Pakistan’s New Net Metering Policy 2025: Bad Impact on Solar Users Pakistan
If you are planning to install solar panels, there is some bad news. Pakistan’s new net metering policy 2025 has its impacts on new solar users, and the government will now buy excess electricity at 10 rupees per unit instead of 27 rupees. This new rate will apply only to new net metering users, while existing users will not be affected.
What is Net Metering?
Net metering is a system where solar panels installed at homes or businesses generate electricity from sunlight. If the electricity produced exceeds the user’s consumption, the excess is sent to the grid. In return, users receive either a discount on their electricity bills or the government buys the excess electricity from them.
Why Was the Policy Changed?
The government claims that the increasing number of users was putting a financial burden on regular electricity consumers. Since the government has to pay fixed capacity charges to power generation companies regardless of electricity usage, this burden is passed on to other consumers. According to the government, net metering has caused an additional financial load of more than 159 billion rupees on regular consumers by the end of 2024. However, some experts, including former Finance Minister Miftah Ismail, argue that this figure is exaggerated.
Awais bhai once again I am thankful to you for responding to my tweet.
— Miftah Ismail (@MiftahIsmail) March 14, 2025
I read in the news that your government has moved to something called gross metering and has effectively reduced the rate for new solar customers from Rs 27 per unit to Rs 8.43 per unit and for existing… https://t.co/bVi3s41OxX
Impact of the New Net Metering Policy
Now, the government will buy electricity from new net metering users at 10 rupees per unit, while they will have to purchase electricity from the grid at 60 rupees per unit. This change will discourage net metering and make it less beneficial for users to connect their solar systems to the grid. Existing users will not be affected and will continue to sell electricity at the previous rate until their contracts with power companies expire. You can check the Lesco bill easily.
Effect on Solar Investment
Installing a complete solar system costs around 10 to 15 lakh rupees. Under the previous policy, users expected to recover their investment quickly. However, the new policy reduces these financial benefits. Experts believe that, as a result, more people will shift towards off-grid solar systems to avoid dependence on government policies.