NEPRA revisits solar units' buyback rate to fix at Rs 10

LAHORE: The Nepra is working over a major revision to the solar net metering rates by reducing the buyback rate from Rs. 23 per unit to proposed Rs. 10, sources at the Power Division said.

In the next phase it will also be considered to erase the buyback rates mechanism and the consumer will be paid nothing for the solar power from the system, according to sources. “The consumers who generate solar power will be bound to use 100% electricity.”

Sources said that the consumers, who generate solar power, being paid Rs. 125 billion rupees

It follows concerns that the current policy is pushing up electricity costs for consumers on the grid. Officials say the financial strain has grown sharply as rooftop solar installations surge across the country.

“Payments to the IPPs becoming difficult for the government and the solar system changing into an alternate of the Independent Power Producers (IPPs)”, sources added.

The power consumption in the grid going down, in FY2024 alone, grid sales fell by 3.2 billion units, resulting in Rs. 101 billion revenue loss to power distribution companies.

This gap translated into a tariff increase of nearly Rs. 1 per unit for traditional electricity users.

Power Division projections show the impact widening rapidly over the next decade.

The situation has triggered intervention from the prime minister, who on October 22 directed the Power Division and Nepra to re-evaluate the buyback tariff and its broader impact before announcing any reforms.