Net metering policy: What solar system users need to know?

ISLAMABAD: The Economic Coordination Committee (ECC) of the federal cabinet has approved a set of amendments to the existing net-metering regulations aimed at reducing the growing financial burden on grid consumers.

The decision comes in light of a significant increase in the number of solar net-metering consumers, with associated financial implications for grid consumers, the statement added.

As part of the approved changes, the ECC has revised the buyback rate from the National Average Power Purchase Price (NAPP) to Rs 10 per unit.

Renowned energy and environmental expert, Dr. Busharat Hasan, has criticized the government’s net metering policy on ARY News’ programme “Reporters.” He argued that the policy has led to a significant financial burden on the national treasury.

Dr. Hasan pointed out that people have invested heavily in solar systems due to the government’s failure to provide reliable electricity, frequent load shedding, and increasing electricity prices. He questioned the government’s decision to allow the installation of numerous power plants, signing long-term contracts, and providing capacity payments, which he believes is a significant loss for the national exchequer.

The government claims that the net metering policy has led to an increase in tariffs for other electricity consumers. However, Dr. Hasan disagrees, stating that the government’s failure to prevent electricity theft and providing free electricity to WAPDA employees are the real reasons for the increased burden on other consumers.

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According to Dr. Hasan, there are currently 283,000 consumers generating 4,300 megawatts of electricity through solar systems. He suggests that these consumers should start using batteries to store excess energy.

Dr. Hasan said that solar systems are here to stay and are the future of Pakistan’s energy sector due to their fuel-free nature

The government has announced that the new net metering policy will not affect existing consumers but will apply to new consumers.

The government maintained that he need for a new net metering policy arose as net metering customers were placing an additional burden on other general electricity consumers.