ISLAMABAD: Pakistan has overhauled its rooftop solar framework, replacing the long-running net metering system with a net billing regime that lowers the rate paid to households and businesses for surplus electricity exported to the national grid.
The revised rules were notified on February 9, 2026, by the National Electric Power Regulatory Authority (NEPRA), the country’s power sector regulator. Under the new framework, electricity exported by solar users will be purchased by distribution companies at the national average energy purchase price, rather than the higher retail tariff previously applied under net metering.
The change separates the prices at which consumers buy electricity from the grid and sell excess power back to utilities. Consumers will continue to pay applicable retail tariffs for grid electricity while receiving a lower, market-linked rate for exported solar power.
Pakistan has witnessed rapid growth in rooftop solar adoption over the past three years, driven by record-high electricity tariffs, frequent outages, and rising fuel costs. Official data shows solar energy’s share in the power mix rose from around 4 percent in 2021 to between 14 and 25 percent in 2024–25.
Industry estimates indicate Pakistan imported approximately 22 gigawatts of solar panels in 2024, placing the country among the world’s fastest-growing solar markets. Tens of thousands of new rooftop connections have been added annually, significantly reducing daytime demand from the grid.
Power distribution companies, however, have raised concerns that net metering was eroding revenues, increasing losses, and shifting costs onto non-solar consumers. The power sector continues to face financial strain due to high transmission and distribution losses, rising subsidies, and persistent circular debt.
NEPRA said the revised framework seeks to balance renewable energy expansion with grid stability and financial sustainability.
The new regulations apply to distributed generation systems using solar, wind, or biogas technologies with an installed capacity of up to one megawatt. System capacity may not exceed a consumer’s sanctioned load, and utilities may restrict new connections if power injections exceed 80 percent of a local transformer’s rated capacity.
Projects above 250 kilowatts will require mandatory technical studies before approval. All new net billing agreements will be signed for five years and renewed under the updated rules.
Existing net-metered consumers will remain on their current contracts until expiry, after which they will transition to the net billing system.
