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The central government has mentioned that less than half a million prosumers are creating a financial strain of Rs270 billion (Rs2.87 per unit) on 38.5 million electricity users who do not participate in net metering in 2026. According to current rules, this burden is expected to increase to Rs628 billion (Rs5.36 per unit) by 2034, with a total effect estimated at Rs4.6 trillion.

In Pakistan, approximately 0.4 million prosumers—less than one percent of the nation’s 39 million electricity users—are creating a financial strain of Rs270 billion on over 99 percent of non-net metering consumers in 2026, according to officials from the Power Division during a public hearing on the draft Prosumers Regulations 2025.

During the public hearing held on Friday at the National Electric Power Regulatory Authority (NEPRA) regarding the proposed Prosumers (Net-Metering) Regulations 2025, which was led by NEPRA Chairman Waseem Mukhtar, officials from the Power Division shared information indicating that the swift and largely uncontrolled expansion of rooftop solar installations is causing tariff imbalances, creating grid instability, and increasing costs for non-solar users. Hundreds of stakeholders representing net-metering consumers participated in the hearing, expressing worries about the suggested changes to the prosumers regulations; however, there was no presence from non-net metering consumers.

Officials stated that fewer than half a million prosumers are imposing a cost of Rs270 billion (Rs2.87 per unit) on over 38.5 million non-net metering consumers in 2026. Under current regulations, this burden is projected to rise to Rs628 billion (or Rs5.35 per unit) by 2034, resulting in a total (FY25 to FY34) impact of Rs4.6 trillion. If the proposed adjustments to net-metering rules are implemented, the overall effect on grid consumers would decrease significantly to Rs1.38 per unit by 2034, or a cumulative (FY25 to FY34) impact of Rs2.134 trillion. They cautioned that 73 percent of power sector costs are fixed, and as higher-income consumers leave the grid via rooftop solar installations, the remaining users—primarily middle and lower-income households—are forced to cover an increasing portion of capacity charges, transmission expenses, and subsidies.

Officials added that the growth of grid-connected solar energy is uneven, with 82 percent (382,534 out of 466,506) of net-metering users located in 11 major cities, primarily in affluent areas. NEPRA officials stated that the net-metering system, launched in 2015, was created to encourage renewable energy use and enable consumers to fulfill their own electricity requirements, not to serve as a way to generate income or transfer costs across the system. The officials also mentioned that the total installed net-metering capacity has now climbed to almost 7,000 megawatts nationwide, compared to just 5 MW in 2017, and is expected to rise beyond 14,000 MW by 2034.

Authorities also pointed out technical dangers and noted decreasing power factors, voltage variations, transformer overheating, and faster equipment wear. K-Electric mentioned over-voltage issues impacting even solar energy users. GEPCO, representing all the state-owned DISCOs, cautioned that improper renewable energy integration could ultimately cause system instability and raise the chances of power outages.

Authorities also highlighted the ‘duck curve’ phenomenon, in which daytime solar power production significantly lowers grid demand, followed by sharp increases in the evening that put pressure on generation and transmission infrastructure. Some net-metering advocates, while opposing the suggested amendment, stated that consumers were pushed towards solar energy due to costly rates and an obsolete grid. Nadeem Afzal Chan, a leader from the Pakistan People’s Party, urged for wider public discussion and warned that he would take legal action if the regulations imposed penalties on solar users.

Industry advocates claimed that distribution firms were postponing net-metering connections and alleged that utility companies were attempting to safeguard outdated systems rather than modernizing them. Although net-metering users had concerns, NEPRA officials stated that unregulated net-metering is no longer viable, as it essentially shifts the expenses of the power system onto consumers who cannot afford solar energy, transforming an environmentally friendly policy into a regressive financial responsibility.

Provided by SyndiGate Media Inc.Syndigate.info).