Pakistan’s renewable energy sector is entering a major transition as the National Electric Power Regulatory Authority has decided to end the net metering system. The authority will replace it with a new policy called net billing under the Prosumer Regulations 2026. This net billing policy pakistan affects thousands of rooftop solar users across the country.
For nearly ten years, net metering allowed consumers to balance the electricity they produced with the units they consumed from the grid. Under the new policy, this system will no longer continue. Instead, solar users will sell surplus electricity to the grid at the national average energy price. At the same time, they will continue to buy electricity at the regular consumer tariff.
As a result, the gap between buying and selling rates will increase. Reports suggest consumers may pay over Rs 40 per unit including taxes, while the buyback rate may remain close to Rs 11 per unit. Therefore, solar users will earn much less for exported electricity than before.
How Net Billing Policy Pakistan Will Affect Solar Users
The new net billing policy pakistan rules will apply to renewable energy systems with a capacity of up to one megawatt. This includes rooftop solar panels, small wind turbines, and biogas systems. Unlike net metering, prosumers will not be able to offset imported and exported units on a one to one basis.
Moreover, NEPRA has introduced new technical and regulatory requirements. Prosumers must now follow updated metering standards and system approval procedures. In addition, they must meet grid safety and performance rules to stay connected to the network.
Supporters of the policy say net billing will help reduce financial pressure on the power sector. According to officials, the old system shifted costs to non solar consumers and added stress to distribution companies. Therefore, they believe the change will lead to more balanced electricity pricing.
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However, critics argue that the new policy may slow rooftop solar growth. Lower financial returns could discourage households and small businesses from installing solar systems. As a result, many potential investors are now reconsidering their plans.
Overall, the decision marks a turning point for renewable energy in Pakistan. As the new rules take effect, existing and future solar users will need to adjust their expectations. Meanwhile, the energy sector continues to evolve as authorities reshape how clean electricity is produced, sold, and valued nationwide.
