Govt to Replace Solar Net Metering With Gross Metering

The federal government of Pakistan plans to replace solar net metering with “gross metering” to discourage in-house power generation. This new policy, initiated by the Pakistan Muslim League-Nawaz (PML-N) government, aims to significantly reduce the financial benefits of generating power through rooftop solar panels.

Under the proposed gross metering policy, the current unit-for-unit exchange formula would be abolished. Instead, the government would purchase electricity from rooftop solar panel owners at a rate set by the Central Power Purchasing Agency (CPPA), which would be half the current price. The power distribution companies (Discos) would then sell this electricity to consumers at government rates.

Discussions with the International Monetary Fund (IMF) regarding this new policy have already taken place. The final approval will be sought from the federal government and the Council of Common Interests (CCI).

Federal Minister for Energy Sardar Awais Ahmad Leghari hinted at revising the solar net metering policy to address power sector losses. Speaking at a press conference alongside Minister of State for Finance, Revenue, and Power Ali Pervaiz Malik, Leghari mentioned the challenges posed by the current solar net metering system. Although the PML-N government has supported solarisation since 2017, resulting in 113,000 net meter connections, Leghari emphasized the need to reassess the policy’s impact.

Leghari clarified that the government supports continuing solar net metering and promoting renewable energy while taking steps to combat power theft. The government is studying the effects of increased rooftop solar electricity on household electricity prices and the overall power sector. This assessment includes comparing Pakistan’s situation with other countries like Australia.

Despite advocating for the continuation of the solar metering policy, Leghari stated that a review might be necessary. He noted a recent 8% reduction in electricity demand, with a demand of 19,000MW and Discos generating over 16,500MW. Additionally, there was over 4,000MW of “economic loadshedding” in high-loss feeders.

Leghari also emphasized the importance of reducing power sector losses and intensifying the anti-power theft drive nationwide. He acknowledged existing billing issues in many Discos and proposed forming new independent boards to manage the power firms without ministry intervention.

Looking ahead, Leghari expressed optimism that Pakistan could overcome its power crisis within six to seven years by completing various hydroelectric power generation projects.

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