debit on the 60th day, Following the invoice, details indicate that NEPRA has already asked the public for feedback on the suggested features until the end of September, at which point the law is anticipated to be finished.

The regulator’s action has discouraged both current and potential net metering applications rather than encouraging the use of renewable energy in costly thermal generation systems dependent on imported fuels.

A sizable number of customers have already complained to NEPRA about the proposed change to its rules, which they see as a barrier to the use of solar energy in the nation.

Tags: distributor generatorsNEPRAPakistan's top electricity regulatorSolar adoptionWAPDA
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