Pakistan’s federal government has approved sweeping changes to its solar energy framework. The decision introduces a new billing-based structure for solar consumers nationwide. As a result, the long-standing net metering system will no longer apply.
The revised framework operates under the NEPRA Solar Consumers Regulations 2025. Authorities finalised the policy after months of consultation. The discussions involved the Ministry of Energy, NEPRA, and key stakeholders.
Net Billing Replaces Net Metering
Under the new regulations, net billing will replace net metering entirely.
Previously, consumers received financial credits for surplus electricity. Now, consumers will exchange electricity units instead of receiving surcharges.
Moreover, the revised policy reduces the duration of solar contracts. Earlier contracts lasted seven years. However, the new framework limits contracts to five years.
This shift signals a significant change in how solar energy integrates into the national grid.
Revised Solar Tariff Structure
The government has set the new net billing rate at Rs 11 per unit. Earlier, solar consumers received Rs 25.98 per unit under net metering. Therefore, the revised tariff marks a notable reduction.
Officials stated that NEPRA will continue determining future solar tariffs. These rates may change depending on market conditions. However, authorities stressed that the policy will not heavily burden consumers.
Mandatory Licensing for Small Solar Users
Another major change involves licensing requirements. All solar consumers with loads below 25 kilowatts must now obtain a license. Previously, these consumers remained exempt from licensing rules.
The updated regulation applies to residential, commercial, and industrial users. Consequently, regulatory oversight will increase across small-scale installations.
According to officials, licensing will improve system monitoring and accountability.
Government’s Rationale Behind the Policy
The Ministry of Energy described the changes as necessary. Officials aim to improve solar system management nationwide. Additionally, the policy seeks to enhance transparency within the energy sector.
NEPRA officials confirmed the immediate implementation of net billing. This confirmation formally ends the net metering framework.
Authorities believe the revised structure will streamline solar integration. Furthermore, it will provide a clearer and more regulated billing process.
What This Means for Solar Consumers
The new policy introduces a simplified billing mechanism. At the same time, it brings tighter regulatory control. Consumers will now operate under defined exchange-based energy rules.
Sources indicated that the framework ensures long-term administrative stability. Meanwhile, officials insist the financial impact will remain limited.
Overall, the policy reflects a strategic shift in Pakistan’s solar energy governance.
