Net Metering in Pakistan

May 25, 2024

Renewable Energy

Introduction:

Net metering allows house owners and commercial industries to sell back energy produced from Solar Energy. However, Net metering has been a hot topic for the last few days. It happens because the federal government has changed their policies related to net metering. It raises many issues among the stakeholders

The Rise of Net Metering in Pakistan

Due to high increase in electricity prices net metering attracted the people towards its adoption. In Pakistan significant increase has been seen in net metering from the past few years.

It seems to be beneficial for house owners and businesses because it has reduced their electricity bills. This mass exodus from the national grid to net metering has been driven by the desire to escape expensive grid electricity .

The Government Response

The government of Pakistan is going to change the regulations of net metering in response to this rapid change. It may also cause the end of net metering. The proposed changes include separate rates of import and export units. Government is introducing gross metering that means the produced energy will be exported to the National grid.

The Impact on Consumers

The change will force consumers to pay high rates on electricity purchase and sell the electricity at low rates. Currently, import and export rates of electricity are the same. After the proposed changes consumers could end up with 43 per unit tariff price. It will have a bad impact on lower class people.

Tax Implications

The reason behind this proposed amendment is that thousands of net metering consumers are not paying GST, Fuel price adjustment and many other taxes. It’s causing a high loss of revenue to the government. That’s why the government is going to introduce gross metering.

Conclusion

Net metering has provided electricity consumers to escape high rates but it has also raised many issues for the government. It is the reason the government is going to implement a new policy to tackle these issues. We have seen many issues between government and the consumers as debate continues we will see how it will impact the future of net metering.

Net Metering in Pakistan

May 25, 2024

Renewable Energy

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