Solar energy tariffs in Pakistan 2025 – Latest

Are you looking for the latest solar energy tariffs in Pakistan? On this platform, we will keep updated through authentic sources. The Government of Pakistan is planning to reduce solar energy tariffs for rooftop panels from 21 PKR per unit to 7-11.5 PKR per unit under the net metering system. The web desk published this news on Geo News. You can read the complete article at the given link. The IMF (International Monetary Fund) raises its concerns about the solar energy tariffs in Pakistan.
Currently, households and businesses generating electricity from rooftop solar systems can export surplus energy to the national grid at a higher rate, receiving credit against their bills. However, officials argue that this system is creating challenges in capacity payments and reducing reliance on grid electricity.

Solar energy tariffs in Pakistan – Features

• Buyback Rate: Reduction to PKR 7.5–11 per unit for exported solar electricity.
• Grid Supply to Solar Consumers: Rooftop users would purchase electricity from the grid at PKR 60 per unit during nighttime or peak hours, compared to the current PKR 42 per unit.
• Impact: The new rates could discourage widespread adoption of rooftop solar installations, as the cost-benefit ratio would become less attractive.

IMF’s Concerns About Solar Energy Tariffs in Pakistan:

The International Monetary Fund (IMF) has raised concerns about Pakistan’s increasing dependence on solar systems, stating that reduced reliance on the grid threatens overall revenue collection and worsens capacity payment issues. The IMF has urged the government to ensure greater use of grid electricity to stabilise the sector financially.

Challenges in the Implementation of Solar Energy Tariffs in Pakistan:

The National Electric Power Regulatory Authority (Nepra) has received complaints from consumers that certain distribution companies and K-Electric are delaying or rejecting net metering applications. Nepra has issued show-cause notices to address these violations. The transition to a lower buyback tariff will not be simple. There are multiple barriers that the government and regulators must overcome:

• Consumer Backlash
  • Households and businesses that invested heavily in rooftop solar panels did so based on the promise of long-term savings through net metering. A sudden cut in tariff rates may discourage future investments and create mistrust in government policies.
• Regulatory Bottlenecks
  • The National Electric Power Regulatory Authority (Nepra) has received complaints from solar consumers alleging that distribution companies (DISCOs) and K-Electric are delaying or rejecting net metering applications. Such practices not only slow down adoption but also undermine consumer confidence in renewable energy.
• Financial Pressure on Consumers
  • With proposed buyback rates slashed and nighttime grid tariffs jumping to PKR 60 per unit, consumers may face higher overall costs. This imbalance could discourage people from adopting solar energy altogether.
• Grid Reliability Issues
  • Pakistan’s power grid continues to grapple with significant challenges, including line losses, theft, and inadequate infrastructure. Reducing reliance on solar without addressing these systemic weaknesses could leave consumers more vulnerable to outages and inflated bills.
• Policy Uncertainty
  • Constant shifts between net metering, gross metering, and new tariff structures create an unpredictable environment for both investors and consumers. Lack of a stable long-term renewable energy policy is one of the biggest hurdles to sustainable growth.

Benefits of the Latest Solar Energy Tariffs in Pakistan

• Long-Term Grid Stability
  • By adjusting the buyback rates, the government can reduce the financial strain on the national grid and make electricity costs fair for all consumers.
• Encourages Hybrid Solar Systems
  • With lower selling rates, more people are likely to install solar batteries and hybrid inverters to store energy, increasing energy independence during load shedding.
• Supports a Fair Power Distribution System
  • The new tariff system ensures that both solar and non-solar users share energy costs fairly, reducing inequalities in electricity billing.
• Boosts Local Solar Industry
  • As people move toward self-consumption and hybrid setups, demand for locally manufactured panels, batteries, and inverters is expected to rise, benefiting Pakistan’s renewable sector.
• Encourages Responsible Solar Use
  • Instead of selling all excess power, users will be encouraged to utilise solar energy efficiently and rely less on the national grid, which helps balance the overall power supply.

Conclusion – Solar Energy Tariffs In Pakistan

The government’s new solar energy tariffs in Pakistan are aimed at addressing financial challenges in the power sector, especially capacity payments and declining grid consumption. However, the policy shift comes with significant trade-offs. Lower buyback rates may align with global solar price trends. Still, they could also discourage households and businesses from investing in renewable energy at a time when the country desperately needs affordable alternatives.
For Pakistan’s consumers, this could mean fewer incentives to install rooftop solar systems, higher reliance on costly grid electricity, and reduced energy independence. For the power sector, while the change might temporarily stabilise revenue streams, it risks slowing down the momentum of the solar revolution that has been accelerating due to rising grid tariffs.

In the bigger picture, the challenge lies in striking the right balance: supporting the financial sustainability of the national grid without undermining the shift toward clean and affordable energy. Policymakers must ensure that any reforms are rolled out gradually, with transparency and clear communication, so that investors and consumers are not caught off guard.
Suppose Pakistan is to meet its renewable energy targets and provide long-term relief to citizens. In that case, reforms should not only address short-term revenue concerns but also prioritise investments in grid modernisation, promote local solar manufacturing, and offer incentives for clean energy adoption. Only then can the country move towards a more stable, reliable, and sustainable energy future.