The Ministry of Energy has initiated the development of a new solarization policy to enhance renewable energy integration across the nation. This policy includes plans to cut net metering electricity rates by 50% and modify buyback power rates and capital return schedules for net metering consumers.
Sources indicate that the new policy will reduce the buyback power rate to Rs11 from Rs22, aiming to lessen capacity payment burdens. It also suggests prolonging the capital return period for net metering customers from three to five years.
Further, the policy will determine the allocation of net metering across various grids to promote fair distribution and effective use of solar resources. Federal cabinet approval will be sought to move forward with these changes, reflecting the government’s dedication to sustainable energy initiatives.
The energy ministry also noted a 60% increase in solar consumers over the past year, pointing to the rising appeal of renewable solutions. The country has around 150,000 solar consumers who generate 3,000 megawatts of electricity from solar energy.
Despite these advances, there are ongoing challenges. Net metering costs on-grid consumers Rs110 billion annually, with monthly net metering units reaching 550 million.
Previously, it was reported that the Central Power Purchasing Agency suggested imposing a tax on those installing domestic or commercial solar panels, potentially charging Rs2,000 per kilowatt for a 12-kilowatt solar panel grid.
However, the Power Division has clarified that there is no established tax on solar power installations in the country. Reports confirm that neither the Central Power Purchasing Agency nor the Power Division has submitted proposals to the government for taxing solar energy.
