Experts believe net metering encourages power users to switch from traditional energy sources to solarenergy. The extraordinary rise in power tariffs has forced people to use solar energy to meet their energy needs. To save money, households with solar panels can sell excess electricity to the grid through net metering. The contribution of renewable energy to electricity generation is very low at the moment. According to Pakistan Economic Survey 2021-22, however, renewable energy’s contribution to electricity generation increased from 2.4% a 3.02% in the first ten months of the previous fiscal year. WealthPK was told by Muhammad Badar Alam (chief executive) of the Policy Research Institute for Equitable Development that Pakistan has a lot of potential for renewable energy. In recent years, a lot of countries have adopted net metering. He said that Pakistani power consumers and distributors had faced many challenges when adopting this technology. Badar Alam stated that Pakistani power consumers face many obstacles due to the bureaucratic red tape. The net metering process will likely require special equipment. This will not only be costly for consumers but also require complicated processes and procedures. These procedures can take up to months for the average consumer. This type of behavior is definitely disconcerting,” he said. Naila Saleh is the Agora Energiewende project manager and technical advisor at PRIED. She stated that overall energy prices have increased substantially in the past two years. The payments increased due to the addition of large amounts of electricity capacity in Pakistan.
According to her, the conflict between Russia’s and Ukraine is the second reason global energy prices have risen. The supply of oil and natural gas to different countries has been affected by the long-running conflict between Russia, Ukraine. Naila Saleh stated that Pakistan can solve the problem of capacity payments by centralizing the actors through the net-metering system. She also stated that transmission and distribution losses must be addressed. This is the main factor that causes the rise in power costs and the accumulation of circular debt. She added that these losses can be decreased by using the net metering method.
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She stated that the net metering system could also be used to reduce the impacts of climate change. The overall argument for net metering within the power sector is strong, logical, and compelling. She stated that net metering technology will lower energy costs and have a positive effect on the country’s economy. WealthPK was informed by her that net metering should be simplified and made more efficient in order to encourage solar energy generation by power consumers.