Pakistan power minister warns solar net-metering may raise national costs by Rs3–4 per unit, urging reforms to protect ordinary consumers from high bills.
What is Solar Net-Metering?
Solar net-metering is a billing system that allows people to generate electricity through solar panels and send the extra power back to the grid. In return, users receive credits or cash for the electricity they supply. This system helps lower electricity bills for solar users while also promoting clean energy.
In Pakistan, thousands of households and businesses have shifted to solar panels in recent years to reduce their dependence on expensive grid electricity. However, the way this system is structured has now raised concerns for the government.
Net-Metering Policy in Pakistan
Pakistan approved its solar net-metering policy in 2017 to encourage renewable energy. Under the current rules, solar users get paid Rs21 per unit for their extra electricity. This rate includes a Rs1.90 subsidy that is covered by the government and non-solar consumers.
At first, this system was welcomed as a way to promote solar adoption. But over time, the financial burden shifted heavily onto ordinary consumers who do not use solar energy.
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Who Actually Benefits?
According to official data, only 0.6% of electricity consumers in Pakistan are using net-metering. Out of these, 80% belong to affluent urban areas. This means the benefits are limited to a small segment of society, while 99.4% of consumers—mostly middle- and low-income families—end up paying higher bills to cover the subsidies given to solar households.
Minister’s Warning About Rising Costs
Power Minister Sardar Awais Leghari has repeatedly warned that the current net-metering setup is unsustainable. At a press conference in Lahore, he explained that if the system continues without reform, 200,000–300,000 people will benefit while the rest of the nation will face an additional cost of Rs3–4 per unit.
This cost, he said, directly impacts ordinary consumers who are already struggling with high electricity prices and inflation.
Government’s Efforts to Cut Tariffs
The government is under pressure to reduce power prices. Currently, around 18 million electricity users get electricity at a 70% discount, up from nearly six million in previous years.
Prime Minister Shehbaz Sharif has instructed the energy ministry to explore new ways of cutting power tariffs further. Revising the net-metering policy is one of the key steps under discussion.
Why Net-Metering Needs Change
Minister Leghari highlighted that it is impossible for Pakistan to keep buying solar power from distributors at the current high rate. The government believes that unless the system is restructured, the financial gap will keep widening, making electricity even more expensive for the poor majority.
The idea is not to discourage solar power, but to ensure a fair balance between solar users and non-solar consumers.
Pakistan’s Solar Power Potential
Pakistan is one of the best countries in the world for solar energy. Most regions receive more than nine hours of sunlight daily, making solar a powerful option to reduce reliance on imported fuels.
The World Bank estimates that if Pakistan uses just 0.071% of its land area for solar PV generation, it could meet its entire electricity demand. This shows the huge potential that remains untapped.
Renewable Energy Targets
Pakistan has set ambitious goals to transform its energy sector:
- 60% renewable energy by 2030
- 50% reduction in projected emissions
But despite strong growth in solar adoption, progress is slow. High initial costs of solar panels, lack of supportive financing, and policy uncertainty remain major hurdles.
The Road Ahead
Experts believe that Pakistan needs to strike a balance between encouraging solar investment and protecting ordinary consumers from additional costs. Adjusting the net-metering rates, introducing targeted subsidies, and expanding community solar projects could help achieve this balance.
If done right, Pakistan can expand clean energy while keeping electricity affordable for its 241 million citizens.
