After months of indecision over revising solar net metering tariffs, Prime Minister Shehbaz Sharif has directed the Power Division to move forward with verifying new buyback rates in coordination with the National Electric Power Regulatory Authority (NEPRA).
According to sources, the directive came during a high-level meeting chaired by the prime minister on October 22, 2025, at the Prime Minister’s Office, attended by senior officials and key stakeholders from the energy sector.
Under the prime minister’s instructions, the Power Division and NEPRA will jointly review and validate the proposed buyback tariff, assessing its financial implications for other consumers before presenting final recommendations on the planned net metering reforms.
The Power Division has proposed a major reduction in the net metering buyback rate, cutting it from the current Rs. 22 per unit to approximately Rs. 11.30 per unit. The ministry argues that the existing rate creates an unfair financial burden on non-solar consumers, as distribution companies are required to purchase surplus solar power at high costs.
The prime minister also directed officials to scrutinize all existing contracts signed under the Net Metering Rules 2015, ensuring that any downward revision of rates does not breach legal agreements or investor protections.
The move signals the government’s intent to restructure Pakistan’s solar power compensation framework, balancing renewable energy incentives with the financial sustainability of the broader power sector.
