The revision of the solar net metering policy, reducing buyback rates and ending net billing, not only discourages future uptake of rooftop setups, but also violates the promises made by the PMLN in its election manifesto.
The Economic Coordination Committee has reduced the buyback rate from Rs. 27/unit to Rs. 10/unit and barred consumers from installing solar capacity exceeding their sanctioned load by more than 10%, compared to the 50% margin permitted earlier. The government has justified the policy shift by claiming it benefited “affluent” consumers and placed additional burdens on grid consumers.
The Power Division has claimed that, as of December 2024, solar net-metering consumers transferred Rs. 159 billion burden to grid consumers, with expectations this could surge to Rs. 4,240 billion by 2034. While this merits attention, penalizing solar investment is a misguided approach that fails to address the root causes of the issue. It also undermines public trust in a government ever willing to shift its policies at a whim, and hampers the nation’s progress toward energy self-sufficiency and environmental sustainability.
Adding insult to injury, the ruling PMLN had claimed credit for “encouraging roof top solar power” just a year back in its 2024 Election Manifesto. In the same document, the party had claimed it would “encourage rooftop and distributed solar power plans.” The swift abandonment of the same plans underscores the pointlessness of manifestos, which all parties unveil with much fanfare before largely forgetting them once in power. What the development also signifies is the government’s inability to effectively manage power tariffs and ill-conceived contracts with independent power producers—many of which were also inked by the same PMLN.
The contracts, several of which the government has sought to renegotiate under controversial circumstances over the past year, often include exorbitant capacity payments. These obligate the government to pay for unused electricity, thereby inflating the overall cost of power generation. This inefficiency has led to soaring electricity prices, prompting consumers to seek alternative solutions like solar energy to mitigate their energy expenses.
Instead of discouraging solar adoption, the government should expand efforts to renegotiate the unfavorable IPP contracts and implement comprehensive energy reforms. Addressing systemic inefficiencies within the power sector can alleviate the financial burden on all consumers without stifling the growth of renewable energy. Moreover, introducing regulatory measures to ensure equitable cost distribution among solar and non-solar consumers can mitigate any unintended financial disparities.
Instead, the PMLN-led government has opted to ignore the underlying issues plaguing the power sector and betrayed the promises it had made to its supporters. A country like Pakistan that disproportionately faces the adverse impacts of climate change needs to encourage sustainable energy solutions—not penalize individuals who invest in rooftop solar to protect themselves from poor service delivery and punishing tariffs.