Govt Likely to Change Solar Net Metering Policy to Extend Payback Period

The federal government is expected to change the Solar Net-Metering Policy to adjust the buyback rate for net metering to the average energy cost and to increase the payback period from three to five years. This proposal was discussed during an online seminar organized by the German development agency GIZ, reported Business Recorder. Currently, excess energy units from net-metered systems are carried forward for three months before being converted to monetary value and adjusted against peak consumption. Some experts and DISCOs suggested limiting this period to one month to promote self-consumption and reduce the installation of oversized solar PV systems. They also recommended establishing a central cell within DISCOs to oversee net metering activities, including the integration of rooftop solar PV systems and hosting capacity analysis. The seminar addressed the financial and technical challenges of net metering and explored solutions to create a balanced approach for the government, the solar industry, and consumers. Pakistan has installed 2,000 MW of net-metered capacity by April 2024, with over 130,000 systems generating 3 TWh of energy annually. However, technical issues such as high consumer voltage, distribution transformer overloads, and increased reverse power flow due to unauthorized rooftop solar installations were highlighted as significant challenges during the seminar. The seminar proposed reducing the net metering capacity limit to match the sanctioned load, similar to practices in Bangladesh, Saudi Arabia, and India, to prevent transformer overloads. Smart meters and enhanced network monitoring are needed to manage the impact of net metering systems more effectively. DISCOs were urged to conduct hosting capacity analysis using GIS mapping to provide transparent information about their network’s capability to integrate solar PV. A suitable tariff mechanism was also suggested, along with fixed charges for all consumers.