Net metering changes threaten solar industry
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Chairman of the Pakistan Solar Association (PSA), Waqas Moosa, has warned that proposed changes to net metering regulations will significantly impact the dynamics of the solar industry, particularly the residential and Small and Medium sized Enterprises (SMEs) sectors.
The proposed regulations aim to extend the payback period for on-grid photovoltaic (PV) systems to around three years, compared to the current 1.5 years. In contrast, hybrid (solar + battery) systems with lithium-ion batteries already offer a payback period of under three years, with ongoing technological improvements expected to shorten this further. "We anticipate a surge in demand for solar + battery solutions in the coming months," Moosa said.
However, he criticised the decision as detrimental to the country's power sector in the long run. The significant gap between the export rate of Rs10 and the Rs50-60 savings per unit from self-consumption will drive more consumers toward battery storage. "As customers realise the benefits of self-storage, many will extend their off-grid hours, reducing demand for DISCOs. This will lead to higher electricity prices for remaining consumers, disproportionately impacting lower-income householdsthe very group these policy changes claim to support," he explained.
Moosa also condemned the lack of consultation with industry stakeholders, stating that abrupt policy changes could destabilise the market. "Equipment supply chains cannot be adjusted overnight. Traders with on-grid inventory will face losses, while prices for hybrid systems and batteries may spike," he said.
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