Pakistan plans to significantly cut the rate it pays households for solar power under a new energy policy that replaces the current net-metering system with a gross-metering model, according to a report by The News.
The revised policy proposes a buyback rate of Rs11.33 per unit for electricity generated by rooftop solar users, roughly one-third of the base tariff of Rs34 per unit determined by the National Electric Power Regulatory Authority (Nepra) for the 2025-26 fiscal year.
Under gross metering, all electricity generated by a solar system is sold to the national grid, and all consumption is bought from the grid at standard rates. This differs from the existing net-metering system, where solar users are billed only for the difference between what they consume and what they generate.
The Power Division finalised the proposal after consulting stakeholders on the prime minister’s direction. The summary will be presented to the federal cabinet soon and could be revised slightly. Officials say the final buyback rate may rise to Rs13–14 per unit after cabinet review.
Power Minister Sardar Awais Leghari confirmed that the new summary includes improved terms following the consultative process.
However, existing solar users on net-metering contracts will continue to receive Rs27 per unit until their agreements expire, creating a two-tiered system. The move is expected to generate public backlash over what critics call preferential treatment.
The Power Division says the net-metering system has already placed a Rs103 billion burden on regular grid users. Officials argue that switching to gross metering will distribute costs more fairly. The government aims to add 8,500 MW of solar energy to the grid under this new policy in its upcoming Indicative Generation Capacity Expansion Plan.
The shift mirrors practices in the gas sector, where newer connections are charged higher rates than legacy users. Similar disparities could spark controversy as Pakistan continues its energy sector reforms.
