The government is considering a revision of the buyback rates for net metering electricity, aiming to reduce it from the current Rs 21 per unit to Rs 11 per unit, according to sources familiar with the matter speaking to Business Recorder.
The surge in net metering installations nationwide has disrupted the government’s plan to cover capacity charges from consumers, as wealthier segments opt for net metering, the sources explained.
“There’s a perception within the Power Division that consumers have already taken full advantage of available benefits, leading to adverse effects on the country’s power sector,” they added.
The government aims to encourage solar adoption but deems the current buyback rates of Rs 12-22 per unit impractical, the sources continued. At the current rates, consumers recover their investment in just 18 months. The proposed adjustment would reduce the buyback rate to Rs 11 or Rs 11.50 per unit, extending the recovery period to ten years.
The Power Division argues that consumers install solar systems for self-consumption, suggesting that rates for additional generation should align with the affordability of distribution companies (Discos).
As of March 31, 2024, 6000 MW of solar plates have been imported, with 3000 MW of electricity generated through solarization.
In 2022, the National Electric Power Regulatory Authority (NEPRA) proposed amending the Alternative & Renewable Energy Distributed Generation and Net Metering Regulations, 2015. However, public opposition, citing the efficiency of net metering and its benefits, led NEPRA to reconsider, ultimately deciding not to amend the regulations.
