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Bad News for Solar Users! LESCO Slashes Net Metering Rates from Jan 2026 – Earnings Take a Hit!

Bad News for Solar Users! LESCO Slashes Net Metering Rates from Jan 2026 – Earnings Take a Hit!

Lahore Electric Supply Company (LESCO) has reduced the net metering export rates for solar users, effective from the January 2026 billing cycle. The rate paid per unit of electricity exported to the grid has dropped by Rs 0.66, from Rs 25.98 to Rs 25.32. This change affects solar households across LESCO’s service area and comes as solar adoption continues to grow.

The reduction follows directives from the Ministry of Energy and aligns with Pakistan’s updated power sector regulations. LESCO also introduced stricter rules for exported electricity, capping any excess beyond the approved Distributed Generation (DG) capacity.

Customers must now carefully register Export Maximum Demand Interval (MDI) readings, as incorrect or incomplete data may result in billing discrepancies. Adjustments under CP 22 regulations will still apply to ensure eligible exports are credited correctly.

Energy analysts warn that this cut could reduce expected earnings for solar net metering customers. Solar users have played a significant role in meeting rising electricity demand in Lahore, with net metering installations accounting for a growing share of the city’s total electricity usage.

Despite the surge, the revised rates and tighter regulations may slightly shrink financial returns for households investing in solar energy.

LESCO has instructed all staff to implement the new billing system immediately. The utility company emphasized compliance with the new rules to avoid errors in net metering credits.

Solar users are advised to monitor their exported electricity closely and ensure proper registration to maximize their benefits under the revised rates.

This move by LESCO highlights the evolving landscape of renewable energy in Pakistan. While solar adoption remains strong, policy adjustments like rate reductions and export restrictions may influence future investment decisions. Solar households should stay informed and adapt to changes in net metering policies to maintain optimal financial returns.

In other news read more about: Karachi’s KW&SC introduces ‘Unified App’ To Streamline Water And Sewerage Services

With LESCO’s updated billing rules in place, solar users face a more regulated framework, balancing the benefits of clean energy with stricter financial controls.

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Ubaid Arif

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