Solar PV Distributed Generation Net Metering in Pakistan (Prospects, Progress & Perspective) 2023

(Net-Metering) has taken off in the Pakistan and an exponential growth has been observed during the last few year. Due to current Government’s “Ease of Doing Business” policy, simplification in the PPIB/AEDB certification regulations the number of business entities working in the net-metering framework are growing steadily.

As of Dec,2023, total net metering-based system commissioned approved by regulator stands more than 100,212 with the cumulative capacity of 1531 MWp contributed by more than 350 AEDB certified installer/vendors. While amazingly 764 MWp out of this capacity (with an increase of 55,000 commissioned project) have been added only within the year 2023 only, while the rest 767 MWp took six years to materialize since first net-metering installation in early 2016. The average system size is approximately 15.3 kWp per prosumer.

GIZ REEE II Project implemented by INTEGRATION (PVT) Ltd has supported PPIB/AEDB util Dec2023 and other stakeholders promoting the net metering in Pakistan. About 67 MWp capacity (4500 systems) are being adding on monthly basis by taking average value of the year 2023.

At one end we are promoting penetration of net metering based SolarPV into the system while other end there are concerns from the DISCOs with respect to revenue losses therefore officials are already in discussions to introduce new policies. The question remains what will be impact to existing or new consumer? Other reason is price reduction in the PV panels. It has been observed substantial increase in number of certified vendors under PPIB regulations more than 400 companies are registered and eligible to clear their Solar panels products easily while importing into to Pakistan from port. This not only creating the competition but also is increasing organizational/documentation work for PPIB to certified new vendors.

What is your expert opinion where this capacity will reach by end of 2024? and what will be expected value by 2025? will any other factors influence for increase or decrease of net metering in Pakistan? will growth remains steady? or sudden change can happen? Although very limited financing of 6% markup available from commercial banks as per SBP RE financing schemes. What will happen if more consumers are having access to SBP RE financing schemes? Please also provide your valuable comments related to any concerns about net metering in Pakistan by all stakeholders (client, vendors, donors, institutions and project developers) Your opinion matters please !

Engr. Asif Farid Renewable Energy Expert-Consultant 03028566393 asiffarid@gmail.com