ISLAMABAD: The federal government has officially stopped the implementation of the controversial decision to transition solar power users from net metering to a net billing system. Following a wave of public backlash and political pressure, Prime Minister Shehbaz Sharif directed the Power Division to suspend the new regulations and file a review appeal with the National Electric Power Regulatory Authority (NEPRA). This move ensures that the existing contracts of over 466,000 solar prosumers remain protected under the previous unit-for-unit exchange model.
Addressing the National Assembly on Thursday, Federal Minister for Power Sardar Awais Leghari clarified that while the regulator has the legal authority to revise rules, the government is committed to upholding its promises to green energy investors. The minister noted that the proposed shift aimed to address financial imbalances where the government was purchasing solar power at Rs 27 per unit while receiving grid power at significantly lower rates. However, in light of the current inflation and public outcry, the Prime Minister has ordered that no existing consumer be shifted to the net billing regime at this stage.
Leghari emphasized that the broader energy reforms have already yielded significant results, including a reduction in circular debt by Rs 780 billion and the renegotiation of contracts with independent power producers (IPPs). These efforts have provided an estimated relief of Rs 3,400 billion to the national exchequer. Despite the pause on net billing, the government remains focused on rationalizing tariffs for industrial consumers to boost economic activity.
The minister also shared that Pakistan’s total solar capacity has reached approximately 22,000 megawatts, with a small fraction currently linked to the national grid. While the government aims to transition the country toward 90% clean energy by 2034, it will do so by balancing the interests of both solar users and the 37 million traditional consumers who do not have rooftop panels. For now, rooftop solar users can continue to enjoy their existing billing structure without fear of immediate policy changes.
