Solar Net Metering: Energy minister clarifies govt's policy

ISLAMABAD: In a recent development regarding solar net metering, Federal Minister for Energy clarified that discussions with the International Monetary Fund (IMF) for a ‘new bailout program’ did not involve the termination of the solar net metering, ARY News reported on Tuesday.

During his speech in the senate, the Federal Minister for Energy Awais Leghari, stated that the solar net metering was initiated during the tenure of former Prime Minister Shahid Khaqan Abbasi, with more than 100 percent increase in the net metering during the last two years.

Despite government efforts to address Pakistan’s mounting credit with the IMF, Leghari emphasized that the termination of solar net metering was not brought up, as the Pakistani government is not currently in a position to make such demands to the IMF.

The Energy Minister further stated that 1500 MW of electricity is currently being generated from private solar systems. He underscored the decreasing prices of solar systems in the international market, expressing that the investors shouldn’t discourage to invest in solar systems.

Expressing optimism, he announced his plans to bring reforms in the power distribution companies, along with the energy sector in the next five years to prevent the escalation of revolving debt within the sector.

READ: Govt hints at revising solar net metering policy

Prior to the energy minister statement, the Senator of Pakistan Peoples’ Party (PPP) Quratulain highlighted that the financially burdened citizens are not afford electricity or solar due to the anti-people policies of the ruling government.

Earlier to this, the federal government has announced to revise Pakistan’s solar net metering policy, emphasising reduction of losses in the power sector.

Addressing a press conference, Federal Minister for Energy Sardar Awais Ahmad Leghari pointed out that the country was facing an issue of solar net metering these days.

“Initially, citizens installing solar systems would recover their investment in three years, but now they are recovering their investment in just one to one and a half years,” he said.

The minister said that the PML-N-led government had encouraged solarisation in 2017 and currently, 113,000 connections were present on net meters.

Awais Leghari clarified that while the government is willing to review the solar net metering policy if needed, it supports the continuation of the scheme. “We will also take effective steps to eliminate the menace of power theft to reduce the financial burden on the national exchequer,” he added.