Proposal Resubmission to ECC
The Power Division is set to resubmit its proposal to the Economic Coordination Committee (ECC) to amend Net-Metering Regulations and lower solar energy buyback rates, as reported by Business Recorder.
Cabinet Division Approval
The Cabinet Division has permitted the resubmission of the proposal. Initially approved by the ECC on March 13, 2025, the Federal Cabinet deferred it pending further consultation, a condition now met.
Proposed Changes
The proposal includes:
- Capping net-metering contracts at five years.
- Reducing buyback rates from Rs 27 to Rs 10 per unit.
Impact of Net-Metering
The Power Division highlights that in FY24, net-metering:
- Reduced energy sales by 3.2 billion kWh.
- Imposed a Rs. 101 billion burden.
- Caused a Rs. 0.9/kWh tariff increase for non-net-metering consumers.
Future Projections
By FY34, net-metering is expected to:
- Reduce energy sales by 18.8 billion kWh.
- Add Rs. 545 billion in costs.
- Raise average tariffs by Rs. 3.6/kWh. The IGCEP 2025 projects 8,000 MW of net-metering additions by FY34, potentially disrupting least-cost power planning.
World Bank Support
The Power Division has sought World Bank assistance for a nationwide rooftop solar assessment. The Bank will support this through the Electricity Distribution and Efficiency Improvement Project (EDEIP).