The federal cabinet has put the controversial new Solar Net Metering Regulations on hold, providing temporary relief to solar energy consumers across Pakistan. The proposed regulations aimed to reduce the buyback rate of solar-generated electricity to Rs10 per unit—a move that sparked widespread criticism and concern among stakeholders.

Background of the Decision

The Economic Coordination Committee (ECC) initially introduced the proposal, citing concerns over financial strains on the national grid. According to their report, solar users shifted Rs159 billion in costs to grid consumers in 2024, and projections indicated that this figure could soar to Rs4,240 billion by 2034. The committee argued that adjusting the buyback rate was necessary to maintain grid stability and ensure fair electricity pricing.

However, the decision faced significant backlash from solar users, energy experts, and environmental advocates, who contended that the policy could discourage the adoption of renewable energy and slow down Pakistan’s progress towards energy independence.

PM Shehbaz Sharif Intervenes

Recognizing the concerns raised by stakeholders, Prime Minister Shehbaz Sharif directed the authorities to halt the implementation of the new regulations and initiate further consultations. This decision has been welcomed by solar consumers and industry leaders, who argue that a more balanced approach is needed to support both solar users and the national grid.

Rising Solar Adoption in Pakistan

The solar energy sector in Pakistan has witnessed remarkable growth in recent years. By December 2024, the number of solar consumers had reached 283,000, highlighting the increasing shift towards sustainable energy solutions. The delay in implementing the new net metering policy provides an opportunity to explore alternative strategies that encourage renewable energy adoption without disproportionately impacting grid consumers.

What Lies Ahead?

With the implementation of the new policy temporarily paused, the government now has a crucial opportunity to engage with stakeholders, including solar energy consumers, experts, and policymakers, to develop a more balanced and forward-thinking energy policy. The coming months will be critical in determining the future trajectory of net metering regulations in Pakistan and their impact on the renewable energy landscape.

For now, solar users can breathe a sigh of relief—but the debate on net metering policies is far from over.