Nepra Proposes Major Changes to Solar Net Metering Rules in Pakistan

Pakistan’s renewable energy landscape may be heading for a significant shift as the National Electric Power Regulatory Authority (Nepra) has proposed major changes to the country’s solar net metering framework. The regulator has released draft regulations that could directly impact existing and future solar consumers, especially households and small businesses relying on rooftop solar systems.

According to the proposed changes, Nepra is considering smaller allowable system sizes for net metering consumers. This move is aimed at better aligning solar generation with actual electricity consumption, but it could limit flexibility for users who planned larger systems to offset higher bills or future energy needs.

Another key proposal is a reduction in payments for surplus electricity sent back to the national grid. Currently, net metering users receive a relatively favorable rate for excess power exported to distribution companies. Under the new draft rules, this rate may be lowered, which could significantly affect the return on investment for solar panel owners.

Nepra has also suggested shorter contract durations for net metering agreements. At present, long-term contracts provide certainty to consumers and investors. Shortening these contracts could introduce uncertainty and may slow down new solar installations, particularly at a time when electricity prices remain high.

The authority says these proposed changes are aimed at ensuring fairness in the power system and reducing the financial burden on non-solar consumers. Power distribution companies have repeatedly raised concerns that net metering is shifting grid costs onto users who do not have access to solar energy.

However, the proposals have sparked concern among solar industry stakeholders, environmental advocates, and consumers. Many argue that reducing incentives could discourage renewable energy adoption, just as solar power is becoming a critical solution to Pakistan’s rising energy costs and power shortages.

Nepra has invited public feedback on the draft regulations and has given stakeholders 30 days to submit their comments and suggestions. The regulator has emphasized that the proposals are not final and may be revised based on public input.

As Pakistan continues to struggle with expensive electricity and fuel imports, the outcome of these proposed net metering changes will play a crucial role in shaping the future of solar energy in the country. All eyes are now on how consumers, industry experts, and policymakers respond in the coming weeks.

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