Government postpones decision on net metering policy

ISLAMABAD: News reported on Wednesday that the federal cabinet has delayed approving the net metering policy for solar energy users, preventing the immediate imposition of additional taxes on solar energy consumers.

During the cabinet meeting, the Prime Minister directed Energy Minister Owais Leghari to review the policy, expressing concerns about its impact on clean energy adoption.

The Economic Coordination Committee (ECC) recently amended the net metering regulations, lowering the buyback rate for solar-generated electricity from Rs. 27 to Rs. 10 per unit.

The government made this decision to ease financial pressure on grid consumers, but solar users and industry stakeholders strongly criticized it.

The government proposed a revised net metering policy for solar energy users, setting off-peak electricity rates at Rs. 42 per unit and peak-hour rates at Rs. 48 per unit, along with an 18% tax and additional duties.

The government clarified that existing net-metering consumers would remain unaffected by the revised framework until their seven-year agreements expire.

However, the policy’s implications have sparked concerns about hindering solar energy adoption, especially in urban areas, where 80% of net-metering users live.

The Pakistan Muslim League (N) has historically promoted solar energy to provide relief to citizens, pledging support for renewable energy since 2015.

Punjab Chief Minister Maryam Nawaz recently launched a major solar initiative to support consumers using up to 300 units. However, within a year, the government’s shift from promoting to discouraging solar energy adoption has raised doubts about its commitment to renewable energy.

The relevant authorities are thoroughly reviewing the net metering policy for solar energy users. They plan to conduct extensive consultations and deliberations to refine the framework meticulously. Their ultimate goal is to balance supporting clean energy adoption while addressing stakeholders’ concerns.