Lusaka, Zambia 5th February 2025 – The Consumer Unity & Trust Society (CUTS) is concerned over the challenges faced by consumers under ZESCO’s net metering policy, which allows households and businesses to supply excess solar energy back to the grid in exchange for credits. While the initiative aims to promote renewable energy and ease pressure on the national grid, consumers continue to struggle with high costs, regulatory hurdles, and unfavorable tariffs.
One of the major barriers to net metering adoption is the high upfront cost of setting up a solar power system. Consumers are required to invest in smart meters, solar panels, inverters, and backup batteries, making it unaffordable for many households and small businesses.
Additionally, the lengthy regulatory approval process discourages participation. Consumers must obtain clearance from both ZESCO and the Energy Regulation Board (ERB), a process that we as CUTS describes as bureaucratic and time-consuming.
The current net metering framework does not offer sufficient incentives for consumers to adopt renewable energy. Fixed tariffs set by ERB mean that consumers receive significantly lower credits for the power they export to the grid compared to what they pay for electricity at retail prices.
Under existing regulations, if a consumer’s annual electricity exports exceed 75% of their total generation, the following year’s tariff is reduced to 50% of the Reference Tariff—a provision that we argue undermines the financial viability of net metering.
Further complicating the situation is ZESCO’s aging grid infrastructure, which may not be equipped to handle power injections from distributed solar systems. Consumers feeding energy back into the grid often experience technical issues and voltage fluctuations, diminishing the reliability of the system. Additionally, persistent load shedding and power outages further impact the expected benefits of net metering.
CUTS is calling for policy reforms to make net metering more attractive and accessible. We urge the government to introduce financial incentives, streamlined regulatory approvals, and fairer tariffs to encourage wider adoption.
With government support and consumer-friendly policies, net metering can significantly contribute to Zambia’s energy security and sustainability. As Zambia transitions to cleaner energy, addressing these challenges will be crucial in ensuring net metering becomes a viable solution for energy consumers and a driver for increased renewable energy use in the country.
This article is written by Victor Sikombe, CUTS Consumer Welfare Officer
Email: vis@cuts.org