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PM Shehbaz Sharif Orders Appeal Against New Solar Regulations to Protect Consumers

PM Shehbaz Sharif Orders Appeal Against New Solar Regulations to Protect Consumers

ISLAMABAD: Prime Minister (PM) Shehbaz Sharif on Wednesday directed the Power Division to immediately file an appeal with the National Electric Power Regulatory Authority (NEPRA). The move aims to review the recently announced Prosumer Regulations 2026 and protect existing solar users.

The new rules replace the long-standing net metering system with a net billing framework. Under the changes, the buyback rate for rooftop solar electricity could drop from Rs25.9 per unit to Rs11 per unit. The contract period for prosumers has also been reduced from seven to five years. Critics argue this may discourage rooftop solar adoption and add inefficiencies to the power sector.

During a high-level meeting chaired by the PM in Islamabad, top officials including Deputy PM and Foreign Minister Ishaq Dar, Power Minister Awais Leghari, and other federal ministers discussed the impact of the new regulations. The PM stressed that the burden on 466,000 existing solar users should not fall on the countryโ€™s 37.6 million consumers who rely solely on the national grid.

The new framework requires utilities to buy excess electricity from households, businesses, and industries generating up to one megawatt at the national average energy purchase price. They will sell electricity back at standard consumer tariffs, ending the one-to-one unit exchange system under net metering.

Power Minister Awais Leghari defended the move, stating it aligns with NEPRAโ€™s legal authority and existing constitutional provisions. He clarified that the new regulations will not apply to current solar users until their contracts expire. After that, Discos may either terminate agreements or move users to the net billing system.

In other news read more about PM Shehbaz Hails Launch of Kuwait-Based Bank in Pakistan

The PMโ€™s intervention aims to ensure a fair transition for solar consumers while maintaining stability in the national power system. A detailed plan will be developed to address consumer concerns and prevent additional costs from falling on the general public.

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