Is govt abolishing net metering policy? minister clarifies

ISLAMABAD: Federal Minister for Power Division Owais Laghari has expressed regret over the spread of false information regarding the abolition of the net metering policy by the government.

Net metering is an electricity policy for consumers who own renewable energy facilities which allows them to use electricity whenever needed while getting credit for contributing their production to the grid.

Producing electricity partly for own consumption, and partly for sale to the DISCO, is now available in Pakistan provided anyone has a roof suitable for solar energy.

“Despite repeated denials and official statements, misleading news continues to circulate, causing unnecessary anxiety and panic among the public,” he said in a statement.

Minister Laghari condemned the dissemination of unverified news. He emphasized that such practices were contrary to the principles of responsible journalism and harm the country’s stability.

“The continuous spread of baseless rumours without proper verification is deeply regrettable,” Laghari said. “It goes against the very essence of responsible journalism.”

Previously, the Power Division also refuted rumours about the discontinuation of the net metering policy, reaffirming its commitment to the policy and calling for accurate reporting.

In a statement, the Power Division clarified that there was no truth to the reports circulating on various channels regarding the termination of the policy.

The statement emphasised that no instructions were received from Prime Minister Shehbaz Sharif concerning the net metering policy.

It further noted that the Power Division’s stance should have been taken before spreading the misleading news.

Also read: No plans for imposing tax on solar net metering: Leghari

Laghari also addressed these rumours last month, reiterating that no policy maker in the energy sector, including himself, had suggested the government was planning to end net metering. However, he acknowledged that future developments could not be predicted.

Speaking in the Senate, Laghari  hadprovided a historical perspective, stating, “In 2017, when Shahid Khaqan Abbasi was the prime minister`, the net metering policy was introduced. Over the past six years, it has seen significant growth.”

He highlighted that to date, there has been an investment of 1500 MW of energy in Pakistan by individuals through net metering. The country now boasts over 113,000 net metering connections, with rapid growth observed over the last two years.

Laghari pointed out that the global supply of solar panels has become virtually unlimited, leading to a significant decrease in their prices. “Considering the reduced costs of solar panels, inverters, and frames, investing in solar energy now offers good returns,” he added.

Owais Laghari stated that since the current government took office two months ago, no policy maker in the energy sector, including himself, has indicated that the government plans to end net metering.

He also mentioned that individuals who have installed solar systems have contracts with NEPRA for five to seven years, ensuring that the agreed-upon rates will be honored for both buying and selling.

However, he added that it is currently difficult to predict what the future holds in this regard.