Pakistan's net metering framework ran for nearly a decade before NEPRA formally replaced it on February 9, 2026. The change matters to every solar panel owner in the country — and to anyone considering installing panels now. Under the old system, surplus electricity exported to the grid was credited at full retail rate: roughly Rs22–27 per unit depending on your tariff. Under net billing, that export credit drops to the National Average Energy Purchase Price — currently around Rs11–13 per unit. The same unit that costs you Rs25 to buy from the grid earns you Rs11–13 when you send it back.
I have solar panels on my roof in Islamabad and was under a net metering agreement when the new regulations came through. My situation — and that of the 466,000-odd existing solar consumers in Pakistan — is different from someone installing today. This article covers both cases.
What Was Net Metering?
Net metering, introduced under NEPRA regulations in 2015, allowed residential and commercial solar owners to connect to the grid and trade electricity in both directions. When your panels produced more than you consumed, the surplus flowed to the grid and your meter ran backwards — crediting you at the same per-unit rate you would pay for grid electricity.
A household paying Rs25 per unit for grid electricity received Rs25 per unit in credit for every surplus unit exported. At the end of a billing cycle, you paid only the net difference. Hence the name.
This made solar investment straightforward to calculate. Your payback period was predictable because the credit rate matched the cost rate exactly.
What Is Net Billing and How Is It Different?
Net billing, introduced by the NEPRA Prosumer Regulations 2026 (SRO 251(I)/2026), separates import and export rates. You still generate solar electricity, consume what you need, and export the surplus — but the two sides of that transaction are now priced differently:
- Import: You buy grid electricity at the prevailing retail tariff — same rates as before, including slabs, FPA, and GST
- Export: Your surplus solar electricity is purchased by your DISCO at the National Average Energy Purchase Price (NAEPP) — currently around Rs11–13 per unit
The gap between those two numbers is the entire change. The unit you export earns roughly half what the same unit costs to import. Under net metering, that gap was zero.
At the end of each billing cycle, if your exports exceed your imports, the credit carries forward to the next bill. If accumulated credits are not absorbed by bills within a quarter, DISCOs are required to pay them out in cash.
The New Export Rate — What You Actually Get Per Unit
The export rate is set by NEPRA at the National Average Energy Purchase Price. This is not a fixed permanent figure — NEPRA determines it periodically based on the national average cost of procuring electricity. It currently sits in the Rs11–13 per unit range.
For context: retail tariffs for unprotected residential consumers run Rs22–27+ per unit depending on consumption slab, before FPA and GST are added. The export rate is approximately half of what you pay for imports.
This changes the economics of solar investment sharply. Under net metering, oversizing a system was sensible — surplus units were credited at full value. Under net billing, surplus units earn less than half what imported units cost, so the optimal strategy shifts from maximising generation toward maximising self-consumption.
Existing Solar Owners — Your Agreements Are Protected
If you had a valid net metering agreement in place before February 9, 2026, your situation is different from a new installation.
After the Prosumer Regulations 2026 were notified, the backlash was immediate. With 466,506 existing solar consumers facing an overnight cut in their export credit, the Prime Minister ordered an urgent review. NEPRA responded on February 16, 2026, issuing a draft amendment exempting existing consumers from the new rules.
The amendment — given retrospective effect from February 9 — confirms that existing net metering agreements remain in force under the original 1:1 credit terms until those agreements expire. If your agreement was executed before February 9, 2026, you continue receiving full retail-rate export credit for the remaining term of your contract.
There is one important caveat: the protection covers your existing system, not expansions. If you add more panels after February 9, the additional capacity falls under net billing rules — not your original agreement. The protection is for what you had, not for what you add later.
What the 5-Year Contract Means for New Connections
New solar prosumers connecting after February 9, 2026 sign a five-year net billing contract. At the end of five years, the contract is eligible for renewal — but under whatever rules NEPRA has in place at that time, not the original terms.
This introduces regulatory uncertainty that was not present under the old framework. Net metering ran stably for nearly a decade. New solar owners under net billing are committing to a five-year contract knowing the renewal terms are unknown. Factor this into any solar investment calculation.
How the Economics Change for New Solar Users
Under net metering, the standard advice was: size your system to match annual consumption. The 1:1 credit handled the daily mismatch between peak solar production (midday) and peak home consumption (evening).
Under net billing, that approach is less efficient. Exporting a unit earns Rs11–13. Importing a unit costs Rs22–27. Every unit you could have self-consumed but exported instead loses Rs10–15 in value.
Prioritise self-consumption. Size your system to match your daytime load — not your total daily consumption. Shift heavy appliances (washing machine, water pump, geyser) to solar production hours rather than evening hours.
Consider battery storage. A hybrid inverter with a battery bank stores midday surplus for evening use, so you consume it at home instead of exporting at Rs11 and buying back at Rs25. The economics of battery investment improve significantly under net billing. For more on hybrid solar setups, see How to Reduce Your Electricity Bill in Pakistan.
Do not oversize for export. Adding panels beyond your self-consumption capacity generates surplus that earns half the retail rate. The incremental return on extra panels drops sharply once you are regularly exporting more than you import.
It is also worth noting that the new fixed charges on electricity bills approved in February 2026 apply regardless of grid consumption — meaning even solar users with very low imports still face a monthly fixed charge based on their sanctioned load.
Frequently Asked Questions
What is the difference between net metering and net billing in Pakistan?
Under net metering (the old system, active until February 9, 2026), surplus solar electricity exported to the grid was credited at the full retail tariff rate — the same price you pay for imports. Under net billing (the new system), exports are credited at the National Average Energy Purchase Price, currently around Rs11–13 per unit — roughly half the retail import rate.
Am I affected if I already have a net metering connection?
If your net metering agreement was signed before February 9, 2026, you are protected under the original 1:1 credit terms until your agreement expires. NEPRA issued an amendment with retrospective effect from that date confirming this. However, any expansion of your system after February 9 falls under the new net billing rules, not your existing agreement.
What is the current solar export rate in Pakistan?
The National Average Energy Purchase Price — the rate at which DISCOs buy surplus solar electricity under net billing — is currently approximately Rs11–13 per unit. NEPRA determines this periodically. Check their website for the most current figure before making investment decisions.
Should I still install solar under the new rules?
Solar still reduces your grid consumption and your bijli bill — the economics have changed, not disappeared. The key shift is to size the system for self-consumption rather than export, and to consider battery storage to use surplus electricity at home rather than exporting it at the lower rate. A well-sized system focused on self-consumption can still deliver a reasonable payback period.
What happens if my solar exports exceed my electricity imports?
Surplus export credits carry forward to offset future bills. If accumulated credits are not absorbed by your bills within a quarter, your DISCO is required to pay them out. This protects prosumers who generate significantly more than they consume from seeing credits go to waste.
When does my existing net metering contract expire?
Check your original agreement with your DISCO — LESCO, IESCO, MEPCO, FESCO, or GEPCO — for the expiry date. Once it expires, your connection moves to net billing under whatever rules NEPRA has in place at renewal time.