The Power Division is set to resubmit its proposal to the Economic Coordination Committee (ECC) seeking amendments to the Net-Metering Regulations, including a significant reduction in solar energy buyback rates.

According to a report by Business Recorder, the Cabinet Division has now given the green light for the proposal’s resubmission. The ECC had initially approved the plan on March 13, 2025, but the Federal Cabinet deferred its implementation, opting instead to seek further consultation. With that requirement now met, the Cabinet Division has advised moving forward.

The proposal aims to cap net-metering contracts at five years and slash the buyback rate for solar energy from Rs 27 to Rs 10 per unit.

The Power Division argues that net-metering has already reduced energy sales by 3.2 billion kWh in FY24, resulting in a Rs. 101 billion financial burden and a Rs. 0.9 per unit tariff increase for other electricity users. Looking ahead, the Division projects that by FY34, net-metering could reduce sales by 18.8 billion kWh, adding Rs. 545 billion in costs and pushing average tariffs up by Rs 3.6 per unit. The IGCEP 2025 plan includes 8,000 MW of net-metering additions by FY34, which the Division warns could disrupt least-cost power planning.

In a related development, the Power Division has sought World Bank support for a comprehensive nationwide rooftop solar assessment. The World Bank has agreed to assist through the Electricity Distribution and Efficiency Improvement Project (EDEIP).