Pakistan’s Power Division has started working on modifications to the current net metering regulations in an effort to balance the advantages for solar energy users with the cost to other electricity customers. This is a key step toward amending the laws.
Sending net metering power to the national pool and imposing capacity charges on net metering customers are two of the suggested adjustments that will be submitted to the National Electric Power Regulatory Authority (NEPRA) in July.
A 50% decrease in the net metering buyback rate is one of the significant modifications that are being considered. With this decrease, the existing three-year payback period for solar power investments will now last seven years.
The Power Division’s sources suggest that this modification is essential to preserving the financial balance in the energy industry. The National Grid’s current net metering share is 2000 MW. Over the previous year, the number of solar consumers increased significantly from 55,000 to 120,000.
Other consumers now bear an extra cost of Rs 2 per unit as a result of big users leaving the traditional grid owing to net metering. It is anticipated that if the current rate continues, this issue will get worse, with estimates pointing to a rise of up to Rs 350 billion the following year.
