In an abrupt and far-reaching policy shift, the National Electric Power Regulatory Authority (NEPRA) has effectively dismantled Pakistan’s net-metering regime, replacing it with a net-billing system that sharply alters the economics of rooftop solar for both existing and future consumers.
Under the NEPRA (Prosumer) Regulations, 2026, notified on Monday, all solar consumers, dubbed “prosumers,” will be required to sell surplus electricity to distribution companies (DISCOs) at the National Average Energy Purchase Price (NAEPP) of around Rs. 10–11/unit. They will, however, continue to buy electricity from the grid at prevailing consumer tariffs ranging between Rs. 37-55/unit, excluding taxes and surcharges. This ends the longstanding one-to-one unit offset model that had allowed solar users to significantly reduce or neutralize their hefty electricity bills, propelled by the government’s inefficient power contracts.
The move represents a sharp departure from repeated public assurances by government officials that existing solar consumers would be protected from unilateral changes. Contrary to those assurances, NEPRA’s notification immediately shifts all registered prosumers from net metering to net billing. While existing seven-year contracts will remain valid until expiry, export units will now be credited for one month instead of three, and billing will be carried out on a value basis rather than unit-for-unit exchange.
For future consumers, the impact is starker. New solar contracts will be limited to five years instead of seven, with surplus electricity purchased at nearly 60% lower rates than before; down from Rs. 26/unit to around Rs. 10–11/unit. Imported electricity from DISCOs will be billed separately at full tariffs, significantly lengthening payback periods and dampening incentives for households considering rooftop solar.
NEPRA introduced the changes through regulations circulated as draft and subjected to a public hearing on Friday evening. However, dozens of consumers, think tanks and business representatives complained they were restricted from proposing alternatives. By Monday afternoon, the regulator notified the regulations without altering a single clause, triggering criticism that the outcome had been predetermined. Lending credence to this belief, Power Minister Awais Leghari told Geo News over the weekend that prosumers were becoming “protected” consumers—a category of users who utilize less than 200 units from the grid—which is a hard pill to swallow.
The regulator and the Power Division have justified the move by citing grid instability, revenue erosion at DISCOs and rising capacity payments. They have not, per routine, attempted to fix these deficiencies, preferring to pass on the adverse impacts of their own inefficiency onto consumers. Officials claim on-grid solar capacity has reached about 7,000 megawatts, while off-grid and hybrid systems exceed 13,000MW. However, the new rules target only metered solar consumers, remaining largely silent on non-metered and over-capacity installations that officials themselves have blamed for stressing the grid.
Under the new framework, DISCOs will bill electricity consumed by prosumers at applicable tariffs, while crediting exported electricity at NAEPP. Any surplus amount would either be adjusted in the next billing cycle or paid quarterly, despite DISCOs historically struggling to make such payments on time. NEPRA has also capped solar capacity at the sanctioned load of the consumer, reduced allowable system sizes by up to 50% in some cases, and barred new connections once generation at a transformer reaches 80% of its rated capacity.
Critics argue the sudden shift undermines consumer confidence in renewable energy policy, particularly for those who invested in solar under the 2015 net-metering regulations. Analysts have warned the move risks slowing rooftop solar adoption, harming Pakistan’s stated goals of reducing fuel imports and achieving climate commitments.
Government officials counter that net metering had become regressive, disproportionately benefiting higher-income households while shifting fixed system costs onto non-solar consumers. Officials estimates claim that continued net metering could have led to cumulative losses of Rs. 545 billion by FY2034, pushing tariffs higher for the remaining grid-dependent users.
Net metering played a central role in Pakistan’s rooftop solar boom over the past decade, offering consumers relief from soaring tariffs and unreliable supply. Its abrupt replacement with net billing marks a decisive policy pivot that may protects the financial viability of the grid, but has ensured that the cost-benefit equation for current and prospective solar users nationwide is irreparably damaged.