By S.M. Inam
Prime Minister Mohammad Shehbaz Sharif’s recent interventions in Pakistan’s solar energy sector have cast a revealing light on the country’s ongoing energy debate, highlighting the delicate balance between public interest, policy coherence, and political accountability. In a special session convened in Islamabad to review the new regulations issued by the National Electric Power Regulatory Authority (NEPRA), the Prime Minister made a decisive statement: the cost burden for households using solar panels should not be shifted onto ordinary consumers drawing electricity from the national grid. In a move that was both responsive and precautionary, he also directed a comprehensive review of the proposed solar laws and extended the net metering policy for an additional month, providing temporary relief to a growing constituency of solar users.
While the announcements were welcomed by advocates of renewable energy, they underscore the broader tensions inherent in Pakistan’s energy landscape—tensions between short-term political optics and the long-term needs of a country grappling with structural energy challenges. The significance of these interventions extends beyond political messaging. Over the past two years, electricity tariffs have risen at a rate that has left middle- and low-income households struggling to meet their monthly obligations, transforming electricity into one of the largest components of domestic expenditure. In this context, solar energy has emerged as both an economic necessity and a practical solution. Net metering, a policy that allows households to feed surplus electricity back into the national grid, has encouraged thousands of families to adopt solar systems, reducing their bills while simultaneously easing demand on a grid already under stress.
Proposed changes, including NEPRA’s decision to impose fixed charges on households consuming fewer than 300 units per month, risk undermining these incentives. The paradox is evident: those who conserve energy and rely on self-generation would effectively be penalized, raising a fundamental question about the government’s commitment to promoting energy efficiency and renewable alternatives. NEPRA, while formally an autonomous regulatory body, operates within a governance framework that requires oversight and endorsement from the federal government. This institutional arrangement underscores a central reality: the ultimate responsibility for coherent and equitable energy policy rests with the state. The government’s stance—that solar consumers should not bear the cost of national-grid electricity—is principled in theory, but translating this principle into practice is far from simple.
It demands robust data analysis, inclusive consultation with stakeholders, and a long-term strategic vision that recognizes the multifaceted nature of energy policy. Electricity is not merely a commodity; it intersects with social welfare, environmental sustainability, industrial productivity, and the broader developmental trajectory of the nation. Globally, the adoption of renewable energy is no longer optional; it has become a strategic imperative for reducing dependence on fossil fuels, mitigating carbon emissions, and preparing energy systems for the future. In Pakistan, where generation and transmission infrastructure are already under strain, curbing the growth of solar energy would be not only counterproductive but also politically and economically unwise. Yet the deeper concern lies in the widening gap between government promises and lived reality.
Citizens have repeatedly heard assurances of lower prices for electricity, gas, petrol, and water, yet over the past two years, the trajectory has been one of continuous increases. The repeated hikes have eroded public confidence in the state’s capacity—or willingness—to protect ordinary consumers, fostering cynicism toward regulatory decisions and official rhetoric. When administrative and regulatory measures appear misaligned with public interest, frustration is inevitable. Solar users, who have invested in self-generation as both a financial hedge and an environmentally responsible choice, find themselves caught in policy uncertainty. Households that consume minimally are paradoxically exposed to higher charges, sending the message that conservation and innovation may be penalized rather than rewarded.
Such contradictions undermine the credibility of government policy and risk stalling broader efforts to modernize the energy sector. What Pakistan requires is a long-term, evidence-based approach to energy governance that transcends short-term political expediency. Policymakers must design frameworks that reconcile multiple interests: residential consumers, industrial users, renewable energy adopters, and sectoral experts. Net metering and solar incentives should not be treated as temporary relief measures but as integral components of an energy strategy aligned with global trends and national imperatives. The government must embrace transparent, consultative processes, drawing on the insights of energy economists, engineers, consumer advocacy groups, and environmental specialists. Only through such inclusive policymaking can public trust be restored, and only then can renewable energy policies achieve both efficiency and social legitimacy.
(The writer is a former government officer and a senior analyst on national and international affairs, can be reached at inam@metro-morning.com)
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