Govt Eyes Shift from Net Metering to Net Billing as Solar Power Surges Beyond Control

The government is planning to transition from net metering to a net billing system as the capacity of net-metered solar installations has hit 2,500 MW. This was revealed during a meeting chaired by Federal Minister for Energy Sardar Awais Ahmad Khan Leghari, which was held at the office of the Private Power and Infrastructure Board (PPIB) to discuss the framework change. The minister clarified that net metering will not be abolished, but rather altered for the sake of grid stability. Leghari noted that the system has expanded considerably and now requires adjustments. He explained that discussions are ongoing regarding the linking of unit purchases to dynamic energy prices, which would allow for automatic rate adjustments. The minister said the government has terminated 9,000 MW of costly projects and imposed levies on captive power users, redirecting them to the grid. Since June 2024, a cross-subsidy of Rs. 174 billion has reduced industrial power tariffs by up to 31 percent. Tariffs for other consumer categories have declined by 14 percent to 18 percent. He said the government currently holds 7,000 MW in surplus capacity, which can be offered to industrial and agricultural consumers at 7 to 7.5 cents per unit without subsidies. Leghari emphasized that all reforms are part of a comprehensive energy strategy aimed at modernizing the grid, improving system efficiency. Solar electricity production is expected to see some big changes to better manage the grid.