PM Shehbaz Orders Urgent Review of Proposed Solar Net Metering Rate Cut
Oct 28, 2025
Prime Minister Shehbaz Sharif has directed authorities to urgently review the proposal to reduce the solar net metering buyback rate, as the federal government considers a major adjustment to the tariff policy.
According to reports, the Power Division has proposed cutting the rate paid to consumers who sell excess solar electricity back to the grid — from Rs. 22 per unit to around Rs. 11.30 per unit. The proposal cites the growing financial pressure on non-solar consumers.
During a high-level meeting held on October 22, the Prime Minister instructed the Power Division and NEPRA (National Electric Power Regulatory Authority) to carefully assess the proposed rate, verify its financial impact, and ensure that any policy changes are implemented transparently and fairly.
The government is also reviewing existing net metering contracts to see whether current buyback rates can be adjusted without breaching agreements. Meanwhile, new standardized contracts are being drafted under a Net Billing framework for future customers.
Officials have noted that the rapid expansion of rooftop solar systems has reduced grid electricity sales by 3.2 billion kWh in FY2024, which reportedly added Rs. 101 billion in costs for other users and increased average tariffs by Rs. 0.9 per unit. Projections suggest that by FY2034, this reduction could reach 18.8 billion kWh, potentially adding Rs. 545 billion in additional costs.
The country’s long-term power strategy anticipates up to 8,000 MW of net metering capacity by 2034 — a development that, according to officials, could challenge existing least-cost expansion plans. Grid operators have also reported operational strain during peak daytime solar generation, sometimes forcing the restoration of high-loss feeders to balance system stability.
This latest review follows a previously shelved proposal to set the buyback rate at Rs. 10 per unit, which was postponed after opposition within the federal cabinet. Prime Minister Shehbaz has now ordered fresh consultations and a clear public communication plan to explain any upcoming changes in the solar policy.
