Big Blow Coming for Solar Users Govt Plans Tougher Rules & Higher Costs in Budget 2025-26

Pakistan’s solar revolution might be hitting a speed bump. In a move likely to shock thousands of solar energy users, the federal government is gearing up to introduce strict new rules and higher costs for solar panel systems and net-metering in the upcoming Budget 2025-26, sources told Influx Energy.

Budget 2025-26

According to officials, the Power Division is pushing hard to revamp net-metering laws—a shift that could make it more expensive and complicated for homeowners and businesses to go solar.

Just weeks ago, the government failed in its attempt to slash the solar buyback rate from Rs. 27 to Rs. 10 per unit. Now, determined to curb the rapid rise of net-metering users, it’s turning to tariff law amendments and financial deterrents.

Here’s what’s on the table:

  • Higher equipment fees for solar systems

  • New taxes on installation and service charges

  • Standardized import duties via the Revenue Division

These changes could make solar less accessible for the average Pakistani, threatening progress toward cleaner, more affordable energy. Stay tuned—this could reshape the future of solar energy in Pakistan.

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Why an IMF Loan is Celebrated Like a Trophy—Only in Pakistan [Opinion]

In most countries, securing an IMF loan signals economic distress. In Pakistan, it’s oddly hailed as a win. But while headlines cheer the latest bailout, everyday grid users are making quiet but powerful moves—ditching the national power grid for solar alternatives. And they have every reason to.

With Independent Power Producer (IPP) surcharges climbing unchecked, citizens are tapping into the sun to escape the crushing costs. Ironically, this comes as the IMF suggests power tariffs be lowered across the board—but reality paints a very different picture.

Here’s what’s brewing: The Power Division plans to slash the solar buyback rate—the amount paid to users for their exported solar energy—from the National Average Power Purchase Price to a meager Rs. 10 per unit. This rate was previously rejected due to public outrage but is now resurfacing, backed by legislative muscle through the Finance Bill 2025. It’s expected to take effect on July 1, 2025.

For current net-metering users, there’s a temporary sigh of relief—their existing contracts remain safe until expiration. But new adopters? Not so lucky. They’ll face reduced buyback rates and a complex billing structure separating imported (grid) and exported (solar) units. Exported power will be bought for cheap, while grid electricity will remain expensive—stacked with peak-hour pricing, taxes, and surcharges.

Behind all this is one simple fear: solar is winning too fast. The plunge in solar panel prices has triggered a solar rush, shaking up the traditional power sector. In just three years, solar capacity soared from 321 MW in 2021 to over 4,100 MW by 2024.

And the numbers don’t lie—net-metering users shifted a Rs. 159 billion burden onto grid consumers as of December 2024. If this trend continues, the government fears it could snowball to over Rs. 4,200 billion by 2034. Add to that fears of grid instability and the inability to store surplus solar energy, and it’s easy to see why the government is spooked.

But here’s the catch: instead of fixing the grid, they’re fixing the rules—and not in favor of the consumer.

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Pakistan’s Solar Dreams at Risk as Grid Costs Soar

Pakistan’s journey toward solar energy is moving at a snail’s pace—and things might get even slower. As electricity from the grid becomes more expensive, solar panel users are bracing for a new wave of financial setbacks.

More Charges Coming Soon

In the upcoming budget, solar users may face higher fixed charges on their net-metered bills—especially quarterly ones. These new costs could include capacity charges and additional fees related to power transmission and distribution. According to insiders at the Power Division, the goal is to ease the burden on conventional grid users, who often end up paying more when tariffs shift.

A Harsh Reality Check for Solar Users

Before these changes kick in, they’ll need Cabinet approval and regulatory integration by NEPRA. But make no mistake—the signs are clear: Pakistan’s solar momentum is heading into rough waters. Though details remain under wraps, it’s already shaping up to be a difficult budget season for renewable energy.