The government’s proposed cut in solar net metering buyback rate from Rs27 to Rs11 sparks nationwide outrage, threatens investor confidence, and raises concerns over energy policy inconsistency and clean energy future.
Islamabad – July 24, 2025 | By MediaBites
In a move seen as a direct blow to Pakistan’s solar energy revolution, the government has proposed slashing the solar net metering buyback rate from Rs27 to just Rs11 per unit, triggering national uproar, legal threats, and accusations of betrayal from citizens and clean energy advocates.
The controversial proposal, now temporarily paused by Prime Minister Shehbaz Sharif, has sparked fears of a policy U-turn that could cripple Pakistan’s growing solar ecosystem. Sharif has directed the Power Division to consult stakeholders, but for hundreds of thousands of solar users, the damage is already done.
From encouragement to exploitation
In recent years, the government urged citizens to “go solar” amid rising electricity costs, chronic load shedding, and ballooning circular debt. Homeowners, small businesses—even those relying on loans—invested in rooftop solar systems with the promise of long-term relief and stable returns.
That optimism is now under threat.
“Solar was pitched as Pakistan’s energy salvation. Now the same government is sabotaging those who took the leap,” said Mian Sohail Nisar, Patron-in-Chief of the Pakistan Industrial and Traders Associations Front. “This isn’t just bad policy—it’s economic betrayal.”
A growing solar wave, now in jeopardy
Between 2022 and 2024, net-metered solar capacity in Pakistan surged from 300 MW to nearly 2,813 MW by FY25. Over 280,000 households joined the solar movement. With the proposed buyback cut, many now face reduced savings and unclear returns on their investments.
Energy experts say the change stems from distribution companies (DISCOs) struggling to recoup costs as more consumers sell surplus energy back to the grid. In 2024 alone, Rs159 billion in costs were passed on to non-solar consumers—a figure projected to cross Rs4,000 billion by 2034 if left unchecked.
Structural failures, not solar
But critics argue the blame lies not with solar users, but with a broken system.
“The government never upgraded the distribution grid to handle solar reverse flow. Now they’re blaming the success of solar for their planning failures,” said a former power sector official. “Instead of fixing theft and inefficiency, they’re punishing responsible citizens.”
Adding fuel to public fury, a recent audit by the Auditor General of Pakistan exposed widespread overbilling by DISCOs, further eroding trust in the government’s energy agenda.
Gross metering confusion and broken promises
The push toward a gross metering system—where exported and imported units are priced separately—may make technical sense, but experts argue it’s being imposed without clarity, consent, or transition plans.
Consumers are reporting unsolicited replacement of smart meters, unexplained billing changes, and a total absence of consultation.
“The way this is being handled shows complete disregard for citizens who trusted the state,” said Syed Farid Hussain, an energy analyst. “This is not reform—it’s panic disguised as policy.”
Pakistan’s energy crisis: A history of U-turns
Pakistan’s energy roadmap has long been plagued by inconsistency. From botched LNG deals to stalled hydropower projects and shifting stances on renewables, successive governments have struggled to offer a cohesive plan.
Today, with circular debt soaring past Rs2.6 trillion and the IMF urging reforms, many believe the government is using solar users as an easy scapegoat.
“What we need is policy stability—not shortsighted decisions driven by short-term fiscal panic,” said Sohail Nisar. “These U-turns don’t just hurt investors. They risk derailing the entire clean energy transition.”
As stakeholders await the outcome of Prime Minister Sharif’s consultations, solar users across Pakistan are watching closely—and preparing to fight for the future they were once promised.
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