ISLAMABAD – Bad news for Pakistani solar power consumers who invested millions to rake in some profits as the coalition government proposed cutting rate for surplus electricity under new policy.
The new plan will come under discussion during $7 billion program review by US based lender as officials expressed concerns about mushrooming of off-grid solar panel owners and how the government will manage this increasing trend.
To revamp the solar net metering rates, the Shehbaz Sharif-led government submitted a proposal to a financial agency to revise electricity tariffs for solar panel owners who participate in net metering.
Solar Net Metering Rates in Pakistan
As per the proposal, the net metering rate will be dropped from Rs27 per unit to around Rs10 per unit.
IMF raised concerns regarding the government’s approach to solar panel owners who remain off grid. As the government has not yet committed to a robust solution, the IMF highlighted the rapid rise in solar installations.
As part of its broader efforts to rationalize power tariffs, the federal government has already undertaken major steps. Multiple inefficient power plants were decommissioned and negotiations with IPPs are expected to yield additional cost savings.
Officials also revealed that the government is considering using the Rs1.3 trillion fiscal space created by lower debt servicing costs to reduce baseline electricity tariffs. These measures form part of a wider strategy aimed at addressing IMF concerns and restructuring the national power sector to improve its efficiency and sustainability in the face of growing solar energy adoption.
Solar panel plates prices for 10kw setup from March 2025 in Pakistan
