ExplainedPublished April 20, 2026Updated August 10, 20266 min read

Net Metering vs Net Billing — Pakistan's 2026 Solar Rules Explained

Net Metering vs Net Billing — Pakistan's 2026 Solar Rules Explained

Pakistan’s NEPRA Prosumer Regulations, 2026 (S.R.O. 251(I)/2026) came into force on 9 February 2026 and repealed the 2015 distributed-generation and net-metering regulations. They set the rules for new grid-connected solar, wind and biogas prosumers.

I have a hybrid solar system in Islamabad and an agreement made before the 2026 rules. The facts below distinguish the current regulations from personal investment advice; an individual’s signed agreement and DISCO documents remain decisive.

What the Current Rules Call Net Billing

The 2026 regulations require the meter setup for a new prosumer to measure electricity flowing in both directions. One bidirectional meter or two separate meters can be used, provided the calculation is the same.

For each billing cycle, Regulation 14 separates the two sides:

  • Electricity supplied by the DISCO to the prosumer is billed at the applicable tariff.
  • Electricity supplied by the prosumer to the DISCO is billed at the national average energy purchase price.

If the value of exported electricity exceeds the value of imports, the net amount is credited to the next billing cycle or paid quarterly by the DISCO. The regulation also allows NEPRA to revise the export rate during the agreement, so it is unsafe to quote one “current” export rate without checking the latest notification.

Existing Net-Metering Agreements

The original February text and the later amendment notified as S.R.O. 547(I)/2026 must be read together. The amendment protects approvals, licences, concurrences and agreements executed under the repealed regulations before 9 February 2026: a distributed generator with a valid agreement continues to be billed under the rate and mechanism in that agreement until it expires.

There is an important limit. The amendment says the protection ends where there is a material modification to the distributed-generation facility that changes its maximum electrical output. Before expanding a system, get written confirmation from the DISCO because the impact depends on the agreement and the proposed modification.

What This Means in Practice

The regulations do not supply a universal solar payback figure. A sensible system design should start with your own load profile, tariff category, sanctioned load, daytime consumption, expected exports, battery requirements and the current notified export rate. Retail-panel prices, installer quotations and battery life are market variables—not NEPRA figures—and should be documented separately from regulatory facts.

As an inference from the two different pricing mechanisms, using solar generation at the property can be economically different from exporting it to the grid. That is a design question, not a guarantee that one setup will suit every household. Ask a qualified installer for a written production and load calculation, then compare it with your official bill.

Applying for a New Prosumer Connection

The official regulations define a prosumer as a qualifying 3-phase 400V or 11kV consumer who applies to interconnect an eligible distributed-generation facility. The facility may be up to 1 MW, subject to the regulation and applicable technical requirements.

The regulations say the licensee may recover reasonable costs for interconnection facilities or system improvements required solely for that connection. If the licensee does not have the required meter, the prosumer may procure it, subject to DISCO testing before installation. Do not rely on a single nationwide fee or processing-time claim.

Frequently Asked Questions

Does a new solar connection need two-way metering?
Yes. The 2026 regulations require metering capable of accurately measuring flow in both directions. It may be a single bidirectional meter or two meters that produce the same calculation.

How are imports and exports billed under the 2026 rules?
Imports are billed at the applicable tariff. Exports are billed at the national average energy purchase price. The official regulation—not a blog’s quoted rate—should be checked for the current framework.

Does my pre-9-February-2026 agreement stay on its previous terms?
If it was validly executed before that date, the 2026 amendment preserves the rate and mechanism in the agreement until expiry, subject to the stated rule on material modifications. Read the actual agreement and obtain written confirmation before changing the system.

Can I size a system only around export income?
The regulations do not promise a fixed export rate or investment return. Use verified production assumptions, the latest rate notification and your own consumption profile before committing money.

Official References

IK
Idrees Khan
iBill.pk Owner & Editor
Idrees Khan is the pen name used by the owner and editor of iBill.pk. He has spent over 25 years as an electricity consumer — 15 years with LESCO in Lahore and more than a decade with IESCO in Islamabad. He uses a hybrid solar system and helps families in northern Pakistan choose suitable solar hardware and compare prices.
[email protected]

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