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Articles for tag: Circular debt, Electricity, Energy, NEPRA, net metering, Pakistan, Renewable energy, solar

July 2, 2026

Frontpage.dev

Pakistanis Have Installed 51 GW of Solar as Citizens Bypass a Grid That Has Failed Them

Pakistan's estimated installed solar capacity reached 51 gigawatts by early 2026 — driven almost entirely by households and businesses self-financing panels to escape record electricity prices and chronic outages — as the country's power sector circular debt stood at Rs1.84 trillion. The government has now changed the rules, replacing unit-for-unit net metering with a less favourable net billing system.

December 22, 2025

News Desk

What is gross metering and how will it affect solar consumers?

Technicians install solar panels on the roof of a factory in Karachi on July 2, 2025. — AFP New five-year contracts, with possibility of extension. Proposed new purchase tariff to apply to new installations. Rooftop solar results in a 3.2 billion reduction in grid sales. Islamabad: Amid the prevailing solar boom in the country, the National Electricity Regulatory Authority (Nepra) has advised a major policy change that seeks to replace the existing metering system with a gross metering mechanism for solar rooftop consumers, citing an increasing financial burden on conventional grid users. The News reported on Monday. According to the

December 1, 2025

News Desk

Solar versus fossil fuel-based power generation dilemma

The country has agreed to achieve a 60% share of renewable energy, but is demotivating under the influence of IPPs Islamabad: Pakistan has a solar energy potential of 40 gigawatts, according to the World Bank. This can help increase the share of solar energy to 60% in the energy mix by 2030. Historically, Pakistan has depended on fossil fuels, especially oil and natural gas, to generate electricity. However, due to advances in solar technology and increased supply, low prices have shifted the energy mix paradigm more towards renewables in recent years. Therefore, the government has developed the net metering policy,

November 23, 2025

News Desk

The ministry says rooftop solar generation will exceed grid demand at some nodes next year

Pakistan’s rooftop solar generation will, for the first time, exceed the energy demand on the country’s electricity grid during the day in some major industrial areas next year, a senior government official said Reuters. The outlook reflects a record boom in the nation’s solar panel installations in recent years, which has led to lower emissions and reduced power bills for some, but also disrupted the finances of debt-laden utilities due to a prolonged decline in demand for electricity from the grid. “Pakistan will face negative demand from the grid during certain hours of the day because the solar power behind

November 5, 2025

News Desk

Discos are looking for fixed solar charges

Nepra officials warned Gepco about illegal installation of Advanced Metering Infrastructure (AMI) in small meters. They said the company is installing AMI without regulator approval and even without data backup. Photo: archive Islamabad: Electricity distribution companies (DISCOs) have called for flat solar net metering charges in an apparent move to recover losses. Regarding fixed charges on units of electricity exported by net metering users to the extent of transmission and distribution charges, the National Electricity Regulatory Authority (Nepra) may impose such a levy, Multan Electric Power Company (Mepco) and Gujranwala Electric Power Company (Gepco) said in a public hearing on

November 4, 2025

News Desk

Citizens transport 50 GW of solar power as costly fossil fuel demand shrinks

Households bear expensive LNG import costs as industries move away from high-cost fuel, but reliance on government remains After decades of dependence on imported and local fossil fuels, Pakistan is turning to cheaper and cleaner options. In FY24, shrinking energy supply and declining consumption defined Pakistan’s energy story. Weak demand and rising fuel costs are leading to a gradual shift away from dependence on fossil fuels. Economic pressures are reshaping energy use The Pakistan Energy Market Review (PEMR) 2025 by Renewables First reveals that Pakistan’s primary energy supplies fell for the second consecutive year in 24 years, while final energy

November 2, 2025

News Desk

Government mulls reduction in solar net metering buy-in rate above Rs 10 per unit

A worker kneels next to one of the solar panels above the water surface of the Sirindhorn Dam in Ubon Ratchathani, Thailand, April 8, 2021.— Reuters Rooftop solar reduces grid sales by 3.2 billion units, costing Rs 101 billion in revenue. The Power Division warns that losses could reach Rs 545 billion by FY2034. PM orders review of solar power purchase rate and tariff implications. Islamabad: The government is considering reducing the buy-in rate for solar net metering from Rs 22 per unit to around Rs 11.30 per unit after estimates showed that the scheme has started imposing a heavy

October 17, 2025

News Desk

Government and IMF consider raising VAT, withholding tax on solar panels and internet services

The International Monetary Fund (IMF) building in Washington, USA. — AFP/File Measures are being implemented for the lack of revenue, the inability to cut costs. It is proposed to increase the withholding tax on internet service up to 20%. The emergency measure proposes to raise the GST on solar panels to 18%. ISLAMABAD: After rejecting proposals to increase tax rates on fertilizers and pesticides, Pakistan and the International Monetary Fund (IMF) are considering alternatives — raising taxes on rooftop solar panels, internet services and other sectors — as emergency measures in case of revenue shortfalls. The News reported on Friday.

September 25, 2025

News Desk

The shine of solar energy as China extends the installation of the desert

An ocean of blue solar panels fluttering from the dunes of Oris of the Kubuqi desert of inner Mongolia, a glamorous example of the almost unthinkable transition to China’s mammoth. Even when other countries have put the brakes on the desert solar works for economic or technical reasons, China – the largest greenhouse gas emission in the world – has plowed forward. The desert solar plants are a key part of China’s designs to reach carbon neutrality by 2060. “Before, there was nothing here … it was a desert,” Kubuqi Local Chang Yongfei said AFP As he himself did to

July 20, 2025

News Desk

The demand for electricity in a grid weakens as the Solar intake FY25 Power Development

Employees washing the 300 kWp photovoltaic photovoltaic system after its installation at Nishtar Medical University and Multan Hospital on December 4 2022. – App The average fuel cost of power production is reduced by 2% during the year. Industrial users are increasingly shifting to confidence: Expert. Consumers continue to be burdened through capacity payments. Karachi: Energy production remained largely flat in the financial year 2024-25, as the growing adoption of solar energy and reduced industrial activity continued to suppress the demand for electricity in a grid, The news reported on Sunday. Official figures show that total electricity production reached 127,160

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