Government Plans to Revise Solar Net Metering Payback Period Amid Surplus Power Concerns
The Power Division of Pakistan is preparing to present a revised solar net metering policy to the federal cabinet within the next two weeks, aiming to extend the payback period from 1.5 years to 2–3 years. The move is designed to address excessive financial returns for rooftop solar users and help manage the growing electricity surplus on the national grid.
Speaking on Thursday, Federal Power Minister Awais Leghari clarified that the new policy will not reduce solar tariffs, but it is intended to prevent future electricity price hikes across the board. He emphasized that existing solar net metering consumers will not be penalized, but acknowledged that the current return rates are financially unsustainable in the long term.
☀️ Solar Users May See Longer Return on Investment
Under the current structure, rooftop solar panel users can recover their investment in just 1.5 years—one of the fastest payback periods in the region. However, the proposed changes aim to align returns with broader energy and fiscal realities, particularly in light of rising power generation capacity and stagnant demand growth.
🔌 Surplus Power Strategy in Progress
Minister Leghari also revealed that the government is in discussions with the International Monetary Fund (IMF) to supply between 5,000–6,000 megawatts of surplus electricity at marginal cost to energy-intensive industries. Target sectors include data centers, cryptocurrency mining, and large-scale manufacturing, as part of a strategy to optimize excess generation without burdening domestic consumers.
⚖️ Power Distribution Reforms and Duty Collection
In a related update, Leghari confirmed that the federal government has formally notified provinces that power distribution companies (Discos) will no longer collect electricity duty on behalf of provincial authorities. So far, only one province has responded to the directive. Once all replies are received, the matter will be escalated to the cabinet for a final resolution.
📉 Technical and Billing Losses Show Significant Drop
Highlighting operational improvements, the minister shared that losses due to poor billing and technical inefficiencies within Discos have fallen from Rs. 591 billion in FY24 to Rs. 399 billion in FY25. The drop signals ongoing efforts to improve power sector performance, enhance transparency, and reduce the financial burden on both consumers and the national budget.
The proposed changes to net metering are part of a broader reform agenda focused on sustainability, affordability, and smart energy management in Pakistan. As the cabinet reviews the recommendations, industry stakeholders and solar adopters will be watching closely for further developments.
