The Pakistani government is contemplating a significant reduction in the tariff for electricity generated from roof solar panels, proposing to lower it to between Rs7.5 and Rs11 per unit.

This change would be a decrease from the current rate of over Rs21 per unit under the net metering system.

Currently, two units produced by solar panels are credited as one unit of grid electricity. If the new rates are implemented, the conversion would change to six solar-generated units equating to one grid unit.

This adjustment aims to address the growing issue of high capacity payments linked to solar energy usage, as indicated by a senior official from the Energy Ministry.

The decision comes amid concerns from the International Monetary Fund (IMF) regarding the increasing reliance on solar energy and its impact on grid electricity consumption.

The IMF has urged the government to enhance the demand for grid electricity, as the country imported approximately 15 GW of solar panels worth $2.1 billion from China last fiscal year.

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Under the proposed changes, consumers with solar panels would still access grid electricity at Rs60 per unit during peak hours, even though they currently pay Rs42 per unit.

The government is also exploring the introduction of gross metering, which would compensate consumers for all solar energy generated and fed into the grid.

The National Electric Power Regulatory Authority (NEPRA) has received numerous complaints from consumers regarding the installation of net metering systems, prompting action against companies not processing applications.