ISLAMABAD: In a major policy shift, the government has slashed the buyback rate for electricity generated by rooftop solar panels to one-third of the base tariff, moving from net metering to gross metering for new installations. Under the revised framework, solar users will now sell excess power to the grid at Rs. 11.33 per unit—down from the previous Rs. 27 per unit—starting FY26.
The National Electric Power Regulatory Authority (NEPRA) has set the base tariff at Rs. 34 per unit for FY26, making the new buyback rate Rs. 11.33 (one-third of the base rate). Existing solar users under net metering will continue receiving Rs. 27 per unit until their contracts expire, but new installations will operate under gross metering, where all generated power is sold to the grid at the reduced rate.
Power Division officials argue that net metering imposed a Rs. 103 billion burden on conventional electricity consumers, adding Re. 0.90 per unit to their bills last year. The shift to gross metering aims to reduce cross-subsidies and stabilize the power sector. However, critics warn this move could discourage solar adoption and create a two-tier system, favoring early adopters over new consumers.
The decision has sparked debate, with some stakeholders calling it unfair and anti-renewable energy. The policy mirrors gas sector disparities, where new connections are charged RLNG rates, while older consumers enjoy subsidized tariffs. The Power Division plans to present a revised summary to the federal cabinet, possibly increasing the buyback rate to Rs. 13-14 per unit, but the final decision rests with Prime Minister Shehbaz Sharif.
Despite the controversy, the government aims to add 8,500 MW of solar power under the new policy, supplementing the existing 6,500 MW from net metering. The Indicative Generation Capacity Expansion Plan (IGCEP) will soon be submitted to NEPRA for approval, outlining Pakistan’s renewable energy roadmap.
While authorities defend the policy as a fiscal necessity, solar advocates fear it will stifle green energy growth. With electricity prices soaring and climate challenges mounting, the government must balance economic stability with sustainable energy transition. Will this decision stabilize the grid or derail Pakistan’s solar potential? The coming months will reveal the true impact.