Experts have warned that the financial strain on the net metering system could increase to Rs503 billion over the next decade if reforms were not brought to the rooftop solar policy.

Their concern came after a decline of over 10% in grid electricity demand. They have called for reforms while expressing concerns over the impact of burden on the grid metering consumers.

Net metering, the existing system, allows consumers to reduce their electricity bills by using solar power. In contrast, gross metering, a suggested modification, involves selling all the surplus energy back to the grid, possibly at a rate lower than the consumers pay to use it.

Urban consumers “are frustrated” with high electricity costs and have called for government collaboration with stakeholders to regulate the system, according to the Pakistan Solar Association (PSA).

The government’s net metering policy, introduced in 2017, prompted many electricity consumers to transition to solar energy.

Installed capacity increased from 321MW in 2021 to 3,277MW in 2024, with projections suggesting it would reach 12,377 MW by 2034. But only 0.6% of the nation’s 37 million electricity users benefit from the system.

The Power Division noted that in 2024, net metering users contributed to a cost of Rs103 billion, which was absorbed by traditional grid consumers.

Major cities such as Lahore, Karachi, Islamabad, Faisalabad, and Peshawar represent 80% of the country’s net metering users, with the total number of connections surpassing 226,440.

Read more

Power division shelves plan to change net metering rates

Minister says govt wants to continue net metering

Minister says govt wants to continue net metering

Earlier this month, PPP Senator Sherry Rehman stressed the need for a well-structured approach to ensure accessibility and affordability for the people, in line with the country’s 2030 solarization goals for a sustainable future.

Meanwhile, the PSA has reminded people to verify all necessary details beforehand when dealing with or visiting clients.

“Always request an electricity bill and the exact location of the site where the system is to be installed. If you are asked to visit a different location, kindly avoid doing so,” it said in a statement on Thursday.