**Solar Association Rejects Lower Solar Net Metering Rates**
The Solar Association has strongly opposed the government’s decision to reduce solar net metering rates, calling it a detrimental move for the solar sector in Pakistan.
At a press conference, Chairman Adil Mahmood criticized the decision, stating that it undermines years of investment and efforts to promote solar energy. He pointed out that the government, including the President and Prime Minister, had previously encouraged solar investments, but has now taken a “U-turn” on those commitments.
“For the past two to three years, they have been appealing for solar investments, and now they are offering electricity at Rs54 per unit while expecting solar providers to sell at Rs10 per unit,” Mahmood remarked. He emphasized that this policy shift could severely impact billions of rupees invested in the solar sector.
Mahmood also expressed disappointment over the lack of consultation with stakeholders during the formulation of the solar policy. “We were not taken into confidence while drafting this policy,” he added.
The Solar Association is calling for the restoration of the previous rates. Mahmood urged the government to reconsider its decision to ensure the sustainability of the solar energy sector and protect the investments made by stakeholders.
This development has sparked a debate on the future of renewable energy policies in Pakistan, with industry experts and investors closely monitoring the government’s next steps. The Solar Association remains firm in its stance, advocating for a balanced approach that supports both affordability and investment growth in the solar energy sector.
It’s worth noting that solar panel prices in Pakistan recently saw a major decline following substantial changes to the federal government’s net metering policy. The installation costs for solar power systems have dropped significantly, with a 5 kW system now priced between Rs5 lac and Rs5.5 lac. These price fluctuations are in response to the government’s decision to reduce the buyback rate for solar net metering and implement net billing for new consumers. The policy adjustments aim to mitigate the rising costs of grid electricity, influencing both solar system prices and the overall dynamics of renewable energy adoption in the country.