ISLAMABAD: Pakistan’s government is considering replacing its net metering policy for rooftop solar with a net billing mechanism for solar consumers across the country, an official confirmed on Wednesday, as Islamabad looks to ease financial strain on the struggling power sector.
Under the proposed framework for the net billing system, electricity generated by rooftop solar systems and exported to the national grid by consumers would be bought at a rate 60 percent lower than the previous price of electricity. Consumers, on the other hand, will continue to buy power from the national grid at the prevailing commercial rates. Net metering, on the other hand, allows power consumers to offset exported units directly against imported electricity at the same price.
Government officials say the policy change is aimed at easing mounting financial pressure on Pakistan’s power sector, where rapid solar adoption has reduced revenues for distribution companies even as fixed capacity payments to power producers continue to rise.
Pakistan has seen a surge in residential and commercial solar systems in recent years as soaring electricity prices drive inflation and power outages increase in the country.
