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NEPRA’s Net Metering Overhaul: What Changes for Pakistan’s Solar Users?

NEPRA has introduced the (Prosumer) Regulations 2026, effectively ending the one-to-one net metering system established in 2015. Under the new “net billing” framework, utilities like Discos will buy excess solar power from households and businesses at the national average energy purchase price potentially as low as Rs11 per unit while charging full consumer tariffs up to Rs50 per unit for supplied electricity. This shift could burden solar adopters with higher net payments, as the buyback rate drops from the current Rs25.9. Existing contracts remain intact until expiry, but renewals must comply with the new rules, including a reduced five-year term from seven.  Key Restrictions and Application Process System sizes are capped at 1MW and tied to sanctioned load, with no new setups if transformer generation hits 80% capacity. Larger systems (250kW+) require load flow studies, and all interconnection costs fall on prosumers, plus a Rs1,000/kW fee. Applications must be processed quic...

NEPRA’s Net Metering Overhaul: What Changes for Pakistan’s Solar Users?



NEPRA has introduced the (Prosumer) Regulations 2026, effectively ending the one-to-one net metering system established in 2015. Under the new “net billing” framework, utilities like Discos will buy excess solar power from households and businesses at the national average energy purchase price potentially as low as Rs11 per unit while charging full consumer tariffs up to Rs50 per unit for supplied electricity. This shift could burden solar adopters with higher net payments, as the buyback rate drops from the current Rs25.9. Existing contracts remain intact until expiry, but renewals must comply with the new rules, including a reduced five-year term from seven. 

Key Restrictions and Application Process

System sizes are capped at 1MW and tied to sanctioned load, with no new setups if transformer generation hits 80% capacity. Larger systems (250kW+) require load flow studies, and all interconnection costs fall on prosumers, plus a Rs1,000/kW fee. Applications must be processed quickly: acknowledgment in 5 days, review in 15, installation in another 15. Prosumers can’t sell to third parties via grids, and NEPRA can revise rates anytime. This aims to manage grid stability amid surging distributed generation, but critics argue it discourages renewables.


Potential Backlash and Economic Impacts

The policy may spark political heat, shifting IPP capacity payment burdens to solar users and altering rooftop economics. While protecting utilities, it could slow Pakistan’s renewable shift. Existing users are grandfathered, but Discos can terminate or migrate post-contract.


Online Reactions to the Policy Shift

Social media reflects frustration: Kashif Farooq’s post bids “goodbye netmetering” with a video explainer. Zubair Ahmed Khan calls it “stupid planners making citizens suffer”, highlighting sales restrictions. Sheherbano zamani questions benefits in her shared article post.


 


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