Govt Ending Net Metering in Pakistan – New Solar Policy 2025 Full Details

 


Introduction

  • Hook: The era of net metering in Pakistan is poised for a major shake‑up.

  • Thesis: The government wants to phase out net metering in favour of gross metering, citing grid strain and financial inequity as primary drivers.

  • Preview: We delve into policy changes, stakeholder impact, benefits and challenges, and what it means for current and future solar users.


2. What Exactly Is Changing?

2.1 From Net Metering to Gross Metering

  • Net metering: consumers offset their own electricity by exporting surplus to the grid.

  • Gross metering (proposed): all solar‑generated electricity sold at a set rate; grid consumption billed separately 

2.2 New Buyback Rates

  • Set at Rs 11.33/unit, roughly one-third of prior compensation (~Rs 27/unit), marking a ~60% cut 

2.3 Grandfathering of Existing Users

  • Current net‑metering users keep their existing contracts until expiry. New users fall under gross metering immediately 


3. Why Now? Government’s Perspective

  • Grid stability: A surge in distributed solar (17 GW imported in 2024) is creating frequency/technical strain

  • Financial equity: Net‑metered users avoid fixed grid costs, shifting ~Rs 159 billion burden in 2024 onto non‑solar consumers 

  • Revenue concerns: Power sector debt (~US$18 billion) and surplus capacity costs led policymakers to revise incentive structures 


4. Stakeholder Responses & Backlash

  • Clean energy advocates warn of dampened solar adoption, especially among low‑income households. Disruption to progress toward 30% renewable by 2030 

  • Public opposition: Social media and local subreddits highlight consumer frustration—“gross metering is dead net‑metering” and calls to go off‑grid 

  • Government response: Implementation paused for wider consultations after backlash; new guidelines to be resubmitted 

5. Practical Impacts

        

User Type

Net Metering (Before)

Gross Metering (After)

New User

Rs. 27. Unit buyback: net offset

Rs.11.33. unit sale: separate grid billing

Existing User

Locked in until contract end

Protected until expiry (7 years approx.)

Grid users

Cross‑subsidies via net users

Less subsidy burden over time

  • Payback period increases (from approx. 2–3 yrs to 4–5 yrs) 

  • Solar installer shift: Growth in hybrid inverters and battery storage as net metering incentives fade 

6. What Should You Do Now?

  1. If you’re an existing net‑metering user: Continue calmly—your rate is safe until contract expiry.

  2. If planning a new solar system: Consider hybrid or off‑grid setups with battery backup to maintain value.

  3. Monitor policy: Engage in public consultations and follow NEPRA for revised policies.

  4. Budget realistically: Recalculate cost-benefit including new buyback rates and separate electricity costs.


7. Future Outlook & Recommendations

  • Closely track the federal cabinet’s green light and final NEPRA approval.

  • Proposed plan seeks to bring 8,500 MW solar, but must evolve to sustain adoption 

  • Potential enhancements: dynamic pricing, grid efficiency upgrades (crypto mining, EV, AI centers) 

  • To maintain momentum: pair solar incentives with innovative policy, targeted subsidies, and robust infrastructure investment.


8. Conclusion

Pakistan’s pivot from net to gross metering marks a pivotal energy policy shift—steep cuts in buyback rates aim to reinforce grid stability and alleviate subsidy pressure, yet risk stalling solar uptake. The path forward lies in shaping a balanced system that boosts renewables, supports vulnerable consumers, and builds a resilient grid.


✅ Final SEO Tips

  • Keywords to sprinkle: “Pakistan net metering,” “gross metering,” “solar buyback rate,” “NEPRA solar policy Pakistan.”

  • Internal links suggestions: Earlier posts on rooftop solar, NEPRA regulations, grid modernization initiatives.

  • External authoritative links: NEPRA drafts, IMF/Energy Ministry statements, major news citations.

  • Formatting aids: Use H2/H3 headings, bullet lists, tables, and FAQs like “Is solar still worth it under gross metering?”


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