Government Reviews Pakistan Net Metering Policy Amid Rising Solar Power Adoption

Pakistan has exceeded the 18,000 MW off-grid and net metering solar power capacity. This marks as a major achievement in renewable energy in Pakistan. According to The News reports, the fast pace of implementing rooftop and standalone solar systems has added strain on the national grid, increasing new burdens on grid stability and energy control.

The Ministry of Energy is closely reviewing the integration of renewable energy into the national grid. According to officials, distributed solar systems, particularly in the residential and agricultural sectors, have expanded sharply in 2025, with nearly 1,200 MW of new net-metered capacity added in just six months (PV Magazine).

Net Metering Pakistan 2025 and Renewable Energy Integration

The increasing number of solar installations both off-grid and grid-connected has become a large percentage of total generation in Pakistan. Solar energy is transforming the trends in the consumption of electricity in the country with more than 12,000 MW in off-grid systems and approximately 6,000 MW in net metering.

Analysts opine that this distributed solar energy has caused reduced reliance on the national grid but has also caused a decline in electricity demand threatening power industry revenues. The government is considering changes in the net metering rates of buybacks and is considering new policies of integrating renewable energy to the grid.

Power Sector Losses Drop in 2025

According to parliamentary committee sessions, losses in the power sector decreased by 2025 to 397 billion (compared to 600 billion in 2024). Nevertheless, there is still a question of transmission and distribution inefficiencies and system losses, especially in Karachi by K-Electric.

According to the officials, consumers in the whole of Pakistan and Karachi, in particular, will be given the opportunity to buy electricity with any registered company starting January 2026, which will introduce competition in the electricity supply market.

The Pakistan renewable energy market 2025 is shifting to decentralization with the growth of off-grid and net meter. Regulatory changes and grid upgrades help the government to strike a balance between the growth of renewable and grid stability.

The industry observers reckon that the solar energy boom in Pakistan has the potential to be very vital in cutting down on import bills and reliance on fossil fuels as long as the national grid is able to adapt effectively to distributed generation.

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