The federal government has decided to implement major changes to the net metering system in Pakistan to regulate the growing use of solar energy and address the financial challenges faced by electricity distribution companies.
Under this initiative, the existing net metering framework will be replaced with a new net billing policy, which is expected to lead to a significant increase in monthly electricity bills for households and other consumers.
Currently, consumers who generate surplus electricity through solar panels and feed it into the grid can offset an equivalent number of units from their bill. As a result, many consumers pay little or nothing for electricity. However, under the new net billing policy, this system will change.
Now, consumers will pay the full national tariff for every unit of electricity drawn from the grid, typically between Rs50 and Rs60 per unit, while the excess electricity sent back to the grid will be credited at a much lower rate, around Rs10–15 per unit (some reports suggest approximately Rs11).
Experts warn that this change will directly impact the monthly savings of solar users.
For instance, a consumer generating 300 units per month from solar panels and consuming the same amount would previously have had a near-zero bill. Under the new system, however, the bill could rise to Rs8,000–10,000 due to full charges for grid electricity and low credit for surplus units supplied back.
The government and distribution companies argue that the current net metering system has increased grid maintenance and infrastructure costs, placing a burden on the national treasury.
The new policy has therefore been deemed necessary to maintain grid stability and financial balance.
