Islamabad - The Pakistani government was worried about the increasing use of solar net metering, as it was causing challenges in managing capacity charges due to the rapid rise in installations. This was particularly problematic as more upscale customers were quickly adopting net metering systems.
The current government is considering reducing the rates paid to consumers who generate solar power through net metering, a decision that has received criticism from the public.
According to a report from a local publication, the installed capacity has now reached 3,000 megawatts due to the growing adoption of solar power.
Solar Net Metering New Rates
As of April 2024, users of net metering are currently being paid Rs21 per unit for extra electricity they send back to the grid. However, the alliance government is considering reducing this rate to Rs11 per unit, leading to a loss of Rs10 per unit for those generating solar power.The government's main reason for this move is the financial strain caused by capacity charges paid to Independent Power Producers (IPPs), which the government pays regardless of whether they use the electricity from IPPs.
The surge in demand for solar panels has also disrupted the government's payment plans, with the government arguing that the current rate allows consumers to recover their solar panel costs in 18 months. Power companies, however, are pushing for this payback period to be extended to 10 years.
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