Pakistan’s Power sector is confronting a crucial time as the adaptation to solar power transits the country’s landscape. On one side, wealthy homeowners who are solar consumers with three-phase meters are using net metering benefits. Net metering helps consumers to lower their electricity bills and generate a return on investment. Whereas, ruler sectors are taking advantage of solar energy to minimize load shedding and frequent power outages. To meet the power challenges, balancing solar growth and grid need in Pakistan is very important.
According to Business Recorder News, trends of solar energy are embraced between elite householders, and rural area solar users urging demands far from the traditional grid. The single-phase electricity consumers are mostly the nationally sanctioned load, which is approximately 10 times greater than industries.
However, this transformation endangers the utility grid stability and worsens socioeconomic differences.
Worldwide, the rise in solar installations has provoked the governments to re-evaluate the incentives, including tax rebates and subsidies. As a result, the government has lowered the buyback rate for surplus power fed into the utility grid. Meanwhile, this decision has induced criticism from the users who installed solar with the hope of recovering their investment costs within 2-3 years.
The latest researchers give hopeful insights towards the effects of a lowered buyback ratio on solar investments. According to the independent IEEFA analyst report, reducing the rate to Rs 15 per unit from Rs 27 per unit would cause only a small increase in recovery periods. Meanwhile, the transformation from net metering to net billing or any further mechanisms could lessen the impact.
Likewise, a report by two Dutch organizations encourages a self-use strategy, showing that shifting gas-based utilization to electrical power for intents like space heating and cooking can keep cost-effectiveness if self-usage levels remain maximum.
These conclusions oppose overall concerns, signifying that investors can still recover the cost with a little more patience. However, with solar surge expected to majorly affect the utility grid, the government should manage this crucial moment and balance the solar integration with utility-scale production to ensure a strong and renewable power landscape.
A middle way would be to introduce lower buyback ratios for those who installed solar in the future, meanwhile keeping existing rates for current systems as long as their license generation is up for renewal. This process needs attentive ideas and calculation but can help a smooth transformation. Moreover, surveying different billing methods, such as net billing and gross metering, can support striking a balance.
The government needs to identify the significant point where roofing solar damages the grid and evaluate the distance from it. Without knowing this, government policies may not be effective. This is important as elite consumers who subsidize low-paid residents are leaving the utility grid first. When they leave, the cost will shift to remaining users or intensify the debt cycle, diminishing government expense reduction attempts. This causes a discussion between haves or have-nots where people who are financially capable of affording solar exist by leaving others with rising prices.
As winter time is near, the government may change the electricity tariffs further. But a temporary change in tariffs is not enough. We require a permanent strategy to avoid difficulties.
Also Read: The Govt of Pakistan Plans To Reduce Electricity Tariffs Up To Rs.12 Per Unit In Next 18 Months
