Govt. Plans to Reducing Buyback Unit Rates for Net Metering: Cutting Buyback Rates from Rs 21 to Rs 11/unit for Net Metering

Government’s Bold Move: Reducing Buyback Unit Rates for Net Metering Consumers from Rs 21 to Rs 11/Unit

According to the Power Division, excess power rates should reflect the affordability of distribution firms, whereas solar systems should primarily serve personal consumption.

The government is proposing lowering the repurchase cost for net metered power from Rs 21 to Rs 11 per unit.

According to insiders, the increase in net metering installations has affected the government’s ability to manage capacity prices as wealthier sectors choose net metering systems.

The Power Division feels that net metering’s benefits to customers have peaked, and the sector is now facing challenges.

While the government favors solar energy, the current repurchase rate of Rs 12-22 per unit is considered unsustainable.

Officials say that solar systems should be used largely for personal consumption, with excess electricity costs reflecting the affordability of distribution businesses.

As of March 31, 2024, imports of solar panels capable of producing 6000 MW have been registered, with 3000 MW currently generated by solar power.

The National Electric Power Regulatory Authority (NEPRA) will begin modifying the 2015 Alternative and Renewable Energy Distributed Generation and Net Metering Regulations in 2022.

The proposed modification includes changing the term ‘National Average Power Purchase Price (NAPPP)’ to ‘National Average Energy Purchase Price (NAEPP)’, following an increase in NAPPP from Rs.12.95/kWh to Rs.19.32/kWh on July 25, 2022.

This amendment was open to public comment for 30 days before a hearing on September 27, 2022, after stakeholder engagement and media attention.

Consumers during the hearing rejected the modifications, noting net metering’s efficiency and minimal infrastructure costs.

Despite government pressure, NEPRA delayed its decision for months before deciding not to change the existing regulations, recognizing the economic benefits of net metering, such as cost savings, foreign exchange savings, and minimal losses, despite accounting for less than 1% of the total energy purchased by DISCOs.

You may want to explore further about green metering.

Public reaction signals a critical need for policymakers to reconsider slashing net metering unit prices

Such an alarming response from the public is alarming for the country. Let’s go through the public reviews and concerns about the proposal or policy of reducing net metering unit price recently:

