Massive Change: Pakistan to Halve Solar Buyback Rate from Rs.22 to Rs.11.30 per Unit
Pakistan Solar Buyback Rate Cut 2025 Rs11 30 Unit is facing a major shift as the government prepares to slash the net-metering buyback rate from around Rs.22 to Rs.11.30 per unit. This dramatic reduction has sparked intense debate, as millions of rooftop solar users and investors brace for a new era in solar economics.
Industry analysts believe this policy overhaul may significantly impact the pace of solar adoption in Pakistan. While the government claims it aims to protect the national power revenue system, renewable-energy advocates fear this move could discourage investment in clean energy and slow down household solar transformation.
This in-depth guide explains the expected new net-metering rate, reasons behind the change, financial impact on domestic users, government narrative, expert opinions, and what comes next.
What Is Net-Metering in Pakistan?
Net-metering allows households and businesses to sell excess solar-generated electricity back to the national grid. Electricity exported gets credited against the energy consumed from the grid.
In simple terms:
- You generate solar power
- You use what you need
- Surplus goes to WAPDA / DISCOs
- They pay you per unit exported
Currently, domestic users benefit with buyback rates around Rs.19 to Rs.22 per unit depending on location and billing category.
Read Also: Punjab e-Credit Agriculture Program — Smart Financing for Farmers
The New Proposed Net-Metering Tariff: Rs.11.30 per Unit:
According to policy discussions and internal recommendations submitted to the Prime Minister’s office, the new buyback rate could be:
| Category | Current Rate | Proposed Rate |
|---|---|---|
| Domestic Solar Net-Metering | Rs.19–22/unit | Rs.11.30/unit |
| Commercial Solar Net-Metering | Rs.18–21/unit | Rs.11.30/unit |
This reduction represents nearly a 50% cut in export credit for solar owners.
Why Is the Government Reducing Net-Metering Rates? (Key Policy Reasons):
The government has shared multiple justifications for lowering solar buyback:
Fiscal and Revenue Pressure
Pakistan’s power sector already struggles with:
- Circular debt exceeding Rs.2.6 trillion
- High capacity payments to IPPs
- Low revenue collections
- Loss-making grid operations
Solar users exporting cheap power reduces grid demand, but IPPs still need to be paid. Government argues this creates financial imbalance.
Protecting Grid Viability
Grid companies warn that:
- If high-income households switch fully to solar
- Grid load is only from poor/non-solar consumers
- Tariffs on lower income groups may rise further
Global Trend Argument
Officials claim several countries are revising net-metering rates as solar scales.
But critics say Pakistan is comparing itself to countries with:
- Lower electricity theft
- Productive industries
- Stable power economics
Read Also: How to Register on eBiz Punjab Portal 2025
Impact on Solar Users in Pakistan:
1. Extended Payback Period
Currently, a 10kW solar system pays back in 3–4 years. After tariff cut, payback may stretch to 6–8 years.
2. Lower Incentive for New Installations
Solar installations, especially for middle-class homes, might slow down as financial return weakens.
3. Battery Storage Demand May Rise
Consumers may choose to store extra power in batteries instead of exporting at low rates.
4. Industry Growth May Slow Down
Thousands of installers, electricians, EPC firms, and panel suppliers could face reduced demand.
Financial Comparison for a 10kW Solar System
| Scenario | Export Rate | Monthly Savings | Payback |
|---|---|---|---|
| Current | Rs.22/unit | ~Rs.45,000–60,000 | 3–4 years |
| Proposed | Rs.11.30/unit | ~Rs.25,000–30,000 | 6–8 years |
This is a game-changing drop.
Why Solar Users Are Upset:
Solar was a long-term investment
People spent Rs.1.4 to Rs.2 million per system expecting stable policy environment.
Policy U-turn damages trust
Pakistan has repeatedly changed renewable policies, discouraging investors.
