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In a significant move to amend the existing net metering rules, Pakistan’s Power Division has begun working on changes aimed at balancing the benefits for solar energy users with the financial burden on other electricity consumers.
The proposed amendments, which are set to be submitted to the National Electric Power Regulatory Authority (NEPRA) in July, include sending net metering power to the national pool and introducing capacity charges for net metering users
A 50% decrease in the net metering buyback rate is one of the significant modifications that are being considered. With this decrease, the existing three-year payback period for solar power investments will now last seven years.
According to Power Division sources, this modification is essential to preserving the financial balance in the energy industry. The National Grid’s current net metering share is 2000 MW. Over the previous year, the number of solar consumers increased significantly from 55,000 to 120,000.
Other consumers now bear an extra cost of Rs 2 per unit as a result of big users leaving the traditional grid owing to net metering. It is anticipated that if the current rate continues, this issue will get worse, with estimates pointing to a rise of up to Rs 350 billion the following year.
The Power Division seeks to alleviate this financial burden on a larger group of customers by making changes to the net metering rate.
Incorporating net metering power into the national pool is another of the planned improvements that should improve the overall efficiency of energy distribution. In order to guarantee that net metering users fairly contribute to the infrastructure costs—which are typically borne by all consumers—capacity charges will also be imposed on them.