Solar association rejects lower solar net metering rates

LAHORE: The Solar Association has strongly opposed the government’s decision to reduce solar net metering rates, calling it a detrimental move for the solar sector, ARY News reported on Friday.

During a press conference, the chairman solar association, Adil Mahmood, criticized the government’s decision to reduce solar rates, stating that it undermines years of investment and efforts to promote solar energy in Pakistan.

Adil Mahmood highlighted that the government, including the President and Prime Minister, had previously encouraged solar investments but has now taken a “U-turn” on their commitments.

“For the past two to three years, they have been appealing for solar investments, and now they are offering electricity at Rs54 per unit while expecting solar providers to sell at Rs10 per unit,” he remarked.

The chairman emphasised that this policy shift could severely impact billions of rupees invested in the solar sector.

He also expressed disappointment over the lack of consultation with stakeholders and making the government’s decision during the formulation of the solar policy of solar rates reduction. “We were not taken into confidence while drafting this policy,” he added.

The Solar Association has called for the restoration of the previous rates instead of reducing electricity prices through solar energy.

Adil Mahmood urged the government to reconsider its decision to ensure the sustainability of the solar energy sector and protect the investments made by stakeholders.

This development has sparked a debate on the future of renewable energy policies in Pakistan, with industry experts and investors closely monitoring the government’s next steps.

The Solar Association remains firm in its stance, advocating for a balanced approach that supports both affordability and investment growth in the solar energy sector.

Earlier, Solar panel prices in Pakistan witnessed a major decline following substantial changes to the federal government’s net metering policy.

The price of solar panels has decreased by as much as Rs175,000 in local markets, offering a noticeable cost reduction for consumers. Depending on the market, the installation costs for solar power systems have dropped by Rs35,000 to Rs175,000.

Currently, a 5 kW solar system is priced between Rs5 lac and Rs5.5 lac, while a 7 kW system is available for approximately Rs6 lac. Larger systems, such as a 10 kW setup, are priced at over Rs8 lac, and a 12-15 kW system now costs upwards of Rs1.2 million.

These price fluctuations have occurred in response to the government’s decision to reduce the buyback rate for solar net metering to Rs10 per unit and to implement net billing for new consumers.

The policy adjustments aim to mitigate the rising costs of grid electricity, influencing both solar system prices and the overall dynamics of renewable energy adoption in the country.