Following widespread criticism from net-metering consumers over government-owned distribution companies (DISCOs) failing to credit solar energy units, the National Electric Power Regulatory Authority (NEPRA) informed on Friday that it has initiated legal proceedings against the defaulting utilities. NEPRA confirmed that action has already been taken against DISCOs found in violation of net-metering regulations for withholding due solar credits from consumers.
The regulator further assured that a decision on the matter would probably be announced within the next 15 days.Discos seek fixed charges on solar net metering
During the public hearing on prosumer regulations on Friday, officials from the Power Division gave a short overview of the status of net metering in Pakistan and the renewable of energy transition over the year.
It was discussed that the country’s clean energy mix was 40% in 2015 which has now increased to 55% and is expected to surge further to 90% by 2034. Similarly, on-grid rooftop solar expanded from 5 MW in 2017 with current trends predicting it to reach 14,319 MW again by 2034. The impact on grid stability has been noted to have had some unpleasant effects causing system stress – duck curve as a result of fluctuating grid demand during the day, steep ramps, and voltage back feed strain issues. Further 73% fixed costs and declining grid sales have been shifting the burden on grid customers.
NEPRA officials acknowledged that the net-metering framework, introduced in 2015 to expand the footprint of renewable energy and enable consumers to meet their own electricity needs, was never intended to become a revenue-generation mechanism. However, officials noted that over the past two years the sector has witnessed an exponential, nearly threefold year-on-year increase, with installed net-metering capacity now having reached 6,975 MW, megawatts across the national grid.
Power distribution companies raised concerns during the hearing regarding technical challenges arising from the rapid expansion of rooftop solar. These included declining power factor, voltage fluctuations, transformer thermal stress and accelerated equipment ageing. K-Electric highlighted over-voltage issues affecting net-metered consumers, while GEPCO warned that unmanaged integration of renewable energy could potentially destabilize the system, even risking blackouts if left unaddressed.
Furthermore, it was discussed that solar and off-grid users have been inflating the protected consumer base to 22 million, distorting subsidies and increasing cross-subsidisation.
Despite these concerns, several stakeholders argued that the core issue lies not with solar adoption but with systemic weaknesses in the power sector. Industry representatives stressed that high electricity tariffs and an outdated grid infrastructure are forcing consumers toward self-generation. Rehan Jawed called for the nationwide implementation of the Rs 2.77 per unit relief for grid-reliant consumers and urged the government to formally notify the pricing mechanism, adding that surplus units could even be treated as a form of social contribution.
Experts and policy analysts emphasized the need for long-term planning. Khalid Waleed cautioned that emerging global regulations such as the Carbon Border Adjustment Mechanism (CBAM) would penalize carbon-intensive exports, making renewable energy adoption essential for Pakistan’s export competitiveness by 2030. Participants underscored that net-metering should be viewed as a national asset and called for investments to be redirected toward grid modernization and energy storage rather than restricting solar growth.
