Business leader and former President of the Islamabad Chamber of Commerce and Industry (ICCI), Dr Shahid Rasheed Butt, said on Wednesday that the revised solar policy is a blunder on the part of the government. He said the decision has negatively affected consumer confidence and market stability. It has also increased public distrust, which will cost the government billions of rupees.

Shahid Rasheed Butt said that investments worth tens of billions are being wasted due to the unilateral decision of the government that has sent a very wrong signal to investors.

He said today that the move, supported by false information, will impede the nation’s progress in renewable energy.

He observed that changing the purchasing price of electricity and transitioning from net metering to gross metering for rooftop solar installations has sparked outrage nationwide.

The government has drastically reduced the financial benefits for those with rooftop solar panels. Now, they will get Rs10 per unit instead of Rs 27, which is disappointing.

The business leader informed that, under net metering, consumers were previously credited for the surplus electricity they fed back into the grid, reducing their overall energy bills.

However, the new gross metering approach compensates consumers at a lower rate for all the solar power they generate. At the same time, they continue to purchase electricity from the grid at standard rates.

He said the government’s justification for these changes centres on the financial burden existing net-metering consumers place on the electricity tariff. They argue that these consumers contribute to increased costs for those reliant on the grid.

Policymakers have ignored the fact that the shift will discourage investment in solar energy and hinder Pakistan’s transition to renewable energy sources.

The new policy reduces incentives by 63% and increases electricity costs by 550% when buying from the national grid, which is unacceptable. The controversial decision has generated significant controversy and created a large financial disparity.