THIS is with reference to the report ‘Govt has second thoughts on changes to solar policy’ (March 27). Amid widespread concerns over proposed net metering (NM) policy with reduced buyback rates and limitations regarding the sanctioned load, there is, indeed, a need for a balanced, well-informed approach with robust stakeholder input, ensuring policy stability while addressing sectoral challenges.

Pakistan’s energy crisis has driven the shift towards the solar option, but while it cuts bills and curbs fossil fuel usage, there are risks to grid stability as well as the financial stability of power distribution companies (Discos).

While aligning rooftop solar capacity with sanctioned loads may help manage grid congestion, such measures should be guided by holistic technical evaluations and regulatory oversight rather than blanket restrictions.

If strategically integrated and managed, the solar facility can effectively address Pakistan’s energy challenges. By reducing reliance on costly fossil fuels, minimising transmission losses, and easing the burden of high electricity prices, NM enhances both individual and national energy security. A well-implemented NM frame-work can lower consumer bills, stabilise the grid, and curtail peak demand.

Pakistan’s distribution losses in FY23 stood at 22,286 GWh — far exceeding NM exports (482MW) — with an estimated financial impact of Rs734 billion, as highlighted in a study by the Pakistan Institute of Development Economics (Pide).

Instead of restricting NM, the policy-makers should prioritise grid upgrades, regulatory reforms and smart metering for efficient integration.

However, Discos’ aging infrastructure and weak regulatory mechanisms limit their capacity to accommodate NM growth. The absence of both real-time monitoring and hosting capacity analyses (HCAs) tend to increase risks to grid stability. Periodic pre- and post-installation inspections can curb unauthorised capacity additions and power quality challenges.

Systematic HCAs will assess network readiness, prevent transformer overloading, and enable structured solar integration. A phased time of use (ToU) net metering approach, integrated with advanced metering infrastructure (AMI) can balance solar generation with grid demand.

On the other hand, solar energy is also bridging the energy access gap, with four million households (7.4 per cent) relying on solar energy.

While urban consumers benefit from financial incentives for rooftop solar systems, rural households in Sindh, Balochistan and Khyber Pakhtunkhwa (KP) rely on off-grid solar to meet basic energy needs. Policymaking should support decentralised energy solutions, such as community micro-grids, to bridge this gap, particularly in the energy-poor rural regions.

Additionally, Pakistan’s energy planning has historically favoured large-scale independent power producers (IPPs) even though stranded capacity has exceeded 17,799MW.

Unlike utility-scale projects, a rooftop solar systen does not require extensive transmission infrastructure or capacity payments, making it a cost-effective and sustainable alternative.

Thus, reforming the current NM policy requires a long-term, evidence-based approach. What we need to avoid at all costs is short-term financial considerations.

Shafqat Hussain Memon
Jamshoro

Published in Dawn, April 18th, 2025