ISLAMABAD: Pakistan’s National Electric Power Regulatory Authority (NEPRA) has officially abolished the country’s long-running net metering system for rooftop solar and other distributed generation users. Instead, the regulator has introduced a net billing (gross metering) mechanism under the NEPRA (Prosumer) Regulations, 2026.
NEPRA issued the notification S.R.O. 251(I)/2026 on February 9, 2026, and enforced it immediately, repealing the 2015 Net Metering Regulations.
Under the previous framework, solar prosumers received one-to-one unit credits, allowing exported electricity to offset imported electricity at the same retail tariff. In many cases, households benefited from rates above Rs 40 to Rs 50 per unit, especially in higher slabs.
How the new net billing system changes solar economics
The new system separates imports and exports, which changes the financial calculations for households and businesses. Consumers will continue to pay the full applicable tariff for electricity drawn from the grid. Meanwhile, distribution companies will purchase surplus exported electricity at the National Average Energy Purchase Price, currently around Rs 11 per unit.
Additionally, NEPRA has reduced the contract duration from seven years to five years and capped system capacity at 100% of sanctioned load, compared to 150% under net metering. The framework also shifts settlement from quarterly adjustments to a structured billing approach, while the regulations apply to solar, wind, and biogas systems up to 1 MW.
Officials cite losses, critics warn of slowdown
Power sector officials argue the shift will reduce financial losses and correct tariff distortions caused by falling grid sales. They also cite concerns over grid stability and the burden placed on non-solar consumers through higher tariffs.
However, critics warn the policy will reduce incentives for renewable adoption and weaken consumer confidence, particularly for those who invested expecting long-term savings. As a result, new rooftop solar installations may become less attractive despite falling panel prices and rising electricity costs.
