Pakistan Solar Energy Policy Change And Net Billing Controversy

Recent changes to Pakistan's solar energy policy have sparked significant controversy, particularly with the introduction of the net billing regime, which has replaced the previous net metering system. Under the new policy, consumers will receive lower rates for electricity they sell back to the grid compared to what they pay for electricity they purchase, fundamentally altering the economics of solar investments. As reported by the Tribune, this shift has raised concerns among stakeholders, especially those who heavily invested in rooftop solar technology, as it threatens to slow the momentum gained in solar adoption. A study from the Consortium for Development Policy Research highlighted that net metering had previously created a conducive environment for solar investments, which could enhance consumer welfare and align with stricter environmental regulations in export markets. However, with solar imports declining sharply from $2.2 billion in 2024 to $450 million in the first half of FY26, the fear is that this policy change will adversely impact the economy and hinder progress towards the $100 billion export target.