The federal government is preparing to transition from the current net metering system to a net billing framework for solar power, as net-metered solar installations across the country have reached a capacity of 2,500 megawatts.

The development was disclosed during a meeting chaired by Federal Minister for Energy, Sardar Awais Ahmad Khan Leghari, at the Private Power and Infrastructure Board (PPIB) office. The session focused on the proposed changes to the solar energy framework.

Minister Leghari clarified that net metering will not be scrapped entirely, but will be modified to enhance grid stability. He explained that the rapid expansion of the system now requires adjustments, including the potential introduction of dynamic energy pricing. This would link unit purchases to fluctuating energy prices, allowing for automatic rate adjustments.

The minister also highlighted several recent government initiatives, including the cancellation of 9,000 MW of expensive power projects and the imposition of levies on captive power users to encourage their shift to the national grid. Since June 2024, a cross-subsidy of Rs. 174 billion has helped reduce industrial power tariffs by up to 31 percent, while tariffs for other consumer categories have dropped by 14 to 18 percent.

Leghari noted that the government currently has 7,000 MW of surplus capacity, which can be offered to industrial and agricultural consumers at competitive rates of 7 to 7.5 cents per unit, without the need for subsidies.

He emphasized that these reforms are part of a broader energy strategy aimed at modernizing the national grid and improving overall system efficiency. As a result, significant changes are expected in solar electricity production to ensure better grid management in the future.