Pakistan Abolishes Net Metering for New Solar Consumers, Introduces Net Billing
ISLAMABAD; (Click Pakistan) Pakistan’s power regulator has abolished the net metering system for new solar consumers and replaced it with net billing, a move that will take effect immediately, according to regulations issued Monday.
The National Electric Power Regulatory Authority (NEPRA) notified the Distributed Generation and Net Metering Regulations 2026, suspending the earlier 2015 framework. Under the new rules, surplus electricity generated by solar consumers will be purchased by distribution companies at approximately Rs11.5 per unit, significantly lower than existing retail tariffs.
NEPRA has also reduced the contract period for net billing from seven years to five years, with the option of renewal for an additional five years upon expiry. Payments for excess electricity supplied to the national grid will be made on a monthly basis.
Unlike net metering, where electricity exported to the grid is adjusted unit-for-unit against consumption, net billing requires consumers to sell surplus power at a fixed rate while purchasing electricity from the grid at prevailing tariffs. The new regulations will also apply to biogas-based distributed generation systems.
Energy experts are divided over the shift. Supporters argue net metering was placing a growing financial burden on the grid and other consumers. Critics warn the lower buyback rate could discourage rooftop solar investment by extending payback periods.
NEPRA clarified that the new policy applies only to new solar consumers. Existing net metering customers will continue under their current contracts, typically selling surplus electricity at rates of Rs26 to Rs27 per unit, until their agreements expire.
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