Pakistan: Government Clarifies Stance on Solar Net Metering

On Sunday, Pakistan's Federal Minister for Energy Awais Ahmad Khan Leghari stated that the government had no intentions to terminate the net-metering policy for solar energy.

This statement from the minister came after recent media reports claimed the government planned to scrap the net-metering policy and implement a new gross-metering system instead.

The current net-metering policy enables consumers to sell any excess electricity generated by their solar panel systems back to their utility company. This results in considerable savings on their monthly electricity bills.

However, with gross metering, the electricity produced by consumers' rooftop solar systems feeds into the national grid, which they must repurchase from the utility, potentially decreasing the financial benefits.

The Energy Minister reaffirmed their commitment to net metering to support citizens who invest in renewable energy sources to meet their own needs while supplying excess clean power to the nation’s electricity infrastructure. The government has no plans to transition to a gross metering policy that would undercut many of the incentives for going solar.

During a press conference at Lahore Electric Supply Company (LESCO) headquarters, the minister dismissed media reports and stated that the government would continue encouraging solar power adoption through the net-metering policy, as it was pioneered by former Prime Minister Nawaz Sharif in his previous term.

The minister said the Pakistan Muslim League Nawaz (PML-N) introduced the solar net metering scheme in 2017 and will keep promoting it since it aligns with current Prime Minister Shahbaz Sharif's vision. He expressed pride in the policy, claiming many benefited from it.

The minister assured consumers who already installed solar panels and have net-metering contracts that they will be unaffected. He added that the government will keep encouraging net metering in the future, only changing the policy after consulting stakeholders.

When first launched in 2017, high solar panel prices deterred applicants, but numbers increased over time, with 2023-24 applications rising 125 percent, the minister said. He claimed that 0.3 percent of all electricity consumers now have rooftop solar net-metering.

“The number of total net metering connections has reached 113,000.”

Regarding other power sector issues, the minister said overall electricity demand dropped 8 percent due to declining industrial activity. He stated the LESCO CEO was instructed to address system constraints to prevent overloading during summer.

Without naming names, the minister criticized a province for politicizing power theft issues. He expressed hope that the province's chief minister would present a viable theft reduction plan within 15 days.

While the immediate future of net metering looks secure, it's always a good idea to stay updated. Keep an eye on official government channels and reliable news sources for any further developments.