The Pakistani government’s recent decision to transition from net metering to gross metering has sent shockwaves through the solar energy sector. This policy shift, which slashes the buyback rate for surplus solar electricity from Rs 27 to Rs 10 per unit, is being framed as a necessary recalibration to balance the grid’s financial burden. However, a closer look reveals that this move disproportionately harms solar consumers while benefiting traditional energy stakeholders.
For years, net metering has been a cornerstone of Pakistan’s renewable energy strategy, empowering over 286,000 consumers to generate their own electricity and reduce reliance on the grid. Under this system, households and businesses could offset their nighttime consumption by exporting excess solar energy during the day, effectively balancing their electricity costs. A typical middle-class household with a 10kW solar system, for instance, could generate 1,000 units monthly, consume 650 directly, and export 350 to the grid, significantly reducing their electricity bills.
The shift to gross metering, however, disrupts this equilibrium. Under the new policy, solar consumers are forced to sell all their generated electricity to the grid at a meager Rs 10 per unit, only to buy it back at the inflated grid rate of Rs 50 per unit. This means that a household generating 500 units of solar energy would earn just Rs 5,000 from the grid but still have to pay Rs 50,000 for their 1,000-unit consumption, resulting in a net bill of Rs 45,000—nearly double what they would have paid under net metering.
Energy Minister Awais Leghari has defended the policy, citing a Rs 150 billion burden on non-solar consumers who allegedly subsidize net metering users. However, former Finance Minister Miftah Ismail has challenged this claim, pointing out that solar purchases amounted to just Rs 34.3 billion in bill reductions last year—a fraction of the Rs 150 billion figure. Ismail also highlighted that transmission and distribution (T&D) losses, which totaled 24,020 GWh, dwarf solar’s 1,269 GWh contribution.
The real issue lies in Pakistan’s skewed energy mix, which remains heavily reliant on thermal power. Thermal plants account for 62.24% of installed capacity and 49.01% of electricity generation, while renewables contribute a mere 4.75%. Instead of addressing this imbalance, the government’s move to gross metering discourages solar adoption and reinforces dependence on costly fossil fuel imports.
This policy shift also ignores the technical benefits of solar inverters, which deliver synchronized pure sine waves, reducing transformer stress and improving grid stability. By dismantling net metering, the government is not only penalizing legitimate solar users but also stifling innovation and energy independence.
The shift to gross metering is a strategic blunder that prioritizes the interests of DISCOs, thermal power plants, and fossil fuel importers over those of consumers. If Pakistan is to achieve its Vision 2025 renewable energy targets, this policy must be reversed.
