Pakistan: Net Metering to Net Billing (NEPRA 2026)

SRO 251(I)/2026 ended 1:1 net metering for new solar connections in Pakistan. Here is what net billing pays, who is grandfathered, and how to design a system that still makes money.

In February 2026, NEPRA notified the Prosumer Regulations 2026 through SRO 251(I)/2026, ending one-to-one net metering for new rooftop solar connections in Pakistan and replacing it with net billing. If you already hold a net-metering agreement, your terms are protected until the agreement ends; if you are installing now, the economics of your system have fundamentally changed. This guide explains what changed, what it costs you, and how to design around it.

What actually changed

• Net billing replaces net metering for new prosumers. Exported units are no longer swapped against imported units. Instead the DISCO buys your exports at the national average energy purchase price — Rs 8.13 per unit for April–June 2026, revised quarterly — while you pay the full retail tariff, commonly Rs 40 to 50 and higher in Karachi, for everything you import.
• Cash settlement, not unit banking. Under the old regime surplus units rolled forward month to month. Under net billing there is no unit bank: exports are monetised at the buyback rate in the same billing cycle.
• One-time fees. Under SRO 709(I)/2026 there is no NEPRA fee for systems up to 25 kW; above 25 kW a one-time fee of Rs 1,000 per kW applies, plus the usual metering and inspection charges. Since SRO 1330(I)/2026, systems up to 25 kW need only DISCO approval, with no NEPRA concurrence.
• Sizing is capped at your sanctioned load. The earlier allowance of up to 1.5 times sanctioned load is gone for new connections.

Important caveat: the regulations took effect in February 2026 but immediately drew a review petition from the Power Division and strong public pushback, and the buyback notification has been in flux. Figures here reflect NEPRA notifications as of November 2026 — verify the current text and rates on the official NEPRA portal before signing anything.

Net metering vs net billing at a glance

Are existing net-metering users protected?

Partly. Agreements valid on 9 February 2026 — typically signed for seven years — keep being paid the national average power purchase price for exports (Rs 25.32 per unit for April–June 2026) until the agreement expires. On renewal they move to net billing at the energy purchase price. Keep a copy of your agreement and confirm its expiry date and billing basis with your DISCO.

Worked example: a 10 kW system, old rules vs new

Take a Lahore household with a 10 kW system generating about 1,200 units a month, using 480 of those units directly during the day, exporting the other 720, and importing 500 units in the evenings and on cloudy days. Assume a retail tariff of Rs 50 per unit including surcharges; figures rounded and illustrative.

• Old net metering: 720 exported units cancel the 500 imported units one-for-one, leaving 220 surplus units credited at roughly Rs 25 — about Rs 5,500 of credit. The energy bill is effectively zero, with fixed charges and taxes on top.
• New net billing: imports cost 500 × Rs 50 = Rs 25,000. Exports earn 720 × Rs 8 = Rs 5,760. Net energy bill: roughly Rs 19,000 a month, before fixed charges.

Same hardware, same sunshine — a swing of over Rs 20,000 a month, entirely from the rules. The 480 self-consumed units are the only part of the system still earning full retail value, about Rs 24,000 of avoided purchases. That is the core lesson: under net billing, a unit you consume yourself is worth about six times a unit you export.

How to protect your economics

• Size to your daytime load, not your roof. Oversizing now produces cheap exports, not savings. Aim for a system whose midday output your household can actually absorb.
• Shift loads into the solar window. Timers on washing machines, water pumps, irons and water heaters move consumption to hours when the panels are producing.
• Consider batteries. Storing a midday unit to use at night converts it from an Rs 8 export into an Rs 50 avoided import. Whether a battery pays for itself depends on its cost per cycle. Check this in the battery payback calculator. Size the storage to your evening load with the battery bank calculator.
• Prefer hybrid inverters for new installs. They allow batteries to be added later without replacing the inverter, and keep essential circuits running through outages.
• Upgrade to efficient appliances. Inverter ACs and refrigerators shrink the evening import that now costs full retail.
• Value the backup. The grid is still unreliable in much of Pakistan, and solar with storage replaces generator running costs. Compare the two in the diesel vs solar calculator.

Even at Rs 8 per exported unit, rooftop solar in Pakistan is rarely a bad purchase. Each unit that you use yourself avoids some of the highest retail tariffs in the region. What has ended is the use of the grid as a free battery. Enter your load profile in the Pakistan solar calculator. Design the system around self-consumption.

Common mistakes

• Sizing a new system to the old 1.5 × sanctioned-load rule, or to annual generation instead of daytime consumption.
• Using payback calculations that assume 1:1 offsets — most online calculators built before 2026 silently do.
• Ignoring the per-kW fee (above 25 kW), metering charges and inspection costs in the project budget.
• Buying more battery than your evening load needs, which stretches payback instead of shortening it.
• Assuming a grandfathered agreement automatically transfers with a property sale — verify with your DISCO.
• Treating today's buyback as permanent: the energy purchase price is revised every quarter.

Frequently asked questions

I already have net metering — does the new rule affect me?

Agreements valid on 9 Feb 2026 keep the national average power purchase price for exports (Rs 25.32 per unit in Apr–Jun 2026) until they expire. Renewals move to net billing at the energy purchase price. Confirm your expiry date with your DISCO.

What is the buyback rate under net billing?

Exports are paid the national average energy purchase price: Rs 8.13 per unit for April–June 2026, against retail tariffs of Rs 40 to 50 and higher. NEPRA revises it every quarter, so check the latest notification.

Is rooftop solar still worth installing in Pakistan?

Usually yes, if sized to daytime consumption. Self-consumed units still avoid full retail tariffs; only exports are devalued. Payback stretches versus the old regime, but load-shifting, batteries and backup value against an unreliable grid keep well-designed systems economic.

Do batteries now make financial sense?

Often, but not automatically. A stored unit converts an Rs 8 export into an avoided Rs 50 import, yet battery cost per cycle can eat that margin. Size storage to your actual evening load and test the numbers before buying.