The federal government has chosen to phase out solar net metering in favor of a gross metering scheme in order to discourage solar use and compel users to return to significantly more expensive grid power.
The Ministry of Energy has warned the International Monetary Fund (IMF) that net metering is reducing the income of distribution businesses. According to the Express Tribune, gross metering will compel users to sell all of their rooftop-generated power to the grid and then purchase back only what they need.
The government’s plan to implement gross metering next fiscal year is in reaction to a rising number of homes converting to solar energy to avoid pricey grid power, which, with additional taxes, costs roughly Rs. 62 per unit.
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The energy ministry attempted to explain to the lender that installing solar panels had reduced grid electricity consumption while increasing idle capacity payments and quarterly price adjustments. In the first 10 months of this fiscal year, 6,800 MW of solar panels were imported.
The IMF identified idle capacity payments as a key contributor to growing electricity prices and suggested revising the captive power generating policy, which permits industries to use cheaper gas for in-house electricity. The government may end its captive gas program next month, forcing industry to rely on more expensive grid energy.