Solar Energy Setback? Govt Plans to Tighten Rules on Net-Metering in Budget 2025-26

In a move that could shake up the solar power boom in Pakistan, the government is gearing up to introduce stricter policies for solar panel systems and net-metering in the upcoming Budget 2025-26, sources told Influx Energy.

Budget 2025-26

According to insiders in the Power Division, long-feared amendments to net-metering regulations are finally on the table. Just weeks after failing to slash the solar buyback rate from Rs. 27 to Rs. 10 per unit, officials have shifted their strategy. Now, instead of price cuts, the government plans to make it tougher—and more expensive—for people to switch to solar.

What’s Changing?

  • Higher equipment fees
  • New taxes on installation and service charges
  • Standard import duties on solar products via the Revenue Division

The push comes as solar adoption continues to surge, making it harder for the national grid to keep up. If approved, these changes could slow down Pakistan’s solar transition and impact thousands of current and future solar users.

Stay tuned to Influx Energy for updates on how this could affect your solar plans—and your electricity bill.

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Why an IMF Loan Feels Like a Celebration Only in Pakistan — Meanwhile, Solar Users Brace for a Storm

[Opinion]
In a country where bagging an IMF loan is treated like a trophy win, everyday Pakistanis are making quieter, smarter moves—ditching the grid for solar panels to dodge the sky-high IPP (Independent Power Producer) surcharges. While the government touts economic “milestones,” regular people are busy finding escape routes from a system that keeps draining their wallets.

But the solar freedom ride might be coming to a halt.

Despite the IMF giving the green light to cut electricity prices, the government is planning a major shake-up to the net-metering game. Starting July 1, 2025, the buyback rate for solar power is expected to be chopped to Rs. 10 per unit—down from the current National Average Power Purchase Price (NAPP). This isn’t new; a similar plan was previously shelved after public backlash, but this time, the government’s sneaking it through the Finance Bill 2025.

Here’s the kicker:
Existing solar users are safe—for now. As long as you’ve got a valid agreement or license, you’re locked in until your contract expires. But if you’re planning to go solar in the next fiscal year? You’re in for a rougher deal. Lower buyback rates, higher taxes, and more complicated rules are heading your way.

The plan? Separate imported grid electricity and exported solar power completely. So, if you use solar and send extra back to the grid, you’ll get just Rs. 10 per unit for that. But the electricity you take from the grid? You’ll still pay peak-time rates, extra surcharges, and all the taxes stacked on top.

Why the sudden crackdown on solar?
Simple: the government is panicking.

Solar panel prices are crashing, and installations are booming. By December 2024, solar users had shifted Rs. 159 billion of costs away from themselves—and dumped them on grid users. If this trend keeps up, the number could hit Rs. 4.24 trillion by 2034. That’s not just big; that’s scary-big for a fragile energy system with no proper storage or backup.

In 2021, we had 321 MW of solar power installed. By the end of 2024? Over 4,100 MW. The grid can’t handle this flood of free energy during the day—and is still expected to supply full power at night.

So while our leaders celebrate loan approvals like cricket victories, the real power struggle is happening quietly on our rooftops.

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Pakistan’s Solar Slowdown: As Electricity Gets Pricier, Solar Faces a New Setback

Just when solar energy seemed like the smartest escape from soaring electricity bills, Pakistan’s solar adoption is hitting the brakes. Despite rising grid prices, the shift to solar is painfully sluggish — and it’s about to get even tougher.

More Charges, Less Incentive

In the upcoming budget, solar users may be dealt a heavy blow with higher fixed charges on their quarterly net-metered bills. These new charges are expected to include capacity fees and extra costs tied to the power distribution and transmission networks. According to sources in the Power Division, these measures are being considered to ease the financial pressure on regular grid consumers, who’ve long shouldered the weight of repeated tariff hikes.

But there’s a catch: before these changes kick in, they’ll need to clear Cabinet approval and NEPRA’s regulatory review. Still, the signs are loud and clear — Pakistan’s solar momentum is in trouble.

What Lies Ahead?

Industry insiders hint that this budget could mark a tough turning point for renewable energy in Pakistan. With costs rising and support dwindling, the dream of clean, affordable energy may be slipping further out of reach — unless strong policy action revives the spark.