A high-level seminar witnessed a tense debate over proposed government amendments to Pakistan’s net-metering and rooftop solar policies, with industry leaders cautioning that the changes could jeopardise an estimated US$2 billion in consumer investments and push people off the national grid.
According to a statement issued today, the discussion, held at an event organised by the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) and Energy Update, highlighted urgent calls to harness Pakistan’s vast solar potential to fuel industrialisation and alleviate high energy costs for both industries and the general public.
Addressing the gathering, FPCCI’s Senior Vice-President, Saquib Fayyaz Magoon, asserted that Pakistan must emulate developed nations by exploiting its renewable resources to prevent industries from shutting down due to unaffordable power tariffs.
Representing the government’s perspective, Faizan Ali Shah, Adviser to the Power Division, assured participants that the proposed amendments were not intended to impede the country’s transition to renewable energy.
He explained the government’s concern that the swift adoption of rooftop solar by affluent citizens should not place an unfair financial burden on ordinary consumers unable to afford such installations.
Shah stated the policy adjustment aligns with international practices, where financial incentives for solar are gradually withdrawn as clean energy targets are met. He noted that Pakistan now meets up to 55 per cent of its electricity needs from renewable sources, a significant increase from when net-metering was introduced over a decade ago amid severe power shortages.
The adviser added that the government aims to meet over 90 per cent of electricity demand through renewables by 2035 and pointed out that the purchase price from major solar projects like Quaid-e-Azam Solar Park has fallen from 14 to approximately 3 US cents per unit, a rate he described as comparable to what is proposed for net-metering consumers.
However, Waqas Moosa, Chairman of the Pakistan Solar Association (PSA), warned that any drastic revisions could compel rooftop solar users to switch to battery storage systems, reducing their reliance on the national grid.
Moosa argued that consumers who invested their savings in solar systems to combat soaring power bills should not be financially penalised by “ill-conceived” policy shifts seemingly aimed at favouring independent power producers (IPPs) who receive substantial capacity payments.
He also called for greater automation in the licensing process, advocating for a one-window operation and proposing that distribution companies (DISCOs) be empowered to directly process applications for systems up to 25 kilowatts to avoid bureaucratic delays.
From a broader economic standpoint, businessman Mian Zahid Hussain described it as “utterly unwise” for the government to pay high capacity charges to under-utilised IPPs while simultaneously purchasing surplus power from domestic solar installations at high rates.
Financial analyst Moin M Fudda challenged the notion that buying excess solar power was a financial burden, arguing that at Rs 25.98 per unit, it is cheaper than electricity from conventional IPPs and involves no line losses.
Waqas Khaleeq, CEO of Smart Solar, highlighted that increased solar utilisation could significantly reduce Pakistan”s annual US$15 billion oil import bill and lower harmful carbon emissions from fossil fuels.
He drew a comparison with India, where net-metering is permitted for systems up to one megawatt and 11 GW of solar capacity has already been deployed. Expressing hope for a favourable resolution, solar industry leader Muhammad Zakir Ali appealed to Prime Minister Shehbaz Sharif, a known proponent of renewable energy, to reject the proposed changes to protect consumers” investments.
Concluding the seminar, Muhammad Naeem Qureshi, President of the National Forum for Environment and Health, implored the government to consider the significant environmental benefits of solar power in addressing the climate crisis when reviewing the incentive structure.