Pakistan has recently made a change in its electricity buying policy. The Economic Coordination Committee (ECC) approved this new policy. It lowers the price the government pays for solar energy from Rs27 per unit to just Rs10 per unit. This decision has created a lot of discussion.
Why the Change Happened
Over the last few years, more people in Pakistan have been installing solar panels. Homes and offices use these panels to make their own electricity. Thus there has been a substantial growth in net metering in Pakistan. The reason for this increase is the growing number of power outages and rising electricity prices. Many people decided to use solar panels as an alternative to the unreliable and expensive electricity supply.
Impact on Regular Consumers
The new policy aims to reduce the financial burden on regular electricity consumers. A government spokesperson mentioned that the rise in net metering users has added an extra load on regular consumers. The policy aims to ease this problem.
Net metering users are those who produce their own electricity through solar panels. They get credit for the extra electricity they send back to the grid. This has been good for solar users but challenging for the government and regular users.
Growth in Solar Net Metering
The number of net metering users in Pakistan has grown a lot. According to data, the number of net metering consumers will reach 283,000 by the end of 2024. This is an increase from 226,440 in October 2024. The government also said that by December 2024, net metering consumers will shift an additional burden of Rs159 billion onto regular users. Without this new policy, this burden could rise to Rs4.24 trillion by 2034.
The amount of electricity produced by net metering consumers has also increased. In 2021, net metering consumers produced 321 MW of solar power. By October 2024, this number grew to 3,299 MW. It is expected to reach 4,124 MW by December 2024.
New Rate for Solar Energy
Under the new policy, the government will buy solar energy at a much lower price. The price is now Rs10 per unit, instead of the old rate of Rs27. This is a big change. The new policy also allows the government to import electricity during peak hours. However, during peak times, the price of electricity will be Rs60 per unit.
Concerns About the New Policy
Energy experts have raised concerns about the new policy. One expert, Rao Amir Ali from Arif Habib Limited, said that this new policy could discourage people from installing solar panels. Under the old policy, people could recover the cost of their solar system in three to four years. But with the new policy, it might take 10 to 12 years to recover the cost. This could make people less interested in using solar power.
Government’s Explanation
The government explained that net metering consumers do not pay for capacity payments or fixed charges. These are payments that regular consumers have to make. This has been creating a financial strain on the government. The new policy is meant to balance the electricity distribution system.
Focus on Major Cities
The government also pointed out that most net metering users live in the country’s top cities. Around 80% of net metering consumers are from the nine largest cities. These cities are usually wealthier areas. The new policy will help to balance the electricity system in these cities and ensure fairness between regular consumers and solar users.
Effect on Solar Energy Market
This change in policy will have a big effect on Pakistan’s solar energy market. As more people start using solar power, the government needs to ensure that it does not negatively affect the regular power supply. The new policy is aimed at fixing some of these problems, but it also has some negative consequences for those wanting to invest in solar power.
Conclusion
Pakistan’s new policy for buying solar electricity is a big change. It lowers the price the government pays for solar energy from Rs27 per unit to Rs10 per unit. This decision aims to reduce the financial burden on regular consumers. However, it might discourage people from adopting solar energy. Experts worry that it will take longer for people to recover the cost of installing solar panels. This change could also impact the future of the solar energy market in Pakistan.
FAQs
What is the new price for solar electricity?
The new price for solar electricity is Rs10 per unit.
Why did the government change the policy?
The government changed the policy to reduce the financial burden on regular consumers due to the rise in net metering users.
How much electricity do net metering users produce?
Net metering users produced 3,299 MW of solar power in October 2024, with an expected rise to 4,124 MW by December 2024.
What are the concerns about the new policy?
Experts believe the new policy will make it harder to recover the cost of solar panels, possibly discouraging people from using solar energy.
Where are most net metering users located?
Around 80% of net metering users live in Pakistan’s nine largest cities, mainly in wealthier areas.
