Pakistan, July 16 -- The federal government is considering a major reduction in solar energy buyback tariffs under the net-metering system to save around Rs4.3 trillion ($15.1 billion) over the next decade. Currently, domestic, commercial, and industrial solar producers sell electricity to the grid at Rs27 per kilowatt hour (kWh), which the government says is unsustainable in the long run.

Authorities from the Ministry of Energy are preparing a revised solar policy that proposes slashing the buyback rate by more than 60%, bringing it down to Rs10 per kWh. This change aims to remove existing disparities, as large-scale solar plants like Quaid-e-Azam Solar Power (Pvt.) Ltd. sell power at much lower rates, ranging between Rs9 and Rs11 per k...