Attack on Net Metering

By Faiz Bhutta

As Pakistan starts growing, terrorist activities start and same as when solar Industry starts growing, attacks on it starts. The recent attack on Net metering policy is similar to this. My point of view as Solar PV expert is as below,

1. Solar Industry started in 2005, but it took off in 2010, initially there was no net metering policy and all solar PV systems were off-grid or hybrid. The pace of solar Installations was slow because the issue was where the electricity from Solar should go if exceeds from its use?
2. In 2014, when solar Industry took rise, the Tax was imposed on import of solar PV modules and then took back upon strong voice from solar Industry associations.
3. Lot of efforts at every forum were made to make acceptable the idea of Net metering. NEPRA finally issued SRO 892/2015 under which the first net metering was done for PEC and Planning Commission systems, and it took four years to get net metering for PEC and PC license because SRO was not available. Because of this SRO, the solar PV installations rose very high and have now reached 230,000 Number and solar Industry grew very fast in this period. When some things start growing in Pakistan, attack is expected. World Bank study was also appraised by the Government that solar penetration up to 20% of total installed capacity is safe for existing Grid Network. Question arises why the planning was not done at this stage about the penetration of solar and why the safeguards were not planned. Why at once the Government awakes and starts attack on growing Industry same as CNG stations were damaged. Why were the users allowed to put solar size equal to 1.5 times of the sanctioned load and why not equal to sanctioned load. Who allowed load extension to users from sanctioned load upon payment of charges. The blame goes to policy makers and implementers for creating mess, not to the solar users that are being punished upon installation of solar. Who has put down the use of software for submitting online applications for net metering and adopted manual methods. Why not the safeguards were made to prevent reverse metering at sub-stations. All inefficacies on the part of the Government and DISCOs are being directed toward solar Users which is not fair.
4. The reason for new net metering policy approved by the ECC of the cabinet that solar installations are taking away the load and capacity payments are being directed to the non-net metered people without thinking that the solar installations have helped in saving on building new power stations and new transmission lines and helped in reduction of load shedding in the day and helped in earning of the DOCOs buying solar at Rs.27 and selling at Rs.65 per unit and finally helped in reduction of GHG emissions.
5. The question is what will happen to capacity payments when all customers are shifted to battery based solar systems which the Government is pushing all the population to move to battery-based systems and get DISCO connection disconnected due to expensive energy. This thinking and process has started in Industries and big houses who have already diesel gensets.
6. With implementation of the new Policy, DISCO will buy back at rate Rs.10/KWh from new solar user and will buy back at the rate Rs.27/unit from old users. Now electricity is accessible to lower middle class and poor which is left to enjoy solar and get cheaper electricity and why poor should subsidize to old rich users. Why this decimation between old and new.
7. In 2018, the current energy minister said that he wanted to have 5 GW of solar within three years. Still the solar installed base has reached 4 GW and why the cap on it.

What should be done?

1. Increase the load through EVs and implement reforms for quick industrial growth.
2. Make electricity cheaper so that people use grid energy more and avoid shifting on solar.
3. The tariff should be uniform for everyone whether old or new.
4. Time of use Tariff should be introduced.
5. Poor people should be given subsidized loans at the rate of 5% interest so that they quickly shift to solar and enjoy cheaper electricity.
6. Take all measures to prevent any reverse metering at sub-stations.
7. Plan to convert all substations to smart grid stations.
8. There should be Power map of each street of Pakistan so that estimate of injection through solar, wind and non-renewable power should be timely monitored and action taken to reverse.
9. DISCOs should be privatized to avoid further deterioration in the power distribution.

I would like to suggest that all stake relevant stake holders should sit and discuss the whole situation and then take measure to resolve the issue.

Author is Solar PV expert and can be reached at [email protected]