In a major policy change, the Economic Coordination Committee of the Cabinet (ECC) revised the redemption rate of solar consumers on the roof at 10 rupees per unit of RS27 per unit.
The development while the ECC met under the presidency of the Minister of Finance Muhammad Aurangzeb, and approved a set of amendments to the regulations in terms of existing net creation aimed at reducing the growing financial burden of grid consumers, according to an official press release published Thursday by the Finance Division.
The decision comes in the light of a significant increase in the number of solar consumers for creating nets, with associated financial implications for grid consumers, he added.
“Within the framework of the approved changes, the ECC revised the buying rate of the purchase price of the national average energy (NAPP) to RS10 per unit.”
It has been specified, however, that the revised framework will not apply to existing net consumers “which have a license, competition or a valid agreement under NEPRA (alternative and renewable energy), regulations for generation and net trigger, 2015”.
“Such agreements will remain in force until the expiration of the license or the agreement, according to the first possibility. This guarantees that the rights and obligations of these consumers, including the rates contained, will continue in accordance with existing conditions,” the press release said.
In addition, the Committee approved the proposal, subject to the ratification of the firm, to allow the National Electric Power Regulatory Authority (NEPRA) to revise this buy -in rate periodically, ensuring that the framework remains flexible and aligned on evolving market conditions.
In addition, the ECC has also approved an update of the settlement mechanism. As part of the new structure, imported and exported units will be treated separately for billing purposes.
The exported units will be purchased at the revised redemption rate of RS10 per unit, while imported units will be invoiced at the applicable cutting -edge / off -peak rates, including taxes and surcharges, during the monthly billing cycle.
The ECC has also authorized the electricity division to issue proposed directives, subject to the ratification of the firm, to NEPRA for integration into the applicable regulatory framework, guaranteeing clarity and consistency in the implementation of these modifications.
The decision follows in -depth discussions on the growing impact of solar commissioning on the national electrical network.
The energy division has highlighted the urgent need for regulatory adjustments, citing a record drop in solar panel prices which led to a sharp increase in the number of solar consumers in net commissioning, according to the press release.
In December 2024, solar consumers by putting in net had transferred a burden of 159 billion rupees to grid consumers, a figure which should reach 4,240 billion rupees by 2034 without timely modifications.
The ECC was informed that the number of solar consumers of net staging had increased considerably, reaching 283,000 in December 2024, against 226,440 in October 2024.
The total capacity installed also increased from 321 MW in 2021 to 4,124 MW by December 2024, highlighting the rapid expansion of the net commissioning sector. However, the increase in solar consumers for creating nets has contributed to an increase in the cost of electricity for grid consumers, undergoing government efforts to reduce power prices.
The ECC has also discussed the financial implications of the growing number of net solar consumers, especially since they avoid paying the fixed load component of the price, including capacity fees and fixed expenses for electricity and transmission distribution.
“This has transferred a disproportionate financial burden on grid consumers, contributing to higher electric prices and undergoing the sustainability of the energy sector.”
The Committee has also noted that 80% of clean creation consumers are concentrated in nine large cities, with a significant proportion located in rich areas. This geographic concentration also highlights the need for regulatory reforms to guarantee the equity and balance of the energy distribution system, he said.
The press release indicates that the changes approved by the ECC represent a critical step to ensure the sustainability of the electricity sector while protecting the interests of all consumers, in particular those that count on the electricity network.