NEPRA renews power unit buyback rates to fix at Rs 10

NEPRA – (Special Correspondent / Web Desk) – The regulator NEPRA is working on a major revision to the solar net-metering rates. Current buy-back payments of around Rs. 23 per unit could be cut to Rs. 10 per unit, according to insiders. In a next phase the mechanism might be removed completely, meaning solar consumers might receive no payment for the electricity they export to the grid. Those households and businesses generating solar power may be required to use all of it themselves and not send any surplus back to the grid.

Industry sources reveal that the total paid to solar-net-metering users has reached about Rs. 125 billion. This large outflow is driving concern in the Power Division and among policymakers.

The underlying issue: as more rooftop solar systems come online, grid electricity consumption is falling. In FY 2024, sales to the grid dropped by 3.2 billion units, costing distribution companies about Rs. 101 billion in lost revenue. That shortfall helped push up tariffs for traditional users by nearly Rs. 1 per unit.

Officials say many rooftop-solar customers are gradually replacing the role of independent power producers (IPPs) on the grid, making payments to IPPs difficult for the government. The shift is creating technical and financial strain on the national grid infrastructure.

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This situation triggered intervention from the prime minister, who on October 22 directed the Power Division and NEPRA to carefully evaluate the buy-back tariff and its broader impact before any reforms are announced.