By The Pakistani government is considering switching from the current net metering system for rooftop solar panels to a gross metering policy. This move aims to address significant financial challenges in the power sector, where non-solar consumers have faced an additional financial burden of Rs. 200 billion during the fiscal year 2023-24 due to the widespread adoption of solar energy systems.
The shift comes amid broader efforts to manage the financial health of the sector and ongoing negotiations with the International Monetary Fund (IMF). In the existing net metering system, solar panel owners can offset their electricity bills by feeding excess power back into the national grid, effectively reducing their energy costs.
However, under the proposed gross metering system, all electricity generated by solar panel users will be sold to the grid at a predetermined rate, while consumers will buy back their electricity needs separately at potentially higher rates. This change could reduce the financial benefits solar users currently enjoy, creating a less attractive environment for investing in renewable energy.
The government justifies this shift by highlighting the need for equity among consumers. With the growing adoption of solar power, the demand for grid electricity has declined, leading to higher tariffs for non-solar users who still rely on the grid to cover fixed maintenance costs. The proposed policy seeks to balance contributions to the power infrastructure by ensuring that all consumers, regardless of their energy sources, share the financial burden more equitably.
Moreover, the government anticipates that the gross metering policy will help improve revenue for power distribution companies, which have been under financial strain. This approach aligns with ongoing efforts to renegotiate capacity payments with power producers. The proposal is expected to be presented to the federal government and the Council of Common Interests (CCI) for final approval.
Authorities are also assessing the return on investment for solar users and its impact on households as they prepare for the transition. This potential policy shift highlights the complex challenge Pakistan faces in promoting renewable energy while ensuring the financial sustainability of its power sector. Balancing the interests of solar users and grid-dependent consumers will be crucial to achieving a fair and economically viable energy system.
