Sardar Owais Ahmed Khan Leghari Defends Solar Net-Metering Changes as Shehbaz Sharif Orders Policy Review

Pakistan’s power minister on Thursday defended recently introduced changes to rooftop solar net-metering regulations, stating that high financial returns for a relatively small group of consumers were placing an unfair burden on millions of other electricity users. The remarks came a day after Prime Minister Shehbaz Sharif directed authorities to review the revised rules.

The controversy stems from amendments to the country’s net-metering framework, which allows households and businesses with rooftop solar systems to export surplus electricity to the national grid. Under the updated compensation structure introduced by the National Electric Power Regulatory Authority, consumers must pay full tariffs for electricity drawn from the grid while receiving reduced, market-linked rates for electricity supplied back to the system.

Government Defends Pricing Reforms

Addressing the National Assembly, Leghari said only 6,000 to 7,000 megawatts of Pakistan’s estimated 22,000 megawatts of installed solar capacity falls under the net-metering regime, benefitting approximately 466,000 consumers out of nearly 35.5 million electricity users nationwide.

He argued that existing incentives allowed solar users to achieve disproportionately high returns compared with other investment options. According to the minister, some net-metering users were earning returns of around 50% due to savings generated through electricity credits, significantly higher than the roughly 17% returns earned by independent power producers and about 8% returns on bank deposits.

Leghari also questioned the pricing structure under the earlier system, stating that while solar electricity could be generated at approximately Rs5 per unit, it was being exported to the grid at rates close to Rs27 per unit. He noted that the national grid’s average electricity procurement cost stood at roughly Rs8.31 per unit, raising concerns about pricing sustainability.

Returns to Remain Attractive Despite Changes

The minister said the revised framework is expected to reduce returns for solar consumers to around 37%, maintaining that rooftop solar installations would remain financially viable even after the adjustment.

He added that the regulatory changes were intended to introduce fairer pricing and reduce cross-subsidies borne by the wider consumer base. According to Leghari, lowering electricity costs for the broader population — potentially by up to Rs1.50 per unit — would justify the policy shift.

Prime Minister Seeks Safeguards for Existing Consumers

Leghari’s defence follows directives from Prime Minister Shehbaz Sharif instructing the government to file a review petition against the revised regulations. The prime minister emphasised the need to safeguard existing consumer agreements while ensuring that the updated policy does not transfer financial pressure onto non-solar electricity users.

The ongoing review highlights the government’s effort to balance renewable energy expansion with grid stability and equitable tariff structures as solar adoption continues to grow across the country.