The federal cabinet has postponed the approval of the net metering policy for solar energy users, halting the imposition of additional taxes on solar energy consumers.  During the cabinet meeting, the Prime Minister instructed Energy Minister Owais Leghari to review the policy, citing concerns over its impact on clean energy adoption. The Economic Coordination Committee (ECC) recently approved amendments to the net metering regulations, reducing the buyback rate for solar-generated electricity from Rs. 27 to Rs. 10 per unit. 

This decision aimed to alleviate financial pressure on grid consumers but sparked backlash from solar users and industry stakeholders. The revised net metering policy for solar energy users also proposed higher electricity rates for solar consumers, with off-peak rates set at Rs. 42 per unit and peak-hour rates at Rs. 48 per unit, alongside an 18% tax and additional duties.

The government clarified that the revised framework would not apply to existing net-metering consumers until their seven-year agreements expire.  However, the policy’s implications have raised concerns about discouraging solar energy adoption, particularly in urban areas where 80% of net-metering users reside.

Credit: Independent News Pakistan (INP)