ISLAMABAD: The federal government has decided to reduce the buyback rates for net metering electricity to Rs10 per unit due to significant increase of solar net metering users.
In a worrying development for on-grid solar users, the government’s decision to slash the buyback rates of net metering electricity will impact the electricity bills of people.
Those people who had on-grid solar systems provided electricity back to the government will now have lesser incentive to install solar net-metering.
The Economic Coordination Committee (ECC) of the Cabinet approved the policy amendments regarding net-metering aimed at reducing growing financial burden on those who do not have solar systems installed.
“As part of the approved changes, the ECC has revised the buyback rate from the National Average Power Purchase Price (NAPP) to Rs10 per unit,” the statement read.
Earlier, reports claimed that the government would reduce the buyback rates of net-metering electricity from Rs27 to Rs17. However, the government has decided to significantly reduce the buyback rates while the electricity from grid remains costly.
However, the Finance Division clarified that: “The revised framework will not apply to existing net-metered consumers who have a valid license, concurrence, or agreement under the NEPRA (Alternative & Renewable Energy) Distributed Generation and Net Metering Regulations, 2015.”
“Any such agreements will remain effective until the expiration of the license or agreement, whichever occurs first. This ensures that the rights and obligations of these consumers, including agreed-upon rates, will continue as per the existing terms.”
This means that the reduced rates of solar buyback electricity will not be applicable to those consumers who have already installed solar systems.
In fact, this revised policy will be applicable to new net-metering clients. The government cited significant increase in solar net-metering consumers over the past few months as the main reason for this policy.
Earlier this week, Energy Minister Awais Leghari hit out at former finance minister Miftah Ismail for criticising government’s proposed reduction in net-metering solar rates.
