Net metering in Pakistan has imposed a significant financial strain of Rs103 billion on grid power consumers, prompting the government to consider transitioning to a gross metering system. The existing solar net metering mechanism, which allows users to send excess energy back to the grid and reduce their electricity bills, has grown rapidly in recent years.
Between 2021 and 2024, the installed solar capacity rose from 321 MW to 3,277 MW, and it is projected to reach 12,377 MW by 2034. However, the system benefits only a small fraction—0.6%—of the country’s 37 million electricity users. In 2024 alone, net metering contributed to a significant Rs103 billion cost, which conventional grid consumers had to bear.
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The Power Division warns that if no changes are made, the financial burden on grid users could balloon to Rs503 billion over the next decade. Major cities like Lahore, Karachi, Islamabad, Faisalabad, and Peshawar now account for 80% of net metering users, with more than 226,440 connections across the country.
To mitigate the impact, the government is considering introducing a gross metering system. Under this model, the rate paid to solar net metering users would drop from the current Rs21 per unit to Rs8–9 per unit. This policy shift is seen as crucial for maintaining grid stability and reducing the financial pressure on traditional power consumers.
The proposed reforms are expected to strike a balance between the continued growth of rooftop solar installations and the need for grid affordability, ensuring the sustainability of Pakistan’s power sector in the long term.
