Pakistan cuts compensation for rooftop solar users selling power to the grid

Pakistan's power regulator, the National Electric Power Regulatory Authority (NEPRA), published new rules late on Monday that reduce the compensation paid to rooftop solar users for electricity sold back to the grid. The decision, which has national scope across Pakistan PK, replaces the previous system of retail-tariff parity with a new rate based on the national average energy purchase price.

This shift in the retail electricity tariff framework significantly alters the financial incentives for rooftop solar users who had previously benefited from higher rates. By moving away from retail-tariff parity, the regulator is changing the incentive framework that once encouraged widespread rooftop adoption within the renewable electricity sector.