ISLAMABAD — Pakistan’s growing shift toward rooftop solar has begun easing pressure on consumers, as power companies acknowledged on Thursday that record net-metering supplies significantly reduced fuel cost adjustments (FCA) for October 2025.
According to fresh data, the country registered a negative FCA of Rs0.65 per kilowatt-hour, driven by cheaper-than-expected electricity generation during the month. Actual generation cost averaged Rs8.7177/kWh, lower than the reference price of Rs9.3685/kWh, allowing a deduction of Rs0.6508/kWh for consumers.
With 9.63 billion units sold in October, the overall FCA relief is estimated at Rs6.27 billion.
Solar Net Metering Emerges as Key Driver of Relief
During a public hearing, officials from the Central Power Purchasing Agency–Guaranteed (CPPA-G) confirmed that daytime electricity demand is dropping sharply as more households and businesses rely on rooftop solar.
A Nepra presentation revealed that net-metered solar supplies hit an all-time high of 204.5 GWh in October, directly reducing the FCA. These units carry zero fuel cost, lowering the overall fuel basket for distribution companies.
From July to October, DISCOs collectively procured 573.7 GWh of net-metered energy — with October showing the strongest rooftop production of the year.
Key contributors in October included:
- Lesco: 58.3 GWh (134.2 GWh in four months)
- Iesco: 45.9 GWh (139.7 GWh cumulative)
- Mepco: 51 GWh (157.7 GWh cumulative — highest among DISCOs)
Nepra noted that net-metered units displace expensive thermal generation, especially RLNG and furnace oil, which keeps consumer tariffs lower.
Experts Caution About Future Tariff Pressures
Tanveer Bari, representing the Karachi business community, said that despite October’s relief, reliance on coal and RLNG is expected to rise in coming months, likely increasing generation costs.
He also highlighted the surge in solar adoption across Pakistan, saying, “Consumers have turned to solar because electricity has become unaffordable.”
CPPA-G officials explained that RLNG allocations — 600mmcfd — were fully utilised, and that local coal generation costs decrease with higher utilisation due to their fixed and variable cost components.
Breakdown of October’s Power Generation Mix
Pakistan’s electricity mix for October 2025 showed contrasting cost trends:
- Local Coal: 1,261 GWh (12.76%) at Rs13.1024/unit
- Imported Coal: 466 GWh at Rs14.3874/unit
- Furnace Oil: 48 GWh at Rs32.6908/unit
- Gas: 905 GWh (9.16%) at Rs13.3635/unit
- RLNG: 1,949 GWh (19.72%) at Rs21.0611/unit
- Nuclear: 2,188 GWh (22.13%) at Rs2.1728/unit — cheapest source of generation
- Imported Power from Iran: 43 GWh at Rs22.7572/unit
- Renewables:
- Wind: 185 GWh
- Solar: 96 GWh
- Bagasse: 40 GWh at Rs10.7409/kWh
Solar’s Expanding Role
October’s record net-metering procurement underscores the rapid transition underway as households and businesses turn to self-generation. The trend is significantly cushioning consumers from volatile global energy prices and costly thermal fuel imports.
For now, the surge in rooftop solar has provided a rare moment of relief for millions — helping to offset Pakistan’s high-cost energy mix and offering a promising glimpse into a more sustainable future.
Story by Zafar Bhutta
