Third time in a row in July 2025, Pakistan’s net metering policy change once again has been frozen in time, waiting to be thawed someday. The proposed changes in March sparked heated debates, especially among the political circles, capitalizing upon their vote bank through solar panel distribution. Concerns were raised about discouraging solar adoption and harming the renewable energy sector, contrary to which, this amendment would have been in the best interest of the masses — grid customers. A closer look reveals that these reforms are a necessary step toward a more equitable and financially sustainable energy market.

One of the biggest misconceptions is that the reduction in net metering buyback rates—from the National Average Purchase Price (NAPP) of Rs 27 per unit to Rs 10 per unit, and now the yet again proposed Rs 11.3 per unit — would have deterred people from switching to solar energy. While the envisioned change did not have a major impact on the payback period for new solar users, it aimed to create a fairer energy landscape and also was not applicable to old net metering customers until the expiry of their current licence. It was assumed that all net metering users will see immediate reductions in their compensation rates. However, the revised rates applied only to new net metering applications. This would have ensured that those who invested in solar energy under previous policies were not unfairly penalized.

Solar prosumers — those who generate and export electricity—are currently compensated at a........

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