The Power Division of Pakistan is preparing to implement one of the most significant changes to its renewable energy policy to date: the replacement of net metering with gross metering. The proposed shift is part of a larger, newly drafted solar energy strategy now awaiting clearance from NEPRA and the federal cabinet.

Gross metering, unlike net metering, will pay solar panel users a fixed rate (Rs11.33 per unit) for all electricity fed into the national grid. Under net metering, users were able to offset their consumption, earning the equivalent of the full retail rate—Rs27 per unit—for surplus energy.

Sources involved in policy drafting confirmed that this change will not apply retroactively. Consumers already participating in net metering will retain their current agreements, shielding them from income loss.

The proposed model also introduces a formula for future solar buyback pricing: one-third of the general electricity tariff. Given Pakistan’s fluctuating energy prices, this move is aimed at creating predictable but lower returns on solar investments going forward.

This policy adjustment comes in response to rising concerns about the financial sustainability of net metering. Reports from the Power Division show that the system has created a cross-subsidy gap of Rs159 billion, with Rs103 billion directly attributed to high compensation rates.

The government’s broader goal is to facilitate the integration of 8,500 megawatts of solar power into the national grid while reducing the cost burden on non-solar consumers. Officials argue this shift will make energy cost distribution more equitable, particularly for households and businesses that cannot afford solar infrastructure.

The move is being closely watched by energy experts and environmental groups, some of whom fear that reduced incentives could dampen solar adoption in a country urgently needing cleaner energy alternatives.