PM Shehbaz Orders Immediate Review of Solar Net Metering Rate Reduction – November Update
Islamabad, November 2025: Prime Minister Shehbaz Sharif has directed the Power Division and the National Electric Power Regulatory Authority (NEPRA) to urgently review the proposal to cut the solar net metering buyback rate by almost half. The move has sparked major debate among solar users and energy experts across Pakistan.
Proposed Rate Cut
The Power Division has suggested reducing the buyback rate — the amount paid to consumers who sell extra solar power to the national grid — from Rs. 22 per unit to around Rs. 11.30. Officials argue that the current rate places a financial strain on non-solar electricity users.
The directive was issued during a high-level meeting held on October 22, 2025, where the Prime Minister instructed authorities to assess the financial impact of the proposed rate and ensure fairness for all consumers before final approval.
Review of Existing Contracts
The government is also considering whether existing net metering contracts can be legally adjusted without violating prior agreements. At the same time, new standard contracts are being drafted under a Net Billing framework that will apply to future customers joining the solar program.
Financial Impact on the Power Sector
According to official data, the rapid growth of rooftop solar systems has reduced grid power sales by 3.2 billion kilowatt-hours (kWh) in FY2024, adding around Rs. 101 billion in extra costs for other electricity consumers.
Projections show that by FY2034, grid sales could decline by 18.8 billion kWh, potentially increasing costs by over Rs. 545 billion if no reforms are introduced
Operational Challenges
Energy officials have also reported that the growing number of solar users sometimes causes grid instability during peak daylight hours, forcing operators to restore high-loss feeders to balance the system.
Next Steps
An earlier plan to fix the buyback rate at Rs. 10 per unit was put on hold due to cabinet objections. Now, Prime Minister Shehbaz Sharif has ordered a fresh consultation process and a clear public awareness campaign to explain the upcoming changes and address public concerns.
Conclusion
The government’s review aims to create a balanced and sustainable solar policy that supports renewable energy growth while protecting the financial stability of Pakistan’s power sector. The final decision on the revised rate is expected soon after NEPRA’s detailed evaluation.
