The government has shared a proposal with the International Monetary Fund (IMF) delegation to revise electricity tariffs for net metering of solar panel owners, aiming to reduce the cost of purchasing surplus electricity.

Currently, surplus electricity generated by solar panel owners is purchased at Rs. 27 per unit. However, the new plan suggests lowering this rate to approximately Rs. 10 per unit. The IMF, while reviewing the proposal, raised concerns about how the government plans to address the issue of solar panel owners who remain disconnected from the national grid.

The IMF has also flagged the rapid increase in solar installations across the country, warning that this trend could accelerate in the coming months and years, potentially creating challenges for the efficiency and sustainability of the power sector. The government has yet to provide a definitive response to these concerns.

The government has stressed the need to rationalize electricity tariffs to improve the power sector’s efficiency. Officials disclosed that there are 104 power plants operating nationwide, of which 18 are government-owned and 86 are managed by independent power producers (IPPs).

As part of its efforts, the government has already decommissioned five inefficient power plants and renegotiated tariffs with 14 IPPs. Additionally, tariff reductions have been achieved for eight bagasse-based IPPs. Negotiations with the remaining IPPs are ongoing, according to officials.

The government is also exploring ways to utilize fiscal space created by a reduced debt servicing burden, which amounts to Rs. 1.3 trillion.