Net-Metering Solar Pakistan Capacity Surpasses 4 GW
Pakistan has achieved a remarkable milestone in its renewable energy sector, with the National Electric Power Regulatory Authority (NEPRA) reporting that the country’s net-metering solar capacity has surpassed 4 GW, reaching 4,153 MW of installed capacity. This achievement is a testament to the growing adoption of solar energy across the nation, with 42,744 consumers benefiting from this capacity spread across 11 distribution companies.
Read more about this achievement on PVknowhow.
Net-Metering Solar Pakistan Capacity by Distribution Company
In a detailed breakdown provided by NEPRA, Lahore Electric Supply Company (LESCO) leads the charge with 1,467 MW, followed by Multan Electric Power Company (MEPCO) at 718 MW, and Faisalabad Electric Supply Company (FESCO) at 665 MW. Other notable contributors include Islamabad Electric Supply Company (IESCO) with 312 MW and Gujranwala Electric Power Company (GEPCO) at 290 MW.
The distribution of solar capacity further extends to Hyderabad Electric Supply Company (HESCO) with 176 MW, Peshawar Electric Supply Company (PESCO) at 171 MW, Sukkur Electric Power Company (SEPCO) with 112 MW, and Quetta Electric Supply Company (QESCO) with 94 MW. Additionally, K-Electric and Tribal Electric Supply Company (TESCO) have contributed 87 MW and 61 MW, respectively.
Growth of Net-Metering Solar Pakistan Systems
The rapid expansion of net-metering solar capacity, which grew from 1,417 MW in June 2022 to 4,153 MW by June 2024, is partly attributed to the State Bank of Pakistan’s (SBP) Temporary Economic Refinance Facility (TERF). This concessional loan program for the industrial sector significantly boosted installations by including solar net metering.
However, the withdrawal of the facility by the SBP in June 2024 has resulted in a notable decline in new applications for net-metering connections, posing challenges for sustained growth.
Challenges and Solutions for Net-Metering Solar Pakistan
Despite the encouraging progress, the net-metering policy in Pakistan is not without its challenges. Rising electricity costs and financial strains on distribution companies are key concerns. In response, NEPRA has proposed amendments to the net-metering regulations. A significant proposed change is the reduction of the compensation rate for excess solar power supplied to the grid, from Rs 19.32 ($0.076) per unit to Rs 9 per unit, excluding taxes.
These amendments aim to address the financial impact on distribution companies while continuing to support solar energy adoption. NEPRA is currently in the process of reviewing stakeholder feedback on these proposed changes, which will shape the future of net metering in Pakistan.
For more insights into Pakistan’s solar energy landscape and future projections, visit PVknowhow.
