David turner
David turner
5 days ago
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Pakistan’s Solar Policy 2025: Key Updates, Impacts & What You Need to Know

As solar adoption surges across the country, Pakistan’s government has introduced major revisions in its Solar Policy 2025—with a focus on reshaping the net metering model.

As solar adoption surges across the country, Pakistan’s government has introduced Pakistan’s Solar Policy 2025 —with a focus on reshaping the net metering model. While aimed at protecting the national grid and energy infrastructure, the policy changes have sparked widespread discussion among homeowners, businesses, and renewable energy experts.

In this blog, we break down everything you need to know about the latest solar policy, its benefits and drawbacks, and how it affects existing and new solar users.


📜 What’s New in Pakistan’s Solar Policy 2025?

🔻 1. Reduced Buyback Rate (Net Metering Tariff)

Previously, excess solar energy was exported back to the grid at the full retail rate (around PKR 19–27 per unit). Now in 2025, this buyback rate has dropped to PKR 10 per unit, significantly affecting the return on investment for solar system owners.

🔄 2. Gross Metering Replaces Net Metering

Instead of the previous unit-to-unit offset, the new gross metering model calculates imported and exported electricity separately. That means:

  • You’re charged for grid power consumed.
  • You’re credited separately for solar energy exported at PKR 10/unit.

📉 3. System Size Limitations

Homeowners and businesses are now only allowed to install a solar system up to 110% of their sanctioned load (previously allowed up to 150%). This ensures a balance between solar energy production and grid reliability.

⏳ 4. Transition Period for Existing Users

If you already have a solar system with a valid net metering agreement, you’ll continue receiving old benefits (full unit-to-unit offset) until the agreement expires—typically valid for 7 years. After expiration, the new policy will apply.


⚠️ Why Did the Government Introduce These Changes?

  • Grid Stability: Increasing solar exports were causing instability in the national grid.
  • Revenue Losses: Electricity providers (DISCOs) were losing billions due to subsidized solar exports.
  • Equity Concerns: Non-solar users were indirectly bearing the costs of grid maintenance while solar users avoided many charges.

The policy aims to make solar integration more financially sustainable for both the energy providers and the national grid.


🚨 Impact on Solar Consumers

🔧 For New Solar Users

  • Longer payback period (from 3 years to 5+ years).
  • Lower monthly savings due to reduced export compensation.
  • Urged to consider hybrid systems (solar + batteries) for better ROI.

✅ For Existing Solar Users

  • No immediate changes.
  • Current net metering policies remain until contract expires.

💼 For Solar Companies

  • May face slowdown in on-grid system sales.
  • Increased demand for off-grid and hybrid systems expected.

🔋 The Rise of Hybrid & Off-Grid Systems

With net metering benefits reduced, hybrid solar systems—which store excess power in batteries for later use—are gaining popularity. These systems ensure:

  • Power backup during load shedding
  • Self-consumption of solar power
  • Protection from future policy changes

📌 Summary of Key Policy Changes (2025)

FeatureOld PolicyNew Policy 2025
Net Metering ModelUnit-to-unit offsetGross metering (separate billing)
Buyback RatePKR 19–27 per unitPKR 10 per unit
System Sizing150% of sanctioned load110% of sanctioned load
Existing ContractsContinued under old policyShift to new policy post-expiry

🧭 Final Thoughts

Pakistan’s updated Pakistan’s Solar Policy 2025 marks a pivotal shift in how solar energy is integrated into the national power grid. While the changes aim to ensure fairness and grid stability, they also pose challenges for solar adopters—especially those planning grid-tied systems.

To maximize benefits:

  • Consider investing in hybrid systems
  • Calculate your return on investment under the new rates
  • Work with experienced solar providers like Soluxia Energy for optimized designs

Solar energy remains a powerful tool for reducing electricity bills and environmental impact—but smart system planning is more important now than ever.