Pakistan considers reducing solar PV incentives amid rapid adoption

Pakistan is re-evaluating its incentives for rooftop solar photovoltaic (PV) systems due to concerns about grid reliability and increased capacity payments. The proposed changes include lowering buyback rates, limiting system sizes, and shifting from net metering to net billing. Despite these adjustments, the payback period for 5-25 kW solar PV systems remains under five years. With net-metered solar capacity reaching 2,200 MW in June 2024, the government aims to balance solar expansion with infrastructure stability.