Federal government is ending solar net metering policy

The government has announced revisions to Pakistan’s solar net metering policy to address financial imbalances affecting nearly 40 million electricity consumers. Introduced in 2018 under the PMLN government, the policy initially aimed to promote renewable energy by allowing consumers to sell excess electricity to the grid.

While early adopters benefited, the growing number of net metering users rising from 224000 in October 2024 to 283000 in March 2025 has shifted a Rs 159 billion burden onto non-solar consumers.

To balance costs, the government is reducing the buyback tariff from Rs 27 per unit to Rs 8 to 9 per unit, ensuring equitable cost-sharing.Officials emphasize that net metering is not being abolished but reformed to maintain investor confidence while preventing undue subsidies for wealthier consumers.

The government ensured commitment to sustainable energy policies benefiting all Pakistanis.