Nepra Likely to Reduce Solar Buyback Rate from Rs. 23 to Rs. 10 The government is considering a major change in how solar electricity is compensated in Pakistan. According to Power Division officials, a proposal has been prepared to cut the nepra solar buyback rate from the current Rs. 23 per unit to nearly Rs. 10 per unit. This change is being discussed due to increasing pressure on the national grid and rising financial obligations.
Officials also indicated that in the future, the buyback system could even be removed entirely, meaning consumers generating solar power may not receive payment for electricity sent back to the grid. Instead, households producing solar energy would be required to utilize most or all of the electricity they generate themselves.
The current policy has resulted in nearly Rs. 125 billion being paid to solar-generating consumers. However, with the rapid growth of rooftop solar systems nationwide, the revenue for power distribution companies has dropped significantly. During the fiscal year 2024 alone, grid electricity sales decreased by 3.2 billion units, causing a revenue loss of Rs. 101 billion. This shortfall contributed to an increase of nearly Rs. 1 per unit in electricity tariffs for regular consumers.
The government argues that this imbalance is making it difficult to manage payments to Independent Power Producers (IPPs). As a result, the prime minister has directed authorities to reassess the nepra solar buyback rate policy and evaluate its long-term impact on the power sector. Any final changes will be announced after a detailed review.
In short, Pakistan’s solar policy is at a turning point, and consumers are closely watching how the nepra solar buyback rate reforms will shape the future of home-based solar energy.
