Energy Minister Affirms Continuation of Solar Net Metering Policy

LAHORE: Federal Minister for Energy, Awais Ahmad Khan Leghari, reiterated on Sunday that the government had no intentions of discontinuing the policy of solar net-metering.

The minister’s remarks follow media reports suggesting the government’s inclination towards replacing the policy with a new gross-metering mechanism.

Net metering empowers consumers to sell surplus electricity generated by their solar systems back to their power distribution companies, resulting in substantial savings on their monthly electricity bills.

Contrary to this, under the gross metering mechanism, electricity produced by consumers’ rooftop solar systems is injected into the national grid, which consumers then repurchase from the distribution companies, potentially diminishing the financial benefits.

Speaking at a press conference held at the Lahore Electric Supply Company (Lesco) headquarters, the minister dismissed the media reports and emphasized the government’s commitment to promoting the adoption of solar power. He underscored that the policy was conceived under the leadership of PML-N’s Nawaz Sharif, who championed its promotion during his last tenure as prime minister.

“PML-N initiated this scheme [solar net-metering] in 2017, and we will continue to encourage net metering as it holds significant importance for PM Shahbaz Sharif,” stated the minister.

He further expressed the party’s pride in the scheme, highlighting its substantial benefits to a large segment of the population.

Mr. Leghari assured consumers who had previously installed solar power systems and entered into net-metering agreements with the distribution companies that they would remain unaffected by any policy changes.

The minister emphasized the government’s commitment to persistently advocate for net metering in the future, ensuring that any alterations to the policy would be made following thorough consultations with all stakeholders.

He noted a significant increase in the number of consumers applying for net metering licenses over time, with a notable surge of 125% recorded in 2023-24.

Mr. Leghari claimed that rooftop solar net-metering connections now account for 0.3% of total electricity consumers, with the total number of net metering connections reaching 113,000.

Addressing other issues in the power sector, he mentioned an 8% reduction in overall electricity demand due to a decline in industrial activity.

Responding to queries, he instructed the Lesco CEO to promptly address system constraints to prevent overloading during hot weather.

While refraining from naming the Khyber Pakhtunkhwa government, the minister expressed dismay over the politicization of power theft by a particular province.

He expressed hope that the Chief Minister of Khyber Pakhtunkhwa would present a feasible plan within the next 15 days to tackle the issue of power theft.

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