ECC lowers solar net-metering buyback rate to Rs10 per unit

ISLAMABAD: The Economic Coordination Committee (ECC) on Thursday approved amendments to net-metering regulations, reducing the buyback rate for solar net-metering consumers and revising the settlement mechanism to address the growing financial burden on grid consumers.

The decision, taken in a meeting chaired by Finance Minister Muhammad Aurangzeb, comes amid a sharp rise in solar net-metering consumers, which officials said has increased electricity costs for grid users.

Under the new framework, the buyback rate has been lowered to Rs10 per unit from the National Average Power Purchase Price (NAPP), with the National Electric Power Regulatory Authority (NEPRA) authorised to revise the rate periodically.

However, the changes will not affect existing net-metering consumers with valid agreements under NEPRA’s 2015 regulations, whose contracts will remain effective until their expiry.

The ECC also revised the settlement mechanism, separating imported and exported units in the billing process. Exported units will be purchased at the new buyback rate, while imported units will be billed at peak or off-peak rates, inclusive of taxes and surcharges.

Officials briefed the committee that the number of solar net-metering consumers surged to 283,000 by December 2024, up from 226,440 in October, with total installed capacity reaching 4,124 megawatts. They warned that without regulatory intervention, the financial impact on grid consumers could escalate from Rs159 billion to Rs4,240 billion by 2034.

The meeting was told that most net-metering users are concentrated in nine major cities, mainly in affluent areas, highlighting the need for a fairer cost-sharing mechanism.

The ECC also approved an exemption for a Gwadar Free Zone company to export up to 10,000 tonnes of potassium sulphate fertiliser annually until December 2025. Additionally, it directed the Ministry of Interior to seek a legal opinion before proceeding with a case related to gold confiscation and reward money under customs rules.

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The committee approved several technical supplementary grants, including Rs250 million for ICT-based educational projects, Rs220 million for SME development, and Rs670 million for the Sustainable Development Goals programme.

The meeting was attended by federal ministers, secretaries, and senior officials from key ministries and divisions.