- Solar electricity exported to the grid will be credited at a lower rate.
- Previously, imported and exported units were balanced one by one.
- Indeed, Discos considers it necessary to cover network infrastructure costs.
LAHORE: Marking a major policy shift with far-reaching implications, the federal government has initiated the process to abolish the net metering system and replace it with a net billing policy. The news reported on Wednesday.
Under the previous system, units of electricity imported and exported to the grid were balanced one by one at comparable retail rates.
While under the new policy, electricity drawn from the grid will be charged at the full national rate, while solar electricity exported to the grid will be credited at a significantly lower differential rate.
The economic impact of this policy U-turn is expected to be severe; a consumer exporting 300 units and importing a similar volume could now face a bill of around Rs 10,000, compared to almost zero under the outgoing system.
The government and power distribution companies (Discos) have defended the change, stating that it is necessary to cover grid infrastructure costs and mitigate alleged revenue losses.
However, critics argue that it effectively penalizes consumers who invested their own funds to strengthen national energy capacity.
The change comes amid ongoing systemic issues, including a backlog of outstanding net metering requests that Discos has yet to resolve.
Additionally, thousands of installed solar systems remain unmetered and unconnected.
Distribution companies such as Lesco have also suspended cases of installing new solar meters following the directives of the Federal Ministry.
Nepra recommends gross measurement
Last month, the National Electric Power Regulatory Authority (Nepra) recommended replacing the existing net metering system with a gross metering mechanism for rooftop solar consumers, citing increasing financial burden on conventional grid users.
According to the proposed Nepra Prosumer Regulation (NPR), a newly drafted 18-page document uploaded on the regulator’s website, future home solar consumers will exchange electricity with their respective distribution companies (Discos) through gross metering instead of net metering.
However, existing net metering consumers with valid seven-year contracts will continue to sell their surplus electricity at Rs 22 per unit until their agreements expire.
For new solar installations, electricity exports will be offset under a gross metering framework with a proposed buyback fee of Rs 11.30 per unit. These contracts will be valid for five years and may be extended by mutual agreement. Nepra has sought feedback from stakeholders and consumers in 30 days and may hold a public hearing before finalizing the regulations, an official said.
Under net metering, electricity exported to the grid is matched by imported electricity, reducing consumers’ bills. In contrast, gross metering compensates consumers with a fixed feed-in tariff for all electricity generated and exported, while electricity consumed from the grid is billed separately at retail rates.
