'No net metering applicant is poor'

Power minister justifies solar policy changes

ISLAMABAD:

Federal Minister for Energy Awais Leghari told the National Assembly on Wednesday that applications for net metering were continuing at the same pace despite changes in the policy.

Responding to a calling attention notice moved by Syed Naveed Qamar and others regarding changes in the net metering policy for solar consumers and the proposed 18% tax on solar panels, he said, "There is no poor person in net metering, and no injustice has been done to anyone."

The minister said the revised policy had been approved by the Economic Coordination Committee (ECC) and later by the federal cabinet after consultation with all stakeholders.

"Pakistan obtains 74% of its electricity from local resources last year and aims to increase that share to 96% over the next four years. The government is encouraging renewable energy and shifting imported coal-based power plants to Thar coal to reduce electricity costs," he said.

He said the net metering regulations were originally introduced during the PML-N's rule in 2017-18 and rates had been revised periodically.

According to the minister, declining global solar infrastructure costs had made net metering a profitable and environmentally friendly business in Pakistan.

He said the country was currently generating between 23,000 and 24,000 megawatts of solar electricity, out of which 14,000 to 16,000 megawatts were off-grid. He said tax incentives and concessions had helped promote solar adoption and claimed no foreign country had assisted Pakistan in this transition.

Leghari said existing net metering consumers would remain unaffected under the revised policy, while electricity purchased from new prosumers would now be bought at Rs9.80 per unit, equivalent to the cost of other renewable energy sources. He said a person investing Rs100,000 in solar energy could recover the investment within three years under the new prosumer regulations.