Islamabad: Pakistan scraps net metering, introduces net billing for solar users in major policy shift

ISLAMABAD, February 10, 2026 — Pakistan’s power regulator, the National Electric Power Regulatory Authority (NEPRA), has officially abolished the decade-old net metering regime and replaced it with a net billing system under the newly notified NEPRA (Prosumer) Regulations, 2026.
The regulations, issued via S.R.O. 251(I)/2026 on February 9, 2026, mark a significant overhaul aimed at containing the rapid growth of distributed solar generation and reducing financial strain on the national grid and distribution companies.
Key changes include:
For new prosumers (those installing solar systems from now on), excess electricity exported to the grid will be purchased at the National Average Energy Purchase Price (NAEPP) — currently around Rs10–11 per unit — a sharp reduction from the previous rate of approximately Rs25.9 per unit.
Electricity drawn from the grid will be charged at the full applicable consumer tariff (ranging from Rs37–55 per unit or higher, depending on slab), ending the one-to-one unit offset system.
Contract duration for new connections has been reduced from 7 years to 5 years.
Existing registered prosumers will continue to receive the old buyback rate until the expiry of their current seven-year agreements, but billing will transition to the net billing mechanism immediately.
Analysts warn that the lower buyback rate will significantly extend the payback period for new solar installations, potentially driving more consumers toward fully off-grid systems with battery storage. Pakistan currently has around 7,000 MW of net-metered solar capacity and over 466,000 registered prosumers, with the majority concentrated in major urban centers.
The move has drawn widespread criticism from solar industry stakeholders, politicians, and energy experts, who argue it will discourage rooftop solar adoption at a time when renewable energy is urgently needed. The government maintains that the change is essential to protect the financial health of the power sector and address tariff distortions caused by rapid solar penetration.