Sunday, April 12, 2026

PESCO proposes fixed charges for solar users

The Peshawar Electric Supply Company (PESCO) has suggested introducing new fixed charges for solar consumers using the net-metering system, arguing that these users depend on the national grid during periods of low solar power generation but contribute little to its maintenance.

Under the proposal, the charges would be calculated based on either the consumer’s connected load or the share of electricity units drawn from the grid.

PESCO says that while net-metering users rely on the grid when their solar panels produce less energy, they avoid paying for its upkeep, placing a greater financial burden on non-solar consumers and reducing revenues for distribution companies as rooftop solar installations increase.

The company also pointed out technical challenges, including voltage instability and the need for additional investment to maintain grid reliability. PESCO maintains that fixed charges for solar consumers are necessary to keep the system financially sustainable and ensure fair cost recovery.

At the same time, the National Electric Power Regulatory Authority (NEPRA) is reviewing significant changes to the country’s solar net-metering policy.

According to officials in the Power Division, NEPRA plans to lower the buyback rate for surplus solar electricity from Rs23 per unit to Rs10, and may eventually phase out the buyback system entirely, which would end payments for excess power sent to the grid.

Authorities claim that the current policy has driven up overall electricity costs for grid users as more homes and businesses shift to solar energy. Solar producers have reportedly received Rs125 billion so far, further straining the national grid’s finances.

The proposed policy revisions are expected to stir debate among solar users, energy experts, and consumer advocates as Pakistan works to balance renewable energy expansion with grid stability and fair cost distribution.