Govt mulls slashing photo voltaic panel tariff to Rs7.5-11 per unit

Workers busy in installation of solar panels on the top roof of a house at Bacha Khan Chowk in Peshawar on April 17, 2024. — APP
Employees busy in set up of photo voltaic panels on the highest roof of a home at Bacha Khan Chowk in Peshawar on April 17, 2024. — APP
  • Govt considers aligning tariffs with falling panel prices.
  • New charges could cut back rooftop photo voltaic installations.
  • IMF raises considerations on photo voltaic over grid use.

ISLAMABAD: The federal authorities is considering a major discount within the tariff for rooftop photo voltaic panels, decreasing it to Rs7.5-11 per unit from the present fee of over Rs21 per unit beneath the web metering system for electrical energy provided to the nationwide grid.

Proper now, The Information reported, two models generated by means of roof photo voltaic panels are equal to at least one unit of grid electrical energy.

The buyback tariff from photo voltaic customers could also be introduced all the way down to Rs7.5-11 per unit in view of the large decline in photo voltaic panel costs. In return, customers utilizing roof photo voltaic panels could be supplied with electrical energy from the nationwide grid at Rs60 per unit through the night-time or peak hours.

“Below the brand new state of affairs, six models to be generated by means of roof photo voltaic panels could be equal to at least one unit of grid electrical energy. This may lower the pattern of putting in photo voltaic panels on roofs by customers as it’s aggravating the capability funds challenge,” a senior official of the Power Ministry informed The Information.

The IMF, in a current interplay with the federal government functionaries, additionally expressed reservations concerning the growing utilization of solarised electrical energy within the nation and confirmed concern over the reducing utilisation of grid electrical energy.

The worldwide lender demanded the federal government improve the demand for utilisation of the grid electrical energy.

In keeping with the lately launched examine, titled ‘The Nice Photo voltaic Rush in Pakistan’, the nation imported round 15GW photo voltaic panels price $2.1 billion from China over the previous fiscal 12 months.

Contributing to this transition is the elevated electrical energy tariffs — up by 155% over three years — driving high-consumption households and industries to shift in the direction of photo voltaic power options, says the examine.

In the meantime, the official mentioned that Okay-Electrical obtained the bid of three.1 cents per unit for its photo voltaic plant and the federal government is pondering to convey down the photo voltaic panel tariff at near the bid for which the federal government would method Nepra.

“The individuals utilizing photo voltaic panels will probably be supplied with electrical energy at Rs60 per unit throughout night time or peak hours. They’re at present getting electrical energy from the grid at Rs42 per unit.”

The IMF, on the time of talks for the mortgage programme in 2023, had earlier been sensitised that the nation’s nationwide grid was at present offering the service of storing electrical energy to rooftop photo voltaic customers.

If the patron has a roof photo voltaic system indifferent from the nationwide grid, they must set up enormous batteries to retailer photo voltaic power for consumption throughout night-time.

The per unit price they might bear is predicted to be 20 cents, equal to Rs60 per unit.

Authorities earlier wished the introduction of gross metering as an alternative of internet metering.

Below the gross metering system, a client is compensated at a set feed-in tariff for complete models of photo voltaic power generated and exported to the grid (as measured by a unidirectional gross meter).

One should pay a retail provide tariff to the facility distribution firm for energy consumed from the grid. Whole photo voltaic era is measured by a bi-directional meter, whereas complete energy is imported by the unidirectional meter.

Nepra has lately obtained many complaints from customers throughout the nation that DISCOS and Okay Electrical aren’t entertaining the functions of putting in internet metering programs. Nepra to this impact issued a present trigger discover to the KE for internet metering violations.

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