NEPRA Retains Net Metering for Existing Solar Consumers – Full 2026 Policy Update
The National Electric Power Regulatory Authority (NEPRA) has officially announced that existing solar net metering consumers will continue under their current agreements, providing major relief after recent reforms sparked nationwide debate.
The decision comes after changes introduced on February 9, 2026, altered how surplus solar electricity is compensated. Following public reaction and stakeholder concerns, NEPRA issued a formal notification safeguarding the rights of current solar users while proposing amendments for future connections.
This development is widely searched online under keywords like:
- NEPRA net metering update 2026
- Solar policy Pakistan latest news
- Net metering rules February 2026
- Solar export rate Pakistan
- Net billing vs net metering Pakistan
In this detailed article, we explain everything in easy English, including:
- What NEPRA decided
- What changes under the new framework
- How existing solar users are protected
- What happens to future solar connections
- Financial impact on households and businesses
- FAQs
What Is Net Metering in Pakistan?
Net metering allows solar system owners (called “prosumers”) to:
- Generate electricity through solar panels
- Use electricity for their own consumption
- Send excess electricity back to the grid
- Offset exported units against imported units
Under the old system, exported units were adjusted one-to-one against consumed units. This helped solar users reduce or even eliminate their electricity bills.
Why Did NEPRA Change the Solar Policy?
On February 9, 2026, NEPRA introduced reforms that changed the compensation structure for surplus solar electricity.
The government argued that:
- Rapid growth in rooftop solar was creating financial pressure on distribution companies
- Cross-subsidies were increasing burden on non-solar consumers
- The power sector’s circular debt needed control
However, the decision faced criticism from:
- Solar industry stakeholders
- Consumer rights groups
- Renewable energy advocates
- Existing solar investors
Due to growing concerns, NEPRA clarified its position and protected existing consumers.
Existing Solar Consumers Protected – Major Relief
NEPRA clearly stated that existing solar net metering consumers will not be affected by the new rules.
Key Protection Points:
- Current agreements remain valid
- Existing rates and billing mechanism continue
- Licenses and approvals remain effective
- Contracts remain active until expiry
This means if you already have an approved net metering agreement, your financial model and return on investment will not change.
The relevant amendment is considered effective from February 9, 2026.
What Changes Under the New Net Billing Framework?
While existing users are protected, new solar connections will operate under a revised system.
1️⃣ End of One-to-One Offset Model
Under the new framework:
- Power utilities will buy surplus electricity at the national average energy purchase price
- Imported electricity will be billed at the standard consumer tariff
This means exported solar units will no longer be adjusted one-to-one against consumed units.
What This Means:
If your exported rate is lower than your consumption rate, your savings may reduce.
2️⃣ Introduction of Net Billing System
The new system resembles net billing, where:
- Exported electricity is valued separately
- Imported electricity is charged at full tariff
- Difference is calculated in billing
This significantly changes long-term solar return calculations.
3️⃣ Shorter Contract Duration
Previously:
- Net metering agreements were valid for 7 years
Now:
- Standard agreement term reduced to 5 years
- Renewable by mutual consent
This shorter contract period introduces more regulatory uncertainty for future investors.
Billing Adjustments Explained
Under new regulations:
- If exported units exceed imported units
- The excess will be either:
- Adjusted in the next bill
- Or paid every three months
This quarterly settlement system replaces the continuous offset structure.
Who Will Be Affected?
Protected:
- Existing residential solar users
- Existing commercial solar users
- Existing industrial prosumers
Affected:
- New solar applicants
- Renewals after contract expiry
- Future distributed generators
Impact on Residential Solar Users
For households considering installing solar:
- Return on investment may take longer
- Savings calculation will change
- Export compensation may be lower
People searching for:
- “Is solar still profitable in Pakistan 2026?”
- “Solar panel payback period Pakistan”
Should now re-evaluate based on the new export rate structure.
Impact on Businesses & Industries
Commercial and industrial users generating up to 1 megawatt also fall under this amendment.
Potential impacts:
- Lower export earnings
- Changed financial feasibility
- Revised break-even timeline
However, self-consumption still provides major savings.
Why NEPRA Invited Public Feedback
NEPRA has published draft amendments to:
National Electric Power Regulatory Authority (Prosumer) Regulations, 2026
Stakeholders have 30 days to submit feedback.
This open consultation process allows:
- Industry experts to propose changes
- Consumers to voice concerns
- Solar companies to suggest improvements
Public consultation increases transparency and policy balance.
Economic Impact of the New Solar Policy
Positive Aspects:
- Reduces pressure on power distribution companies
- Controls subsidy imbalance
- Stabilizes grid economics
- Encourages responsible solar growth
Negative Concerns:
- May slow rooftop solar adoption
- Investor confidence impact
- Renewable energy transition could slow
- Financial planning becomes uncertain
Solar Investment in Pakistan – What Should You Do Now?
If you already have solar:
✔ No immediate concern
✔ Agreement remains valid
✔ Continue as per old net metering model
If planning new solar installation:
✔ Recalculate return on investment
✔ Compare export rate vs consumption rate
✔ Focus on maximizing self-consumption
✔ Consult certified solar installer
Net Metering vs Net Billing – Simple Comparison
| Feature | Old Net Metering | New Net Billing |
|---|---|---|
| Export Offset | One-to-One | Separate pricing |
| Contract Period | 7 Years | 5 Years |
| Billing Method | Unit Adjustment | Monetary Settlement |
| Investment Return | Higher | Slightly Lower |
Will Solar Still Be Beneficial in 2026?
Yes, but strategy matters.
Solar remains beneficial if:
- You consume most of your generated electricity
- You reduce dependency on grid power
- You manage usage timing efficiently
However, exporting large surplus units may not be as profitable as before.
Public Reaction & Debate
The February 9 reforms sparked debate across:
- Social media
- Energy forums
- Business communities
Many argued:
- Policy uncertainty discourages renewable investment
- Sudden change affects investor trust
- Solar adoption was helping reduce load shedding
NEPRA’s clarification protecting existing consumers helped calm concerns.
Conclusion – Stability for Existing Users, New Rules for Future Investors
NEPRA’s decision to retain net metering for existing solar consumers brings clarity and relief after weeks of uncertainty. While the new framework introduces net billing and shorter contracts for future installations, current users remain protected.
Pakistan’s renewable energy journey continues, but future solar investors must carefully evaluate cost, export rates, and contract terms under the updated 2026 regulations.
This policy marks a major turning point in Pakistan’s solar market, balancing grid sustainability with consumer protection.
