Pakistani solar power users can breathe a sigh of relief as the government has decided not to cut the buyback rate for excess electricity fed into the grid.
In a recent cabinet meeting chaired by Prime Minister Shehbaz Sharif, it was decided to gather more feedback before implementing changes to the Solar Net Metering Regulations. This means the buyback rate will remain unchanged for now.
Previously, the Economic Coordination Committee (ECC) had proposed lowering the buyback rate from Rs 27 per unit to Rs 10 per unit, sparking widespread criticism. The Finance Ministry justified the move, citing market conditions and the financial impact of solar energy on national grid users.
Reports presented to the ECC highlighted that solar users had shifted Rs 159 billion in costs onto grid consumers by December 2024. This figure is expected to rise dramatically to Rs 4,240 billion by 2034.
Pakistan has seen a rapid rise in solar adoption, with the number of solar consumers reaching 283,000 in December 2024—up from 226,440 in October. Solar power generation also surged from 321 MW in 2021 to 4,321 MW in 2024.
For now, solar consumers can continue benefiting from net metering without a reduced buyback rate. However, further discussions and potential changes remain on the table.