Roof solar net metering shifts Rs159bn burden on grid consumers
1. Number of roof solar net meeting consumers have increased to 283,000 from 226,440 registered in October 2024
ISLAMABAD: The rooftop solar net metering facility has placed an additional financial burden of Rs159 billion on grid consumers through a tariff hike of Rs1.5 per unit.
According to the latest data from the Power Division, the net metering system has negatively impacted consumers relying solely on grid electricity. Net metering users are not contributing to grid storage costs or capacity payments for power plants that remain idle due to the increased adoption of solar energy.
The number of rooftop solar net metering consumers has surged from 226,440 in October 2024 to 283,000, adding approximately 800MW of solar capacity in the past four months. This expansion has intensified the financial strain on those who depend entirely on the grid.
Senior officials from the Power Division warn that if a revised policy is not implemented promptly, the financial burden stemming from the current rooftop solar policy could soar to Rs503 billion over the next decade, disproportionately impacting lower-income consumers.
Official documents indicate that high-income households in upscale areas of major cities have benefited significantly from declining solar technology costs. These users have reduced their monthly electricity expenses by 35%, while shifting a Rs103 billion burden onto consumers who have not adopted rooftop solar systems.
In 2021, total solar net metering connections accounted for 321MW, a figure that has skyrocketed to 3,277MW in just three years. Projections suggest this capacity could rise to 12,377MW by 2034.
A substantial number of consumers from Lahore, Karachi, Islamabad, Gujranwala, Faisalabad, Multan, Peshawar, Sialkot, and Rawalpindi have already joined the net metering system. However, despite this growth, net metering users still represent just 0.6% of the total 37 million electricity consumers.
To address this imbalance, the government is working to reduce the buyback tariff for net metering consumers from Rs27 per unit to Rs8-9 per unit through the enforcement of gross metering. Under this system, the national grid will purchase rooftop solar electricity at Rs8-9 per unit instead of the current Rs27 per unit, potentially replacing net metering altogether.
A top official from the Energy Ministry stated, "Authorities aim to introduce a policy where solar consumers recover their rooftop solar investment in four to five years, rather than the current two-year period."
Gross metering operates differently from net metering. In this system, solar energy generated by consumers is exported directly to the grid rather than being used for self-consumption. Two separate meters measure exported and imported electricity, with imported units being priced higher than exported ones, ensuring consumers still pay a portion of their electricity bills.
This shift in policy is expected to restructure the financial dynamics of solar adoption and grid reliance, aiming for a more balanced and sustainable energy model.
