Pakistan’s solar industry is grappling with uncertainty following recent amendments to the net metering policy, which have caused a drop in solar panel prices. As a result of these changes, consumers now find solar energy options more affordable, with prices of solar systems decreasing by Rs35,000 to Rs175,000.
Currently, a 5 kW solar system is priced between Rs500,000 and Rs550,000, while larger systems, such as a 10 kW unit, are available for over Rs800,000. The price reduction follows the government’s decision to lower the buyback rate for solar net metering to Rs10 per unit and implement net billing for new consumers.
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The government’s goal with these amendments is to curb rising grid electricity costs. However, the move has sparked concerns among industry leaders, who argue that it could have negative effects on consumers and the solar sector. The Pakistan Solar Association (PSA) has voiced particular concerns regarding the impact on residential users and small-to-medium enterprises (SMEs).
PSA Chairman Waqas Moosa highlighted that the new regulations will increase the payback period for on-grid solar systems from 1.5 years to around three years. This could lead to a growing preference for off-grid and hybrid solar systems, which feature advanced lithium-ion batteries and offer shorter payback periods.
The PSA has urged the government to consult industry stakeholders before finalising these policy changes, warning that the new approach may reduce grid demand and raise electricity prices for those still connected to the grid.
