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Govt Reverses Plan to End Solar Net Metering in Pakistan

PM Shehbaz Sharif Blocks Proposal to Slash Solar Net-Metering Rates

ISLAMABAD – In a move welcomed by clean energy advocates and homeowners, Prime Minister Shehbaz Sharif has once again halted a proposal to revise Pakistan’s solar net-metering policy, even before it was officially submitted to the federal cabinet.

According to a senior official quoted by Dawn, the Power Division was preparing a public awareness campaignβ€”together with the Ministry of Informationβ€”before presenting the revised policy. However, a directive from the PM’s Office ordered an immediate stop to the effort.

β€œThis is the third time we’ve been told to stand down,” the official confirmed.


πŸ”„ What Was Being Proposed?

The now-shelved proposal aimed to cut the buyback rate for solar energy supplied to the national grid under the net-metering policy. Key highlights included:

  • Reducing the buyback rate from Rs. 27 per unit to Rs. 11.33 per unit, nearly a 60% decrease

  • Extending the investment recovery period from 1.5 years to 2–3 years

These changes were initially approved by the Economic Coordination Committee (ECC) but previously rejected by the federal cabinet after public backlash.


🏑 Relief for Solar Energy Users

With the proposed changes now blocked, solar panel owners and green energy advocates can breathe a sigh of relief. The current policy remains in effect, which means:

βœ… Rs. 27 per unit will continue to be paid for excess electricity fed into the grid
βœ… Faster return on investment for residential and commercial solar systems
βœ… Continued encouragement for renewable energy adoption across Pakistan


⚑ Policy Outlook: What’s Next?

Earlier this month, Federal Power Minister Awais Leghari stated that he planned to revisit the policy by consulting key stakeholders. However, any attempt to lower net-metering incentives is expected to meet strong resistance from the public and green energy sector.

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