ISLAMABAD: In a major policy shift, the cabinet’s Economic Coordination Committee (ECC) has revised the buyback tariff of solar rooftop consumers to Rs10 per unit from Rs27 per unit.
The development came as the ECC met under the chairmanship of Finance Minister Muhammad Aurangzeb, and approved a set of amendments to the existing net-metering regulations aimed at reducing the growing financial burden on grid consumers, according to an official statement issued by the Finance Division on Thursday.
The decision comes in light of a significant increase in the number of solar net-metering consumers, with associated financial implications for grid consumers, it added.
“As part of the approved changes, the ECC has revised the buyback rate from the National Average Power Purchase Price (NAPP) to Rs10 per unit.”
It was clarified, however, that the revised framework will not apply to existing net-metered consumers “who have a valid license, concurrence, or agreement under the Nepra (Alternative & Renewable Energy) Distributed Generation and Net Metering Regulations, 2015”.
“Any such agreements will remain effective until the expiration of the license or agreement, whichever occurs first. This ensures that the rights and obligations of these consumers, including agreed-upon rates, will continue as per the existing terms,” read the statement.
Furthermore, the committee approved the proposal, subject to the ratification of cabinet, to allow the National Electric Power Regulatory Authority (Nepra) to revise this buyback rate periodically, ensuring that the framework remains flexible and aligned with evolving market conditions.
Additionally, the ECC also approved an update to the settlement mechanism. Under the new structure, imported and exported units will be treated separately for billing purposes.
The exported units will be purchased at the revised buyback rate of Rs10 per unit, while the imported units will be billed at the applicable peak/off-peak rates, inclusive of taxes and surcharges, during the monthly billing cycle.
The ECC also authorised the Power Division to issue proposed guidelines, subject to cabinet’s ratification, to Nepra for incorporation into the applicable regulatory framework, ensuring clarity and consistency in the implementation of these amendments.
The decision follows extensive discussions on the growing impact of solar net-metering on the national power grid.
The Power Division highlighted the pressing need for regulatory adjustments, citing a record decline in solar panel prices that has led to a sharp increase in the number of solar net-metering consumers, the statement said.
As of December 2024, solar net-metering consumers had transferred a burden of Rs159 billion to grid consumers, a figure expected to rise to Rs4,240 billion by 2034 without timely amendments.
