ISLAMABAD: The Renewable Energy Association Pakistan (REAP) has raised alarms over recent amendments to Distributed Generation and Net Metering Regulations, warning that the changes may incentivise consumers to shift off-grid— a move that, while not directly impacting the revenues of power Distribution Companies (Discos), could cause massive financial losses to solar investors who have imported inverters worth millions of dollars.
In a letter to the Power Minister, REAP emphasised that the 2015 Net Metering Regulations have played a crucial role in easing pressure on the national grid and encouraging clean energy investments.
However, the recent amendments—including the shift from net metering to gross metering and a significant cut in the purchase rate of solar-generated electricity— pose serious risks to the industry’s sustainability.
The REAP raised following key concerns:
(i) Job Losses; The amendments could negatively impact thousands of skilled workers, technicians, and engineers involved in net metering installations, increasing unemployment; (ii) Off-Grid Shift; Residential and commercial consumers may opt for off-grid solutions, reducing government revenue and increasing reliance on captive power plants; and (iii) Financial Hit to Solar Businesses; Imported on-grid inverters worth millions of dollars may become obsolete, straining businesses that invested in the sector.
Leghari says govt to ‘rationalise net metering,’ aims to ease burden on consumers
REAP has urged the Power Minister to allow the association to present its viewpoint to policymakers, seeking a balanced approach to the proposed amendments.
Wajid Chatha, a power sector analyst, criticized Discos, calling them “insensitive to strategic initiatives” and accusing them of failing to anticipate the impact of solar power integration. He pointed out that the System Operator and other stakeholders raised concerns about solar power’s impact two years ago, yet Discos failed to act in time.
Another expert, Ammar H Khan, questioned the rationale behind the policy shift, arguing, “There is no reason to swap an electron with a marginal cost of Rs 10 with one that costs Rs 28.”
However, Rehan Jawed, a representative of KATI, supported the government’s decision, stating, “We as industries back the new net metering rates. Purchasing and importing electricity at Rs 10 per unit is beneficial for us in the long run.”
While opinions remain divided, the policy shift could reshape Pakistan’s solar industry, with potential consequences for consumers, investors, and the broader energy sector.
Another expert Adnan Zafar stated that Net Metering is completely different from utility level renewable limits and are necessary for equal distribution of “distributed generation”.
Contrary to its name, presently distribution generation (DG) is not being distributed as per load requirements.
Zafar said that it would not be wise to compare Pakistan with the world because the world over they are making rules to distribute Net Metering equally and if this is not possible they simply curtail as per system requirements.
Power Minister Sardar Awais Leghari said that recent changes in net metering rules have reduced the cost of solar panels, making it more accessible to the public.
As a result, more than 4,000 MW of solar energy has already been added to the national grid, and this is expected to exceed 12,000 MW in the next eight years. He added that future solar net metering customers would recover their investments within three to four years, which represents an excellent return on investment.
Copyright Business Recorder, 2025
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