Ahmed Chinoy condemns proposed cuts in net metering rates for solar eectricity in Pakistan

Chairman PCMA Ahmed Chinoy H.I, S.I strongly condemn the recent announcements regarding the proposed cuts in net metering rates for solar electricity in Pakistan.

This decision is a significant setback for the country’s transition towards clean and sustainable energy. It directly undermines the progress made in encouraging solar adoption among households and businesses, threatening energy security, environmental sustainability, and economic viability for thousands of solar consumers.

The net metering policy has been instrumental in enabling consumers to generate their own clean energy and contribute excess power to the national grid, reducing reliance on costly fossil fuel-based electricity. The proposed reduction in net metering rates will discourage investment in solar energy, slowing down the much-needed shift towards renewable sources at a time when Pakistan is already struggling with an energy crisis and escalating power tariffs.

Key Concerns:

1.Disincentivizing Renewable Energy: Lowering net metering rates will discourage households and businesses from adopting solar power, reversing the momentum towards a greener and self-reliant energy future.

2.Increased Financial Burden on Consumers: Many Pakistanis have invested heavily in solar power solutions under the expectation of fair compensation for surplus energy. Reducing net metering rates will negatively impact their return on investment.

3.Contradiction to Climate Commitments: Pakistan, one of the most climate-vulnerable nations, has pledged to increase its reliance on renewable energy. Cutting net metering rates contradicts the country’s commitments to reducing carbon emissions.

4.Strain on the National Grid: Encouraging solar adoption helps alleviate pressure on the national grid and reduces power shortages. By making solar less attractive, this policy risks worsening Pakistan’s energy crisis.

Mr Chinoy urged the government and relevant authorities, including NEPRA and the Ministry of Energy, to reconsider this ill-advised move and uphold policies that support renewable energy growth. The focus should be on incentivizing rather than discouraging solar energy adoption.

We also call upon the public, energy experts, and environmental advocates to voice their opposition to these cuts and stand in support of a fair and sustainable energy transition.

Pakistan cannot afford to take steps backward in its pursuit of energy independence and climate resilience. We demand an immediate reversal of this policy and a reaffirmation of the government’s commitment to a greener future for all Pakistanis.