06/03/2026
Major Changes to Solar Net-Metering in Pakistan
Incentives for rooftop solar adoption in Pakistan have been drastically reduced after the National Electric Power Regulatory Authority (NEPRA) decided to replace the net-metering framework with net-billing for both existing and future solar prosumers.
Under the new regulations, export credits have been significantly reduced and system capacity limits have been tightened to the original sanctioned load, effectively cutting the permissible solar installation capacity by nearly 50% in many cases.
The revised policy also changes how surplus electricity is compensated. Excess solar power will now be purchased from consumers at around Rs 10 per unit, while grid electricity continues to be sold at Rs 37β55 per unit. In addition, previously approved seven-year net-metering agreements will be shifted to the new billing methodology, raising concerns about regulatory certainty.
The government and regulator argue that these measures are necessary to protect grid stability and control the impact of growing solar pe*******on, which they claim increases capacity payment burdens in the power sector.
However, the decision has drawn strong criticism from analysts and political stakeholders. Many argue that penalizing solar users β who represent roughly 1% of electricity consumers β will not solve deeper structural problems in the power sector, such as line losses, inefficiencies, and long-term capacity payments to power producers.
Energy experts also warn that the policy could discourage investment in rooftop solar and push some consumers toward off-grid solutions, potentially weakening the national grid rather than strengthening it.
According to the Sustainable Development Policy Institute, rooftop solar and net-metering should be viewed as strategic tools for energy transition, not as liabilities. Instead of discouraging distributed generation, policymakers should focus on improving transmission infrastructure, modernizing grid management, and enhancing grid flexibility.
As global energy systems move toward decentralized and renewable power, Pakistanβs policy direction raises important questions about regulatory autonomy, long-term planning, and the countryβs commitment to clean energy transition
