Govt Announces Reduction in Net Metering Rates for New Users, Existing Agreements to Stay Unchanged

The government is planning to reduce net metering rates for new contracts in an effort to ease the financial burden on electricity consumers, according to Federal Minister for Power Owais Leghari in a post on X (formerly Twitter). The net metering scheme, introduced in January 2018 during the tenure of Prime Minister Shahid Khaqan Abbasi, has so far benefited over 283,000 users. However, this system has also placed an additional Rs150 billion financial burden on other electricity consumers, forcing them to pay an extra Rs1.5 per unit to cover the cost.

To address this issue, the proposed changes will apply only to new contracts, while existing agreements will remain unchanged. Despite the lower rates, the government assures that new users will still be able to recover their investment within four to five years, keeping net metering a viable option for those interested in renewable energy. The move aims to balance the promotion of solar energy while ensuring that 40 million electricity consumers are protected from increasing costs.