Revised Buyback Tariff for Solar Users
The federal government is set to reduce the buyback rate for excess electricity from Rs. 27 per unit to Rs. 8-9 per unit, while simultaneously increasing grid electricity prices for solar users. This move aims to balance the financial burden across all electricity consumers.
Rising Number of Net Metering Users
The number of solar net metering users has surged from 224,000 in October 2024 to 283,000 in March 2025, leading to a Rs. 159 billion burden on non-solar consumers. This policy has disproportionately benefited wealthier households, while nearly 40 million consumers are paying an extra Rs. 1.5 per unit to cover these costs.
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Impact on Solar Investment
Despite the tariff adjustments, solar energy remains a viable investment. The payback period for solar panels will extend from 2 years to 4-5 years, ensuring continued adoption without excessive subsidies.
Government’s Commitment to Fair Tariff Policies
The solar net metering policy, introduced in 2018 by the PML-N government under Mian Nawaz Sharif and Power Minister Awais Leghari, was designed to promote renewable energy and reduce reliance on fossil fuels. While the government supports solar energy adoption, it seeks to revise tariffs for fair cost distribution and to ease the financial burden on the majority of consumers.
