Zorays Solar Pakistan
Pakistan’s recent decision to replace net metering with gross metering has sparked widespread concern among solar consumers. This policy shift, which reduces the buyback rate for surplus solar electricity from Rs 27 to Rs 10 per unit, threatens to undo years of progress in renewable energy adoption. Here’s why this decision must be reversed.
1. Financial Burden on Middle-Class Households
Net metering has been a lifeline for middle-class households struggling with soaring electricity bills. Under this system, a typical household with a 10kW solar system could generate 1,000 units monthly, consume 650 directly, and export 350 to the grid, offsetting nighttime usage and significantly reducing costs.
Gross metering, however, forces consumers to sell all their solar-generated electricity to the grid at Rs 10 per unit and buy it back at Rs 50 per unit. For a household generating 500 units, this means earning Rs 5,000 but paying Rs 50,000 for their 1,000-unit consumption, resulting in a net bill of Rs 45,000—nearly double what they would have paid under net metering.
2. Discouraging Solar Adoption
The new policy extends the payback period for solar investments from 1.5 years to 4 years, making solar less attractive for new adopters. This slowdown in solar adoption will hinder Pakistan’s progress toward its Vision 2025 target of 25% renewable energy.
3. Reinforcing Fossil Fuel Dependence
Pakistan’s energy mix is heavily skewed toward thermal power, which accounts for 62.24% of installed capacity and 49.01% of electricity generation. Renewables contribute just 4.75%. By discouraging solar adoption, the gross metering policy reinforces reliance on costly fossil fuel imports, further straining the economy.
4. Ignoring Technical Benefits
Solar inverters improve grid stability by delivering synchronized pure sine waves, reducing transformer stress and maintenance costs. Dismantling net metering ignores these benefits, prioritizing short-term financial gains for DISCOs and thermal power plants over long-term grid health.
5. A Step Backward in Global Context
Globally, energy giants like BP, Shell, and Aramco are pivoting toward renewables, investing billions in solar, wind, and hydrogen energy. Pakistan’s move to gross metering is a step backward, out of sync with global trends and the United Nations’ Sustainable Development Goals (SDGs).
The Way Forward
To reverse this policy shift, the government should:
- Reinstate Net Metering: Restore the Rs 27 buyback rate to encourage solar adoption.
- Incentivize Peak Shaving: Allow solar users to offset peak grid demand, reducing strain on infrastructure.
- Streamline Governance: Digitize approvals to curb corruption and ensure timely processing of net metering applications.
- Focus on T&D Losses: Address the 24,020 GWh lost in transmission and distribution, which far outweigh solar’s impact.
Pakistan stands at a crossroads. By reversing the gross metering policy, the government can safeguard the financial well-being of its citizens, reduce fossil fuel dependence, and achieve its renewable energy targets. The time to act is now.
