Pakistan’s power regulator, the National Electric Power Regulatory Authority (NEPRA), has officially replaced the long-standing net metering system with a new net billing framework under the Prosumer Regulations 2026. This major policy shift ends the one-for-one credit system that allowed rooftop solar owners to offset their grid electricity use with surplus solar generation on a unit-by-unit basis.
Under the new rules, solar producers will be billed for every unit they import from the grid at the full retail tariff, which in many areas can be as high as Rs. 50 per unit. Any surplus electricity fed back into the grid will be purchased at the National Average Energy Price—a significantly lower rate that may be near Rs. 11 per unit for new users.
Instead of immediate unit-to-unit compensation, solar owners will receive payment for exported power separately, with billing settled at the end of each 30-day cycle based on the actual amount of electricity consumed and supplied. The revised mechanism applies to distributed generation up to 1 MW, including solar, wind, and biogas systems.
READ MORE: Pakistan Likely to Face India at T20 World Cup 2026
Existing net metering users will continue under their current contractual terms until expiry, after which they may be transitioned to the net billing model. NEPRA has also limited contract durations to five years, renewable once for an additional five years. With the enforcement of the 2026 regulations, the earlier Net Metering Regulations from 2015 have been suspended.
NEPRA says the updated framework aims to address financial losses and imbalances caused by rapid solar adoption that eroded grid sales and utility revenues, while placing greater costs on non-solar consumers. The regulator also intends for the changes to improve grid stability and reduce tariff distortions.
