NEPRA Replaces Solar Net Metering with New Net Billing System Officially

On February 9, the National Electric Power Regulatory Authority (NEPRA) formally informed about the Net Metering Regulations 2026, which puts an end to the ten-year-old regime of unit-by-unit exchange. This change of policy brings on board a net billing system which reduces the buy back rates on excess energy and keeps high the retail tariff on grid consumption.

Solar Net Metering: The New Financial Reality

Pakistan has fundamentally altered rooftop solar economics to curb rising grid losses. Under the 2026 framework, the practice of offsetting daytime exports against nighttime imports at the same retail price is dead.

Strict Controls on Solar Capacity

The new NEPRA regulations impose technical caps to ensure grid stability. Discos will reject new applications if solar generation on a local transformer exceeds 80% capacity. Additionally, systems cannot exceed the consumer’s sanctioned load. While existing consumers keep their old rates until contract expiry, they must shift to net billing for all future renewals.

With 6,000 MW of solar installed, utility companies reported Rs. 101 billion in losses last year. This policy forces a move toward energy independence. Experts now recommend lithium-ion batteries and hybrid systems. Storing energy is now more profitable than selling it back to the grid at the new low rates.