Pakistan has officially moved away from its long-standing solar net metering system, replacing it with a new net billing framework under the Nepra (Prosumer) Regulations 2026.
The decision fundamentally changes how rooftop solar users are compensated for excess electricity sent to the national grid.
What Has Changed?
Under the previous net metering model, solar consumers could offset their electricity bills unit-for-unit. That one-to-one adjustment system has now ended.
Under the new net billing system:
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Utilities will purchase surplus electricity at the national average energy purchase price (around Rs11 per unit)
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Consumers will continue to buy electricity from the grid at regular tariff rates (which can exceed Rs50 per unit)
This shift significantly reduces the financial return for households exporting large amounts of solar energy.
Who Will Be Affected?
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Existing solar users will continue under their current contracts until expiry.
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New connections and renewals will fall under the new 5-year net billing agreement.
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Maximum system size remains capped at 1 megawatt.
Additionally, consumers must now bear all interconnection costs and pay a non-refundable concurrence fee.
Why the Government Made This Move
Regulators say rapid growth in rooftop solar — now estimated at 6,000 MW nationwide — has reduced grid sales and created financial pressure on power distribution companies.
Officials argue that the previous model shifted fixed system costs onto non-solar users, increasing tariff burdens across the country.
The reform aims to:
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Reduce revenue losses in the power sector
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Improve grid stability
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Ensure fairer cost distribution
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Prevent overloading of transformers
What It Means for Solar Investors
Experts say rooftop solar remains viable, especially for:
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Businesses
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Factories
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Daytime electricity users
However, systems designed primarily to export surplus power to the grid will now see longer payback periods.
Energy analysts describe the policy shift as a move toward “generate for self-use, not for selling.”
While the change may slow rooftop solar expansion, authorities maintain it is necessary to protect the long-term stability of Pakistan’s power sector.
