WATCH: Power minister clears the air over solar net metering controversy

• Minister says panic being created in market unnecessarily.
• Govt reportedly plans to replace net metering with gross metering.
• Recommendations tabled to end unit-for-unit formula.

Federal Minister for Energy Awais Ahmad Khan Leghari on Tuesday clarified the controversy surrounding net metering for solar power, saying that it is unfortunate panic is being created in the market unnecessarily.

Last week, reports emerged that the federal government has planned to replace solar net metering with gross metering for rooftop solar panels which would extensively reduce the financial benefits of in-house power generation.

The sources said that recommendations have been tabled to end the unit-for-unit formula under the gross metering, whereas, the prices of electricity units given to the national grid would be halved under the new policy.

It was also learnt that the government will purchase electricity units from the rooftop solar panel owners at the price set by the Central Power Purchasing Agency (CPPA).

On the other hand, the power distribution companies (Discos) will sell the electricity to the consumers at the government rates.

The sources added that Pakistan also held talks with the International Monetary Fund (IMF) regarding its gross metering policy. The new policy is likely to be presented before the federal government and the Council of Common Interests (CCI) for its final approval.

Here is the energy minister's explanation about the ongoing controversy: