Fixed Charges Imposed on Solar Consumers in Peshawar Amid Policy Changes

The Peshawar Electric Supply Company (PESCO) has proposed introducing new fixed charges for solar consumers using the net-metering system, arguing that such users depend on the national grid during periods of low solar production but contribute little to grid maintenance. The company claims that this imbalance shifts the financial burden to non-solar consumers and reduces revenue for power distribution companies as rooftop solar adoption increases.

According to PESCO’s proposal, the fixed charges would be calculated based on either the consumer’s connected load or the proportion of electricity units drawn from the grid. The utility also cited technical challenges such as voltage fluctuations and the need for additional investment to stabilize the grid as solar usage grows. PESCO maintains that implementing fixed charges for net-metering consumers will help ensure fair cost recovery and maintain financial stability across the power network.

Meanwhile, the National Electric Power Regulatory Authority (NEPRA) is reviewing significant changes to Pakistan’s solar net-metering policy. Sources within the Power Division revealed that NEPRA plans to reduce the buyback rate for surplus solar energy exported to the grid from Rs. 23 per unit to Rs. 10. In a later phase, the authority may consider eliminating the buyback system altogether, meaning consumers would no longer receive compensation for excess power sent to the grid.

Officials argue that the current net-metering policy has contributed to rising electricity costs for conventional grid users, as more households and businesses transition to rooftop solar systems. So far, solar power producers have reportedly been paid around Rs. 125 billion, adding further financial strain to the national grid.

These proposed reforms are expected to generate intense debate among solar consumers, energy experts, and policymakers. As Pakistan works to expand renewable energy adoption, the challenge lies in maintaining a balance between encouraging sustainable energy production and ensuring grid stability, fair cost distribution, and financial viability for all electricity users.