Government Proposes Reduction in Solar Net-Metering Incentives

The Power Division is working on a new proposal to extend the payback period for solar net metering from the current 1.5 years to around 2 or 3 years. The aim is to bring more balance to the energy market and address what officials see as excessive profits from rooftop solar systems. The proposal is expected to be presented to the federal cabinet within the next two weeks.

Federal Power Minister Awais Leghari has clarified that this change will not reduce electricity bills directly, but it could help prevent future price hikes. He assured that existing net metering users will not be penalized, though he emphasized that the current rate of return is not financially sustainable for the national grid.

Leghari also mentioned that a summary on wheeling charges has been forwarded to the cabinet. In parallel, the government is in talks with the IMF to sell surplus electricity, estimated at 5,000 to 6,000 megawatts, to high-consumption industries such as data centers and crypto mining. This could help generate revenue and ease pressure on the power system.

Additionally, provinces have been informed that Discos will no longer collect electricity duty on their behalf. Only one province has responded so far, with the matter expected to go before the cabinet soon.