Solar consumers face new blow: Net metering rates slashed once again

ISLAMABAD: The government has once again lowered the rate at which it buys electricity from consumers generating power through solar panels, a move that could dent the financial incentives for solar energy users across Pakistan.

According to sources, the net metering purchase price has been reduced by 66 paise per unit, falling from Rs 27 to Rs 25.32 per unit. The decision has received formal approval from National Electric Power Regulatory Authority  (NEPRA) and will be applied to consumer bills starting this month.

Power companies have warned that the reduced rate will directly lower the credit consumers receive on their electricity bills, potentially causing financial strain for households and businesses that have invested in solar systems. Initially introduced to encourage renewable energy adoption, net metering allowed consumers to earn credit by feeding surplus electricity back into the national grid.

Experts say the latest cut could slow the momentum of solar adoption in the country. “Reducing the purchase price not only decreases consumer benefits but may also undermine efforts to promote sustainable energy,” one analyst noted.

As solar panel prices continue to rise across Pakistan, the rate reduction adds another challenge for consumers hoping to offset costs and earn returns through renewable energy initiatives.