Waqas Moosa, the Chairman of the Pakistan Solar Association (PSA), spoke out on Tuesday, stating that proposed changes to net metering could pose significant challenges.
The PSA Chairman warned that these changes would negatively impact residential users and small to medium-sized enterprises (SMEs). This debate over net metering could reshape the future of solar energy in Pakistan.
The new regulations extend the payback period for on-grid solar systems to three years, while the current period is just 1.5 years. The payback period for hybrid systems that include batteries is already under three years. “Technology continues to reduce that timeframe,” Moosa stated. He anticipates a surge in solar-plus-battery installations in the near future, as demand is expected to rise significantly.
Read: Solar Cost Recovery Under the New Net Metering Policy 2025
Moosa has identified a significant downside. The export rates are currently set at Rs10 per unit, while using electricity from their sources saves consumers between Rs50 and Rs60. This price gap encourages more people to switch to battery power. He cautioned that this trend would result in longer off-grid periods for many. Consequently, the demand for electricity from Distribution Companies (DISCOs) will decrease, leading to higher prices for those still connected, particularly affecting low-income households. This outcome is contrary to the policy’s original goal.
According to Moosa, stakeholders were not consulted. He stated that sudden shifts can disrupt supply chains. On-grid equipment might fail, and the costs of hybrid systems could increase significantly. He argues that this proposed change to net metering in Pakistan requires reconsideration.