1. If the net metering amount is cut, everyone will install hybrid systems with lithium batteries. The government needs to renegotiate previous faulty deals with IPPs.
2. It is paradoxical that they are prepared to create electricity from diesel, which costs more than Rs.70 per unit, but are unwilling to acquire clean energy supplied by solar at Rs.21 per unit. Wow, what an unusual administrative decision!
3. “1. Hee Olo kafi tha barbaad gulista karnay ko her shak pay Olo behtha hai anjam e gulista kya hoga”
4. Government authorities will eventually pursue the same policy as in the agriculture sector, where growers have faced difficulties in selling rice, oil seed, and wheat.
5. It was previously tried but was fiercely rejected for various reasons by the Renewable Energy Association Pakistan and other key players. It will be questioned again.
6. Assalamu aallikum! Everyone understands why they favor diesel electricity over net metering: the biggest buyers of diesel from Iran are powerful hands who sell their diesel without regard for Pakistan and its people’s conditions.
7. I’m astonished these power division folks who make such absurd arguments don’t get fired. They were not fired when they signed costly contracts with IPPs, did not commence dam construction, and are now attempting to kill the solar business. While the country waits helplessly.
8. That is the very reason why I have installed 7kw solar system but haven’t thought of net-metring
9. Just look at these government officials. They would sell you electricity at a high cost and then try to buy it at a lower rate. Any government is responsible for providing an uninterrupted electricity supply, which our previous governments have consistently failed to do. People pay for solar energy, and they should not be forced to sell it to the government at a loss. Furthermore, solar users, like the government, should have the option of periodically raising these tariffs, just as the government does. In any event, I can’t stand the sight of WAPDA and DISCOS staff utilizing millions of units worth billions of rupees for free when the rest of the country is frequently without power.
10. Their erroneous deals with IPP are causing individuals to suffer. It is absurd to purchase from an IPP at considerably higher rates while not purchasing clean energy at much lower rates. Please do not penalize others because of your silly blunders. The government must support or provide tax credits to those who install or have installed solar panels.
11. This decision, if carried out, will be a disaster for the country. The entire world is moving toward renewable energy, while our government wishes to hinder this free electric energy concept.
12. Our governing structure is usually good at working against the interests of the common Pakistani people. Thermal generation by IPPs at more than Rs 100 per unit is acceptable to the government, but household-produced green energy at Rs 22 per unit is not. Instead, the government should support such energy at somewhat higher rates, taking into account the rising cost of everything. NEPRA must investigate this as a public concern, not just one involving IPPs.
13. The government proudly claims to have made dollar agreements with solar and wind corporations while refusing to pay even enough rupees to local net metering users. Such a curse politicians…. May Allah Almighty save us from goons.
14. It’s so bizarre that they want to lower net metering prices in order to pay capacity costs that should never have existed in the first place!! … Finally, the country is helping itself with its electrical shortage, but the government is there to ensure that citizens do not receive any relief. Almighty Allah, please protect us from the fires of this time.
15. Complete the Choo… Paa PDM is the final chance to lead Pakistan’s government as Adyala is preparing to punish these bastards shortly. The question remains: where is the $200 billion in black money in Swiss banks?
16. Who is the most powerful man in Pakistan? All Pakistani know well.
17. People must understand that an off-grid or hybrid solar system is the alternative solution for middle-class or lower-middle-class people. The govt. Officials are always looking for their own interests, so they will keep decreasing the unit price for net metering consumers.
18. جناب عوامی بجلی کمیشن مافیا اورکرپٹ معاہدوں کی راہ میں حلوے میں کانٹے کے مترادف ہے ۔ipp
    اگر ناراض ہوتے ہیں تو سارا پول کھلنے کا امکان ہے ۔۔بی بی نظیر کی دی ہوئی سوغات گلے میں پھندا ہے ۔60 روپے یونٹ سستی ہے اور عوامی بجلی 21 روپے مہنگی ہے ۔۔اس میں حکومتی کرداروں کا کوئی فائیدہ نہیں ۔یہ سولر تو پیٹ میں مروڑ پیدا کر رہا ہے
19. Utility providers buy back only Rs3 per unit from residential rooftops, and they do so toward the end of March rather than June, while peak demand occurs in April and May.
20. As of March 31, 2024, imports of solar panels capable of producing 6000 MW have been registered, with 3000 MW currently generated by solar power.
21. This indicates that people will eventually go to Hybrid or OffGrid. This judgment is not new; it is pending solely due to the influential residents of DHA.Bahria etc.
22. The government should provide relief to encourage the public to use net metering and purchase one unit for RS 100. Rather they are lowering the price to obsolete the concept of renewable energy that may worsen the climate change issue for our beloved country. May God help us in this the most worse govt. of all time.
23. We strongly oppose this disgusting proposal, which seeks to generate income for their own survival and indulgences at the expense of the poor. Stupid ignorant politicians damaged our country; they don’t know shit about formulating policies, duffers
24. The Power Division, which proposes this, is working as a lobbyist for IPP demands. It is preferable to go off-grid rather than relying on expensive and intermittent grid power and adjusting usage accordingly. This current puppet government was imposed on us without a popular mandate and does not reflect the interests of the people. They only represent the lobbied interests of major firms in the IPP/power sector.
25. If the net metering amount is cut, everyone will install hybrids with lithium batteries. If possible, the government should renegotiate faulty agreements from the past in light of IPP’s extremely poor and sad decision. Better we travel to Gaza for Jihad. At least, we have Jannah, food, and everything
26. This is known as Sadda Kutta “Kutta” and Tuwada Kutta “Tommy”. Say no to net metering, and instead use solar production and the rest of your production go to waste.
27. The government will honor IPP contracts, and even if no units are used, they must pay capacity charges to IPPS. There have been unsuccessful attempts to alter the contracts in previous years. This story will go on, and Pakistanis will continue to pay higher fees. The rationale is that high-ranking officials receive hefty commissions, and the owners of IPPS are extremely powerful individuals. Take a peek at the Hubco Directors’ list. The contracts will expire in 2026, but we cannot expect any respite for our poor Pakistanis.
28. Considering the ridiculous increase in electricity bills, people have begun to install solar systems in their homes; the government should encourage this trend and assist the public. It would be sheer dishonesty for the government to make such a decision, as individuals will soon switch to hybrid solar systems.
29. It’s extremely sad to hear…Bahria Town is already reducing its unit count by 30% due to a disagreement with IESCO. It is illegal to reduce buyback prices.Allah kay wastay, faida hamain bhee do. There is no need to provide the government with cheap electricity; instead, utilize batteries or help your neighbor. Say No to the Government
30. That is the policies of the puppet Pakistani government, and that is our so-called economist. It is preferable to make policies that will last at least 25 years, but in this position, rules and policies are changed on a daily basis, and people are unhappy. They only know how to cheat people and make money through various channels.
31. It’s interesting that the current buyback rate is Rs21, while the recent Wapda report highlights the cost of solar at Rs41, making it nearly as expensive as furnace oil. The obvious reason for this decision must be that our bureaucrats and politicians cannot make a quick commission on this, which will reduce their kickbacks from IPPs.
32. In reality, the government should promote sustainable energy through solar and prepare ahead to phase out pricey IPPs. As other countries have done, the go green initiatives but this is Pakistan… Meanwhile, build dams to generate cheaper electricity, which will benefit industry.
33. All power sector is corrupt and is saving the IPPs for the large amount being paid to them by the consumers.
34. Sir, ye log Jo is Mulk ko Chala Rahe hain Yani institution, police, departments, politicians, government, agencies, and adlia. They are all worse than prostitutes because prostitutes have principles, but these folks don’t. As a result, it is important to defeat Pakistan’s foes through combat. The public crisis will not be solved unless and until the public comes out of their homes and fights a war against the corrupt ashrafia. A French revolution is essential, or the Taliban must take control of the country. People should not pay taxes to an illegal government.
35. Dear buddies..I imagine the fate of solar energy as similar to that of CNG a few years ago. The government promoted… granted subsidiaries, and people invested billions. Everyone knows how it ends. I won’t hesitate to suggest that they won’t stop at only lowering prices, but will go even further by imposing additional levies and cuts, as Behria Rwp has done. 30% of export units are not counted. Let us hope for the best.
36. On the one hand, electric corporations are willing to pay a higher price for electricity from private enterprises while also encouraging and allowing consumers to do so. to be a part of the grid and avoid expensive supplier and foreign exchange costs. Surprised to observe a drop in consumer-produced solar power energy.
37. The only issue with net metering is that consumers provide low-cost energy to the grid, but bureaucrats want a part of this earning system. These nasty bureaucrats demand haram ka maal in every transaction. They do not want this country to succeed, only their own relatives.

By going through all the above sad and very strong reaction shocked me to heart. The public has very serious concerns and alleged the govt. officials very seriously. So, the federal govt. should take immediate notice and regain the public confidence in the high officials in the Department of Energy.

NOTE: It is important to note that NEPRA has its own version of current cutting on buyback unit price for net metering consumers. They put forth their own logic on how they are planning to give relief to the poor people of Pakistan. Till the next genuine news and summary comes on the news channels, we will keep an eye on the developments. Let’s see what happens in actual.