The battle over solar power pricing

ISLAMABAD: Net metering, also referred to as net energy metering (NEM), is an electricity billing method enabling consumers generating their own power to utilise it at any time, rather than solely when it’s generated. It involves customers with solar panels transferring excess electricity they produce to the grid, receiving credits from the utility company on their electric bill. When solar panels generate more electricity than consumed, the surplus power flows back to the grid. According to the World Bank, Pakistan boasts a solar power potential of 40GW and aims to source 20% of its electricity from renewables by 2025. Historically dependent on fossil fuels, especially oil and gas, for power generation, Pakistan’s energy mix has seen shifts in recent years. As per the Pakistan Bureau of Statistics (PBS) data from 2020, fossil fuels constituted roughly 63% of total power generation, followed by hydropower at 29%, nuclear energy at 5%, and renewable energy at approximately 3%. The government has endorsed the Alternative and Renewable Energy Policy 2019, offering incentives and support for renewable energy ventures.