The Overseas Investors Chamber of Commerce and Industry (OICCI) has expressed serious concerns over the government’s revised net-billing framework, warning that the new structure significantly reduces financial incentives for solar consumers while leaving deeper structural issues in the power sector unaddressed.
In a recent statement, the chamber noted that the updated policy sharply lowers the buyback rate for surplus solar electricity supplied to the grid. The revised rate has been set at Rs. 8.13 per unit — a reduction of approximately 68 percent from previous levels.
According to OICCI, this drastic adjustment risks discouraging rooftop solar adoption, particularly in urban centers where net metering uptake has been strongest.
Impact on Major Urban Centers
The chamber highlighted that Lahore and Multan together account for more than one-third of Pakistan’s total net metering consumers. With the new pricing structure in place, urban prosumers — households or businesses that both produce and consume electricity — now face a significant shift in cost dynamics.
Under the revised rates, solar users are required to export nearly seven units of electricity to offset the cost of importing just one unit during peak hours. The widening gap between export credits and retail import tariffs has substantially reduced the financial attractiveness of installing rooftop solar systems.
Industry observers note that this change could lengthen the payback period for solar investments, making new installations less appealing for middle-income households and small businesses.
Limited Grid Contribution, Stricter Measures
OICCI emphasized that net metering consumers currently contribute only about 0.32 percent to total grid energy. Despite this relatively small share, they have been subjected to stricter pricing measures aimed at managing the broader financial challenges within the power sector.
At the same time, power distribution companies continue to face mounting losses. According to figures cited by the chamber, distribution losses have exceeded Rs. 399 billion, while theft-related losses have surged to approximately Rs. 734 billion. These losses are attributed to systemic inefficiencies, weak enforcement mechanisms, and declining industrial demand.
The chamber argued that shifting financial pressure onto solar households does not address the root causes of these losses.
Financial Burden on Solar Households
OICCI warned that the growing disparity between low export credits and high import tariffs effectively forces solar consumers to absorb part of the financial burden stemming from inefficiencies within the distribution system.
The revised framework, the chamber suggested, risks sending mixed signals to investors at a time when Pakistan is seeking to expand renewable energy capacity and reduce reliance on imported fuels. Rooftop solar has been viewed as a key component of distributed energy generation, helping to reduce transmission losses and lower peak demand pressures.
By reducing incentives without implementing structural reforms, the policy could slow momentum in the renewable energy transition.
Proposed Structural Reforms
To address underlying issues, OICCI recommended several corrective measures. These include mandating hybrid battery storage systems to help shift peak demand and reduce stress on the grid during high-consumption hours.
The chamber also called for accelerated deployment of Advanced Metering Infrastructure (AMI) and Supervisory Control and Data Acquisition (SCADA) systems. These technologies would enable real-time monitoring, improve billing accuracy, and help control electricity theft more effectively.
Additionally, OICCI proposed ensuring that installed solar capacity aligns with sanctioned load limits. This, it said, would safeguard distribution networks, maintain grid stability, and prevent localized technical imbalances.
Balancing Reform and Renewable Growth
The chamber reiterated its support for sustainable energy development but stressed that reforms must target inefficiencies at the systemic level rather than disproportionately affecting a small segment of consumers.
As Pakistan navigates financial pressures within its power sector, policymakers face the challenge of balancing fiscal stability with renewable energy growth. The future trajectory of rooftop solar adoption may now depend on whether further adjustments are made to restore investor confidence while strengthening grid management and loss control.
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