No Plans to End the Net Metering Policy

Solar panels are a hot topic nowadays, especially as prices continue to drop. Government policies also encourage people to switch to solar energy and has no plans to end the Net Metering policy at this time. Policies like net metering and schemes such as the CM Punjab Solar Scheme for Farmers have been popular in order to increase the use of Solar energy.

Recently, there were rumors about taxes being imposed on solar panels, which worried many people. Additionally, there was news about potentially https://www.dawn.com/news/1834564changing the net metering policy to a gross metering system.

Under net metering, solar panel owners use the electricity they generate and send any excessive energy back to the grid, which they can use later. However, under the proposed gross metering policy, all generated electricity would go to the grid, and consumers would buy back the units they need directly from the grid.

The government has no plans to end the net metering policy

This news caused the public tremendous concern, and gross metering became a hot topic. Fortunately, the Federal Minister for Energy, Awais Ahmad Khan Leghari, clarified that the government has no plans to end the net metering policy.

Why Does the Government Want to Introduce Gross Metering?

Let me explain the reasons behind the discussion about changing the net metering policy to a gross metering system. The government’s primary rationale is the significant decrease in the revenues of DISCOs (Distribution Companies) due to net metering.

Previously, people used electricity from the grid and paid their bills accordingly. However, with the increased use of solar panels, the demand for electricity from the grid has decreased. This shift has led to higher costs for unused capacity and adjustments in quarterly electricity tariffs.

In the last ten months, there has been a significant import of solar panels, approximately 6800 MW. This import is due to reduced solar panel prices and increased demand for solar energy. As a result, more people are planning to adopt solar energy.

However, after hearing about replacing net metering with a gross metering system, people have become worried. On the other hand, the government is also concerned because more solar panels mean fewer people using grid electricity and, consequently, fewer electricity bills being paid.

Best Approach

It is essential to consider the financial challenges faced by DISCOs. Green meters help reduce customer electricity bills, affecting their revenue. It is crucial to find a balance that benefits the government and Pakistan’s people. The government must ensure the development of policies that promote renewable energy use. Changing the net metering policy could discourage people from using affordable energy sources.

Conclusion

The government should understand the significance of solar energy. Solar energy can also help us to reduce our dependence on petrol. It is becoming increasingly difficult for people to manage expenses as electricity and petrol prices are at their peak. The government must consider other solutions to improve efficiency, manage demand better, and reduce distribution losses. They must support renewable energy economic developments.