New Solar Policy? Government Proposes Costlier Electricity Units for Solar Users

Pakistan is considering a new solar policy that would encourage battery-based solar users to sell electricity to the national grid during evening peak hours for higher payments

WEBDESK – ABDUL REHMAN SHAHEER – MEDIABITES NEWS

Government Introduces New Proposal for Solar Consumers

The federal government is considering a new energy policy aimed at encouraging battery-based solar users to supply electricity to the national grid during evening peak hours. The proposal comes after the introduction of the net billing system earlier this year, which significantly changed the financial benefits previously offered under net metering.

Under the proposed Time-of-Use (TOU) framework, consumers with battery storage systems could receive an additional Rs. 18 to Rs. 22 per unit for electricity supplied to distribution companies during peak evening demand.

Why the Policy Is Being Proposed?

Pakistan’s electricity demand often exceeds 26,000 megawatts between 5 pm and 10 pm, when solar generation falls to zero after sunset. To meet this demand, the government relies on costly furnace oil and LNG-based power plants.

Officials believe that purchasing electricity stored in household batteries could reduce dependence on expensive power generation while improving grid stability during peak hours.

Why Solar Users Are Avoiding Net Billing?

Since the replacement of net metering with net billing, many consumers have shifted towards hybrid solar systems with lithium battery storage instead of exporting surplus electricity to the grid.

Under net billing, consumers sell surplus electricity for only Rs. 11 to Rs. 13 per unit, while purchasing electricity from the grid during nighttime costs Rs. 45 to Rs. 60 per unit, including taxes and surcharges. This pricing gap has extended the return on investment for solar systems, making battery storage a more attractive option.

Experts Stress Need for Attractive Incentives:

Experts believe the proposed policy could benefit both consumers and the national grid if implemented effectively. However, they warn that success will depend on offering competitive buy-back rates, ensuring transparent payments, and upgrading distribution companies with smart metering and two-way digital infrastructure.

Without adequate financial incentives and public confidence, many consumers are expected to continue using stored solar energy for their own households rather than selling it back to the grid. If a balanced framework is introduced, the policy could help reduce energy costs, improve grid efficiency, and strengthen Pakistan’s transition towards cleaner and more sustainable energy.