The federal government has decided to terminate solar net metering and introduce a gross metering system. This change aims to discourage solar usage and compel consumers to revert to the significantly more expensive grid electricity.
The Ministry of Energy has informed the International Monetary Fund (IMF) that net metering is reducing the revenues of distribution companies (DISCOs). Under the new gross metering system, consumers will be required to sell all electricity generated by their rooftop solar panels to the grid and then purchase back the electricity they need, according to the Express Tribune.
The government’s move to implement gross metering in the next fiscal year is a response to the growing number of households adopting solar energy to avoid the high cost of grid electricity, which, with additional charges, is approximately Rs. 62 per unit.
The Ministry of Energy explained to the IMF that the adoption of solar panels has reduced the demand for grid electricity, leading to increased idle capacity payments and frequent quarterly tariff adjustments. In the first ten months of the current fiscal year, 6,800 MW of solar panels were imported.
The IMF identified idle capacity payments as a significant factor in rising electricity costs and recommended a review of the captive power generation policy, which allows industrialists to use cheaper gas for in-house electricity production. The government may discontinue this captive gas policy next month, forcing industries to rely on more expensive grid electricity.
