Federal Govt ends Net Metering
Federal Govt ends Net Metering. Transition from net metering to gross metering. The government plans to implement gross metering for solar consumers by abolishing the traditional net metering system. Under this, consumers will no longer be able to consume the electricity they generate themselves, but will have to sell it to the National Grid at a fixed rate. This proposal will be sent to the federal cabinet after being finalized by Nepra.
Significant reduction in buyback rate
Currently, consumers are paid Rs 27 per unit on net metering. According to the new proposal, this rate will be reduced to Rs 11.33, a reduction of about 60 percent
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Aim for fair burden sharing
The government’s position is that the purchase costs incurred through net metering increase dependence on other consumers. Last year, a burden of Rs 159 billion was shifted to grade consumers. Keeping this in mind, efforts are being made to share the burden equally.
Increase in permanent solar capacity
According to the new policy, the government is targeting to achieve an additional 8,500 MW of solar generation
This is likely to boost the renewable energy sector in the country.
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Protection of existing contracts
The new terms will not apply to existing net metering customers. Customers who are in the current contract period (7 or 5 years) will remain on the new net metering concessional rates.
Timely consultation and stakeholder engagement
In March, the government refrained from immediately implementing the new regulations and decided to conduct further deliberations without consulting stakeholders in between. The Ministry of Power has issued instructions to hold detailed discussions with consumers, industry, and research experts.
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Technical and financial challenges
The rapid installation of solar panels has increased pressure on the grid. Transformer capacity limitations, grid stability losses, and technical difficulties have come to the fore. Because of this, solar operators have defended that solar provided energy to the consumer at a low cost, but now the government wants to maintain financial and technical balance.
Industry and consumer concerns
The Pakistan Solar Association (PSA) and the Renewable Energy Association have expressed concerns that the end of net metering could lead to a significant reduction in consumer savings and industries. Some consumers are looking for off-grid or hybrid battery solutions in response.
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Summary
- The new system of gross metering offers a complete sale of electricity generated by consumers and a separate purchasing model.
- The direct financial benefit to consumers from the rate reduction will be limited, but the burden on general consumers will be reduced.
- Existing consumers will remain protected, and the new policy will be for a limited time.
- Extensive consultation with stakeholders is an important part of the government’s strategy.
- The technical and financial challenges aim to maintain grid sustainability.
- The concerns of the industry and the public are being taken seriously.
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