PM Shehbaz Sharif Intervenes in Solar Net Billing Controversy to Protect Consumer Rights

Islamabad (HRNW)- Prime Minister Shehbaz Sharif has officially taken notice of the widespread public outcry regarding the transition from net metering to a net billing system, directing the Power Division to develop a comprehensive strategy that balances the rights of solar and grid consumers. Presiding over a high-level meeting in Islamabad, the Prime Minister emphasized the necessity of safeguarding existing contracts for the current 466,000 solar prosumers. To achieve this, he has ordered the immediate filing of a review petition to ensure that legal protections are provided for agreements already in place, preventing a sudden shift in financial terms for those who have already invested in renewable energy.

The move comes in response to the National Electric Power Regulatory Authority’s (NEPRA) recent notification of the “Prosumer Regulations 2026,” which seeks to replace the unit-to-unit adjustment of net metering with a value-based net billing mechanism. Under the new regulations, any excess electricity generated by domestic, agricultural, or industrial solar setups—up to a capacity of one megawatt—would be purchased by licensed companies at the national average energy purchase price rather than being swapped for grid units at a one-to-one ratio. The government maintains that this shift is essential to prevent the financial burden of solar subsidies from being shifted onto nearly 37.6 million grid-dependent consumers who do not have solar installations.

During the session, which was attended by Deputy Prime Minister Ishaq Dar and other senior federal ministers, the Prime Minister reiterated that while energy sector reforms are vital for the sustainability of the national grid, they must be implemented fairly. The new policy proposes that agreements between prosumers and power companies be valid for five years, with monthly bill adjustments and the possibility of carrying over credits to subsequent cycles. As the Power Division prepares its review petition and a revised strategy, the government aims to find a middle ground that maintains the viability of the national energy infrastructure without undermining the significant private investments made in Pakistan’s green energy sector.

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