The National Electric Power Regulatory Authority (NEPRA) is considering reducing the solar buy back rates under the net metering policy from Rs23 to Rs10 per unit.
The government is planning to lower the NEPRA solar buyback rate from Rs23 to Rs10 per unit, according to officials in the Power Division. The solar buy back rate is the price paid to people who generate solar power and supply their unused electricity to the national grid.
Officials said the change is being considered because a sharp rise in rooftop solar systems has reduced grid electricity sales. In FY2024, power distribution companies lost around 3.2 billion units in sales, causing a Rs101 billion revenue loss. This loss led to a tariff increase of nearly Re1 per unit for regular users.
They added that the government has already paid about Rs125 billion to solar power producers under the current system, putting pressure on the national budget and power companies.
Future of Solar Buyback Rates
The Power Division is also considering ending the solar buy back mechanism completely in the next phase. This would mean solar users would not be paid for any extra electricity they send to the grid and would have to use all of it themselves.
Officials warned that the growing use of rooftop solar is making it harder for the government to pay Independent Power Producers (IPPs). On October 22, Prime Minister Shehbaz Sharif instructed NEPRA and the Power Division to review the buyback tariff again and study its impact before announcing any final decision.
