Government Plans to Cut Solar Buyback Rate and Increase Grid Supply Price
The federal government is preparing to reduce the buyback rate for excess solar electricity while simultaneously increasing grid supply charges for solar users.
Revised Buyback Tariff for Solar Consumers
According to sources, the government is revising the buyback tariff from Rs. 27 per unit to Rs. 8-9 per unit for net metering users. The move aims to distribute electricity costs more equitably among all consumers.
Read More: Minister Leghari Provides Solar Net Metering Taxation Update
The number of net metering users has risen sharply, from 224,000 in October 2024 to 283,000 in March 2025, resulting in a Rs. 159 billion financial burden on non-solar consumers. The policy has primarily benefited wealthier consumers, leaving nearly 40 million electricity users to bear the extra cost of Rs. 1.5 per unit.
Balancing Solar Investments and Fair Pricing
While early adopters benefited significantly, the government believes the existing structure has created an imbalance in the energy sector. Even with adjusted tariffs, solar investments remain attractive, with the payback period extending from 2 years to 4-5 years—a more sustainable timeframe for return on investment.
The government remains committed to the solar net metering policy but aims to implement a fairer tariff structure to ease the financial strain on the majority of consumers.
Background: Solar Net Metering Policy
The Pakistan Muslim League-N (PML-N) government, under Mian Nawaz Sharif and Power Minister Awais Leghari, introduced the solar net metering policy in 2018. The initiative aimed to promote renewable energy, allowing consumers to sell excess electricity back to the grid, reduce electricity costs, and lessen dependence on fossil fuels.
With the new adjustments, the government seeks to strike a balance between solar adoption and fair energy pricing, ensuring a sustainable and inclusive energy future for Pakistan.
