Pakistan to Replace Net Metering with Gross Metering: What Solar Users Need to Know

In a major development that could reshape the solar energy sector, Pakistan’s federal government is finalizing a policy to phase out net metering, replacing it with a gross metering system. This move is part of the new national solar energy policy, now in its final stages under the supervision of the Power Division.

According to officials, the upcoming policy proposes a buyback rate of Rs11.33 per unit for electricity generated through solar panels and sold back to the grid. This is a steep drop from the current net metering rate of Rs27 per unit, which has allowed solar panel owners to substantially reduce or even offset their monthly bills.

However, those already connected under the existing net metering system will continue to benefit from the older, higher rate. Their arrangements will remain unchanged, shielding them from the economic impact of this policy shift.

The transition is expected to apply only to new solar users, who will be enrolled under the gross metering system. Unlike net metering—where solar users offset their usage by exporting surplus power to the grid—gross metering calculates all generated power separately and compensates at a predefined rate, regardless of personal consumption.

Government insiders revealed that future buyback rates will be linked to one-third of the prevailing national electricity tariff, positioning Rs11.33 as a baseline figure.

The policy aims to integrate up to 8,500 megawatts of solar energy into the grid. Authorities argue this is necessary to reduce the financial pressure on non-solar electricity users, with the current net metering system causing losses of Rs159 billion, of which Rs103 billion is due to inflated purchase rates.

The draft policy is expected to be submitted for approval to the National Electric Power Regulatory Authority (NEPRA) before moving to the federal cabinet for final clearance.