Solar reduces burden on national grid
Instead of rewarding clean energy, this move is seen as punishing adopters.
Inflation and electricity crisis already high
Consumers adopted solar to escape rising bills and power outages.
Government Justification vs Public Reaction:
| Government Argument | Public Response |
|---|---|
| Protecting power revenue | “Fix corruption and losses, not punish solar owners.” |
| Global policy alignment | “Developed nations have stable economies; Pakistan does not.” |
| Solar users benefiting too much | “Solar owners already paid huge capital cost.” |
Expert Opinions on Solar Net-Metering Change:
Experts highlight:
Solar Industry Consultants
A sudden 50 percent cut threatens Pakistan’s renewable-energy momentum.
Energy Policy Analysts
A balanced phased reduction would be smarter, preserving consumer confidence.
World Bank & IMF Policy Hints
International lenders have been urging reforms in power pricing structure.
Many believe this shift is partly influenced by economic adjustment pressures.
Will This Stop Solar Adoption in Pakistan?
Not fully, but:
- Growth rate may slow
- Premium solar systems may drop demand
- Lithium battery adoption may rise
- Off-grid systems could increase
Pakistan still faces:
- Expensive grid power
- Unstable supply
- Growing energy demand
Solar remains essential.
Impact on Pakistan’s Renewable Energy Vision:
Government targets 60% clean energy by 2030, yet such policies contradict clean energy goals.
Experts warn confusion like this harms:
- Investment trust
- Renewable infrastructure planning
- National energy security
What Alternatives Government Could Consider:
1. Time-of-Use Net-Metering
Higher rates during peak hours, lower at night.
2. Tiered Solar Export Policy
Different rates for:
- Domestic users
- Industry
- Small businesses
3. Gradual Reduction Over 5 Years
Predictable, investor-friendly transition.
Will Existing Solar Users Be Protected?
Government may consider:
- Grandfathering existing users for 5–7 years
- New tariff only for future installations
But no official notification yet. Policy clarity is still under review.
What Solar Users Should Do Now:
- Monitor government notifications
- Avoid panic selling or cancelling installations
- Consider battery backup planning
- Track electricity policy reforms closely
Future Outlook: What Might Happen Next?
If implemented, this policy could lead to:
- Increased focus on off-grid solar and batteries
- Slower rooftop adoption, faster industrial solar interest
- Political pressure to revise reforms after public backlash
Renewable transition won’t stop, but will evolve.
Read Also: BISP 8171 CNIC Check Online September 2025
Final Thoughts:
Pakistan Solar Buyback Rate Cut 2025 Rs11 30 Unit. Lowering net-metering rates may temporarily relieve power sector pressure but risks slowing the renewable revolution.
A balanced policy is key — one that protects grid finances while encouraging solar adoption. Pakistan cannot afford to move backwards on energy independence and sustainable power.
For households, solar remains a long-term resilience tool against inflation and power shortages, but financial returns may shift.
FAQs: Solar Net-Metering Cuts in Pakistan 2025:
Q1: What is the latest solar net-metering rate in Pakistan in 2025?
The government is considering reducing the solar net-metering buyback rate from approximately Rs.22 per unit to Rs.11.30 per unit, but the final notification is still pending.
Q2: Is the solar buyback rate officially reduced to Rs.11.30 yet?
Not yet. The proposal has been reviewed at the Prime Minister level, but no official NEPRA notification has been issued at the time of writing.
Q3: Will existing solar net-metering users be affected by the new tariff?
Policy discussions suggest that existing users may get protection under a grandfathering clause, but confirmation will come only after the official circular.
Q4: Why is Pakistan reducing solar net-metering rates?
The government aims to manage power sector losses, circular debt, and capacity payments, arguing that high-income solar adoption shifts financial burden to non-solar users.
Q5: Is solar still profitable after Rs.11.30 buyback rate?
Yes, but the payback period will increase from roughly 3–4 years to around 6–8 years, depending on usage and system size.
