Pakistan’s business leaders today sounded the alarm over proposed changes to the country’s solar power framework, warning that the new Net Metering Regulations 2026 could saddle electricity consumers with billions of rupees in additional charges and jeopardise investment in renewable energy.
Saquib Fayyaz Magoon, Chairman of the Businessmen Panel Progressive (BMPP) and a Senior Vice President of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), voiced grave reservations regarding the plan by the National Electric Power Regulatory Authority (Nepra) to dismantle the current unit-for-unit net metering system.
The proposed regulations aim to introduce a net billing regime, where consumers can no longer directly offset the electricity they generate against their consumption. Instead, surplus power supplied to the national grid from rooftop solar installations would be purchased for approximately Rs11 per unit, while users would continue to procure grid electricity at rates as high as Rs50 per unit.
Mr. Magoon highlighted that this significant disparity between buying and selling prices would drastically prolong the payback period for solar investments, potentially causing financial losses for households and companies that have already made a capital outlay on solar technology.
‘Previously, if a consumer supplied one unit of electricity to the grid, it was adjusted directly against one unit consumed. Now, the settlement will be on a monetary basis after 30 days, with a massive gap between purchase and sale prices,’ he explained.
He noted that thousands of households had channelled their savings or secured bank loans to install solar panels as a defence against soaring electricity tariffs. ‘This policy shift will hit them the hardest,’ he warned.
The commercial sector is expected to face a dual challenge, paying steep tariffs for grid power while receiving a fraction of that price for their surplus solar generation. Mr. Magoon added that the subsequent rise in operational costs would inevitably be transferred to customers, fuelling further inflation.
Furthermore, he cautioned that the industrial sector, which has invested billions in solar energy to maintain its edge in international markets, would also be adversely affected. Increased energy expenses are set to elevate production costs, diminishing export competitiveness and potentially inflicting substantial losses on the national economy.
While existing net metering consumers might receive some temporary protection, Mr. Magoon stated the broader policy uncertainty would erode investor confidence. He also raised concerns about Nepra’s proposed authority to amend purchase rates and carry out quarterly reviews, arguing such frequent changes would undermine policy continuity and deter new investment in the renewables sector.
In a call for the immediate withdrawal of the proposed regulations, Mr. Magoon urged the government to engage in comprehensive consultations with all stakeholders, especially representatives from industry and trade, to develop a balanced policy that safeguards consumers and promotes sustainable economic growth.