It has been reported that, as stated in a recent address to the International Monetary Fund (IMF), Pakistan’s government intends to change the financial model of metering for solar panels.
The described change is a transition from net to gross metering for rooftop solar panels, sparking concerns for the accessibility of solar energy in the country – a potential detriment to the uptake of solar.
On the gross metering system, consumers would need to sell electricity generated by their panels to the grid at a Feed-in-Tariff (FiT) for 11 rupees. They would then ‘buy back’ their electricity consumed at retail prices of up to 62 rupees.
On the net system the electricity generated and consumed is measured, encouraging consumers to rely less on grid electricity. As grid electricity is expensive in Pakistan, this system made solar energy a financially viable option for consumers and therefore a sound budgetary decision for households.
It was also reported that the government would purchase electricity from the owners of rooftop panels at a price decided by the Central Power Purchasing Agency (CPPA).
The move has drawn widespread criticism from media outlets concerned that the government is halting its progress towards clean energy.
A misunderstanding
However, the Federal Minister for Energy, Awais Ahmad Khan Leghari, clarified that the reports were false – speaking at a press conference at the Lahore Electric Supply Company HQ.
Speaking to Geo Pakistan, Leghari clarified that the IMF had not requested a transition from net to gross metering, reinstating the government’s commitment to renewable energy:
“We will continue encouraging the net metering since it is the scheme close to the heart of PM Shahbaz Sharif.
“The number of total net metering connections has reached 113,000.”
Leghari added that a future policy change would be made after input from the shareholders and that solar panel owners currently on a net-metering system will “not be affected at all” at this moment in time.
