Solar policy backlash

2026-02-12 - 23:56

THE government’s shift in policy regarding rooftop solar energy users has raised serious concerns about the continuity of its energy policies. Prime Minister Shehbaz Sharif’s intervention, directing the Power Division to seek a review of the NEPRA’s revised rules for net-metered solar consumers, comes after significant backlash from both political allies and opposition lawmakers. While the Prime Minister’s attention to this issue is welcomed, it must be more than a mere taking notice. It must result in a genuine reassessment of the government’s approach, with a firm commitment to upholding contracts and fostering clean energy investments. Over the last few years, the people were encouraged to invest in solar energy by offering incentives for net-metering systems, where households and businesses could generate their own electricity and sell surplus power back to the grid. This policy not only promised financial savings but also aligned with broader environmental goals, reducing reliance on expensive imported fuel and contributing to a cleaner energy mix. However, the recent revision of these regulations, which shifts existing and future solar consumers from net metering to net billing, undermines the very foundation of this progressive policy. The new terms, which slash the credit duration for solar exports from three months to just one, impose severe limits on solar capacity and devalue exported solar power by pricing it at a fraction of what is charged for imported grid electricity, are a step backward. What is particularly troubling is the double standard applied to contracts. While the government consistently defends and honour its agreements with IPPs, contracts made with individual solar consumers are being disregarded. These citizens, who trusted government policies and invested in solar infrastructure, are now seeing their agreements undermined by a policy shift. This inconsistency in policy application creates an atmosphere of uncertainty that could discourage future investment in solar energy, a sector that is vital for energy security and environmental goals. The PM’s intervention is a necessary first step, but it cannot remain confined to a mere review. The government must ensure that solar consumers are fully protected as per their original contracts. Those who took the initiative to embrace solar energy should not bear the brunt of sudden policy shifts. Moreover, the government must reconsider its decision to impose fixed charges on residential electricity consumers as these amount to further burdening them.