Solar Net Metering Scrapped? NEPRA Notifies New Regulations
Yes, it’s official. On February 9, 2026, NEPRA formally ended Pakistan’s decade-old Solar Net Metering regime and replaced it with a far stricter Net Billing system under the NEPRA (Prosumer) Regulations, 2026.
This is one of the biggest energy policy shifts Pakistan has seen in years—and it directly changes how solar users save (or don’t save) money.
Below is a clear, no-nonsense breakdown of what changed, who is affected, and what solar users should do next.
Net Metering vs Net Billing: The Core Change
The old system treated the grid like a free battery. The new one does not.
Old System: Net Metering (2015 Rules)
- Export 1 unit to the grid → take 1 unit back free
- You paid only for the net difference
- Ideal for rooftop solar without batteries
New System: Net Billing (2026 Rules)
You are now both a seller and a buyer.
- Selling to grid:
DISCO buys your surplus solar at ~Rs. 8–11 per unit - Buying from grid:
You buy electricity at Rs. 40–55 per unit + taxes
In simple terms:
You sell cheap. You buy expensive.
What Exactly Changed? (Side-by-Side Comparison)
| Feature | Old Net Metering (2015) | New Net Billing (2026) |
|---|---|---|
| Unit adjustment | 1:1 unit exchange | Cash-based credit |
| Buyback rate | ~Rs. 25–27/unit | Rs. 8.13–11.00/unit |
| Contract duration | 7 years | 5 years |
| System size limit | 1.5× sanctioned load | Max 100% sanctioned load |
| Transformer rule | Flexible | No new connections if 80% full |
| Grid usage | Grid as “battery” | Grid as buyer/seller |
Who Is Affected?
1) New Solar Applicants
If you apply after Feb 9, 2026, you will only get Net Billing.
No exceptions.
2) Existing Net Metering Users
- Current 7-year contracts will mostly be honored
- After expiry, you will be shifted to:
- 5-year Net Billing contract
- Lower export rates
3) Government Buildings
Several Punjab government buildings have already had net metering suspended as part of a “financial stress test” on the grid.
Why NEPRA and the Government Did This
According to NEPRA and the Power Division:
- The solar boom caused Rs. 500+ billion annual losses
- Solar users avoided capacity payments (fixed power plant costs)
- Those costs shifted to non-solar, poorer consumers
- The grid was being used as a free storage system
In short:
The grid couldn’t afford net metering anymore.
What Should Solar Users Do Now?
The Smart Move: Go Hybrid (Solar + Batteries)
Under Net Billing:
- Selling at Rs. 11
- Buying at Rs. 50
…makes exporting electricity financially illogical.
What Experts Recommend
- Install battery storage
- Use daytime solar at night
- Minimize exports to the grid
- Treat DISCO power as backup, not balance
Hybrid systems now offer much better ROI than grid-export systems.
Key Terms Explained (Simple Language)
- Prosumer: A consumer who also produces electricity
- DISCO: Distribution company (LESCO, MEPCO, IESCO, etc.)
- Sanctioned Load: Your approved electricity capacity
- Capacity Payments: Fixed costs paid to power plants even if electricity isn’t used
Big Picture Impact
This policy will likely:
- Slow down grid-connected rooftop solar
- Boost battery imports
- Push solar toward self-consumption models
- Change payback periods from 3–4 years to 6–8 years (without batteries)
Solar is still valuable—but the strategy has changed.
Bottom Line
Solar net metering in Pakistan is effectively dead for new users.
The 2026 rules mark a shift from:
“Use the grid as your battery”
to
“Store your own power or lose money”
If you’re planning solar in 2026, battery storage is no longer optional—it’s essential.
