Desperate times can promote poor decision making, and the steadily worsening economics faced by Pakistan’s electricity system saw the industry regulator approve a retroactive rate cut to net-metered solar installations in February 2026. Public outcry was immediate and political intervention swift, but the policy debacle reveals the real pressure that can come from rapidly scaling distributed generation in a country with soaring electricity tariffs and a falling base of ratepayers
Pakistan’s solar industry started 2026 with a battle on its hands. A long-awaited shift from net metering to net billing was finally approved in February, but implementation quickly descended into chaos. The rapid increase in solar imports from China seen in Pakistan in 2024 – when roughly 16 GW entered the country – continued into …
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