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 a rate tied to the national average power purchase price — reported near Rs 11 per unit — 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. The regulations introduce a non-refundable concurrence fee reported at Rs 1,000 per kW, plus the usual metering and inspection charges; very small systems see simplified licensing.
• 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 reporting as of mid-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?

Yes, for now. Existing agreements — typically signed for seven years, some for three or five — are grandfathered: reporting on the regulations indicates existing prosumers continue on their contracted terms, settled near the older Rs 27 rate, until the agreement term ends. On expiry, renewal falls under the new net-billing structure. Early coverage of the regulations was contradictory on the details, and the pending review could still alter them, so if you hold an agreement, keep a copy of it and verify your status with your DISCO rather than relying on secondhand summaries.

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 27 — about Rs 5,900 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 11 = Rs 7,920. Net energy bill: roughly Rs 17,000 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 four to five 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 11 export into an Rs 50 avoided import. Whether the battery pays for itself depends on its cost per cycle — test it honestly in the battery payback calculator and size 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 remains unreliable across much of Pakistan, and solar with storage displaces generator running costs — compare against a generator in the diesel vs solar calculator.

Even at Rs 11 exports, rooftop solar in Pakistan is rarely a bad purchase — self-consumed generation still avoids some of the highest retail tariffs in the region. What has ended is the era of treating the grid as a free battery. Start from your load profile in the Pakistan solar calculator and let self-consumption drive the design.

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 concurrence fee, 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 Rs 11 as permanent: the buyback rate is tied to average power purchase costs and will be revised.

Frequently asked questions

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

Existing agreements are grandfathered on their contracted terms — typically seven years, some three or five — with settlement reported near the older Rs 27 rate until the term ends. Renewals then fall under net billing. A review petition is pending, so confirm your status with your DISCO.

What is the buyback rate under net billing?

Reporting puts it near Rs 11 per unit, tied to the national average power purchase price, against retail tariffs of Rs 40 to 50 and higher. The rate is revisable and notifications have shifted, so verify the current figure on the official NEPRA portal.

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 11 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.