Federal Government’s Upcoming Changes to Solar Net-Metering Policy
The federal government is set to revise the Solar Net-Metering Policy, focusing on adjusting the buyback rate for excess energy and extending the payback period. These changes aim to better align with the average energy cost and address various financial and technical challenges.
Key Proposed Changes
Buyback Rate Adjustment:
The buyback rate for net-metered energy will be adjusted to match the average energy cost.
Extended Payback Period:
The payback period for net metering will be increased from three to five years.
Discussions and Recommendations
These proposals were discussed in an online seminar organized by the German development agency GIZ, as reported by Business Recorder. Key points from the seminar include:
Current Net-Metering Practices:
Excess energy units from net-metered systems are carried forward for three months before being converted into monetary value and adjusted against peak consumption.
Proposed Adjustments:
Some experts and Distribution Companies (DISCOs) suggested limiting the carry-forward period to one month to encourage self-consumption and reduce the installation of oversized solar PV systems.
Establishing a central cell within DISCOs to oversee net metering activities, including rooftop solar PV integration and hosting capacity analysis, was recommended.
Technical and Financial Challenges
Installed Capacity:
By April 2024, Pakistan had installed 2,000 MW of net-metered capacity with over 130,000 systems generating 3 TWh of energy annually.
Challenges Highlighted:
Issues such as high consumer voltage, distribution transformer overloads, and increased reverse power flow due to unauthorized rooftop solar installations were discussed.
Proposed Solutions
Capacity Limit Adjustment:
Reducing the net metering capacity limit to match the sanctioned load, similar to practices in Bangladesh, Saudi Arabia, and India, to prevent transformer overloads.
Smart Meters and Monitoring:
Implementing smart meters and enhanced network monitoring to manage the impact of net metering systems more effectively.
Hosting Capacity Analysis:
DISCOs are encouraged to use GIS mapping for hosting capacity analysis to provide transparent information about their network’s ability to integrate solar PV.
Tariff Mechanism and Fixed Charges:
Proposing a suitable tariff mechanism and fixed charges for all consumers to ensure a balanced approach.
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Federal Government’s Upcoming Changes to Solar Net-Metering Policy
Conclusion
The proposed changes to the Solar Net-Metering Policy aim to address the evolving needs of the solar industry and consumers, while also tackling technical and financial challenges. The adjustments are designed to create a more balanced and sustainable approach to solar energy integration in Pakistan.
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