Solar owners may earn more under new Power Division proposal

The Power Division has proposed a new incentive mechanism under which solar consumers with battery storage systems could receive additional payments for supplying stored electricity to the national grid during evening peak hours.

According to the proposal, a Time-of-Use (ToU) net metering and net billing formula would allow solar system owners with battery backups to earn an additional Rs18 to Rs22 per kilowatt-hour for electricity supplied between 5pm and 10pm, when electricity demand is at its highest.

The proposal comes as Pakistan's evening peak electricity demand has exceeded 26,000 megawatts, increasing pressure on the national grid and raising the cost of power distribution during peak hours.

The Power Division said the initiative aims to encourage consumers to store surplus solar energy generated during the day and feed it into the grid during periods of high demand, helping improve grid stability.

The proposal also comes amid rapid growth in Pakistan's battery storage market, with lithium-ion battery imports reaching 6.004 gigawatt-hours, valued at Rs126 billion ($454.7 million), between January 2024 and June 2026.

The proposal is yet to be finalised and forms part of broader efforts to strengthen battery-supported solar systems and improve electricity supply management.