NEPRA Net Billing Rules 2026: What Changed for Solar Owners in Pakistan

Pakistan ended its old net metering system in February 2026 and replaced it with net billing. Under the new NEPRA Prosumer Regulations 2026, the electricity your rooftop solar sends to the grid no longer cancels out the electricity you take from the grid one for one. Exports are now bought at a wholesale-style price, while the power you import is still billed at the full consumer tariff. This guide explains what changed, the current buyback rates for new and existing connections, the contract terms, and the fees and application steps that apply in 2026.

NEPRA Net Billing: What Changed in 2026?

The National Electric Power Regulatory Authority (NEPRA) notified the NEPRA (Prosumer) Regulations 2026 through S.R.O. 251(I)/2026 on February 9, 2026, with immediate effect. The notification repealed the 2015 Net Metering Regulations, which had let solar owners offset exported units against imported units at the same retail rate.

Under old net metering, one unit exported wiped out one unit imported on your bill. Under net billing, imports and exports are priced separately: grid power is billed at your applicable consumer tariff, and your exported units are credited at the national average energy purchase price (NAEPP), a wholesale-level figure far below the retail tariff. The new rules cover solar, wind, and biogas distributed generation systems up to 1 MW connected through the distribution companies (DISCOs).

NEPRA and the Power Division say the shift addresses rising financial losses and grid stability risks from rapid rooftop solar growth. Officials estimate total rooftop solar capacity at around 6,000 MW nationwide. Press-reported official data says grid electricity sales fell by 3.2 billion units in FY2024, costing distribution companies nearly Rs 101 billion, with Power Division projections of Rs 545 billion in cumulative losses by FY2034 without reform.

What Is the New Buyback Rate for Exports?

For new prosumers, surplus electricity exported to the grid is credited at the national average energy purchase price, currently around Rs 10 to Rs 11 per unit, according to press reporting on the regulations. The older net metering buyback was around Rs 22 to Rs 27 per unit, so the export credit has roughly halved or worse.

The other side of the bill is unchanged. Electricity drawn from the grid is still billed at the prevailing consumer tariff, reported at roughly Rs 37 to Rs 55 per unit before taxes for typical households, and higher for some slabs. That gap between an Rs 11 export credit and a Rs 50 import charge is the whole story of net billing. The NAEPP figure is a national average and may be revised periodically as wholesale electricity prices change, so treat the Rs 10-11 figure as the current reported level, not a fixed promise.

How Do the New Contracts and System Limits Work?

The standard prosumer agreement is now five years, down from seven under the old rules, with renewal subject to mutual consent between the consumer and the distribution company. Any surplus credit you build up is carried to the next bill or paid out quarterly.

System sizing rules also tightened. Distributed generation is allowed from 1 kW up to 1 MW, but the system may not be larger than the consumer’s sanctioned load. Under the old framework, systems could go up to 150 percent of sanctioned load. Oversizing to sell power to the grid no longer has a regulatory home.

Two technical gates apply at the grid level. New connections are not allowed where generation on a distribution transformer already exceeds 80 percent of its rated capacity, and systems of 250 kW or more require a mandatory load flow study before approval. These are reported details from press coverage of the regulations; your DISCO applies them during the technical review.

What Fees and Application Steps Apply in 2026?

Applying as a new prosumer now involves NEPRA directly, and the fee picture changed twice during 2026. Here is the current position based on regulator notifications and press reporting.

• Concurrence fee. New applicants pay a non-refundable concurrence fee of Rs 1,000 per kW of system capacity to NEPRA.
• Licence fee. The original regulations required a licence and a Rs 1,000 per kW fee even for small systems, which drew heavy public criticism as a tax on sunlight. After a directive from the Power Division, NEPRA withdrew the licence requirement and fee for systems of 25 kW or below, with the change deemed effective from February 9, 2026. The withdrawal was announced in late April 2026 and reported by Dawn, Geo, Business Recorder, and others. Systems above 25 kW still pay a one-time licence fee of Rs 1,000 per kW.
• Interconnection costs. The prosumer bears all interconnection costs, including meters and any required grid upgrades.
• Utility timelines. Distribution companies are required to meet set timelines for processing applications, technical reviews, and interconnection, though applicants should follow up at each stage.

One caution: an installer-published summary also claimed NEPRA removed its approval step for sub-25 kW systems in August 2026. I could not verify that claim in press or regulator coverage, so I have left it out. If your installer mentions it, ask for the notification number.

How Does Net Billing Change the Savings Math?

The economics flipped. Under net metering, the saving came from the units you exported. Under net billing, the saving comes from the units you use yourself. Every kilowatt-hour your home consumes directly from your panels avoids buying a unit at Rs 37 to Rs 55, while every kilowatt-hour you export earns only about Rs 11.

That means two things for new systems. First, size the system to your actual daytime consumption, not to maximize exports. Oversized systems that made sense under 1:1 net metering no longer pay back through export credits. Second, shift flexible loads, like water pumps, washing machines, and EV charging, into daylight hours so more of your generation is self-consumed at full retail value.

On payback, published industry estimates vary because they rest on different assumptions. One industry dataset puts export-focused payback at roughly 6 to 8 years under net billing versus 3 to 4 years under the old rules, while an installer guide puts self-consumption-focused systems at 3 to 6 years depending on bill level and usage pattern. Treat these as directional estimates, not regulator figures. The honest rule: the higher your daytime usage and the higher your tariff slab, the faster the payback.

What Should Existing Net Metering Consumers Know?

If you already hold a net metering connection, the new rules do not apply to you yet. Existing prosumers continue under their current contracts until those agreements expire, a protection confirmed in the regulations and in a later NEPRA amendment reported in April 2026.

What happens at expiry is less certain. Press coverage reports that DISCOs have been authorized to either terminate contracts or shift consumers to the new net billing framework once current contracts end, with renewals also discussed as five-year terms under the new rules. Because renewal practice is still taking shape, check the terms your DISCO offers well before your agreement expires rather than assuming automatic continuation.

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What is the current NEPRA buyback rate?

For new prosumers under the 2026 regulations, exported units are credited at the national average energy purchase price, reported at around Rs 10 to Rs 11 per unit. The old net metering buyback of roughly Rs 22 to Rs 27 per unit no longer applies to new connections.

How long is a new net billing agreement?

Five years, renewable by mutual consent. This is down from the seven-year agreements under the old net metering regulations.

Do I need a NEPRA licence for a small home system?

No, if your system is 25 kW or below. NEPRA withdrew the licence requirement and the Rs 1,000 per kW fee for these systems, effective February 9, 2026. Larger systems still need the licence and pay a one-time Rs 1,000 per kW fee.

Can I install a bigger system than my sanctioned load?

No. Under the 2026 regulations, distributed generation is capped at your sanctioned load, and the overall ceiling is 1 MW. The old allowance of up to 150 percent of sanctioned load is gone.

Is solar still worth it in Pakistan under net billing?

For households and businesses with strong daytime electricity use, yes. The financial case now rests on self-consumption: units you use directly still save you the full retail tariff of Rs 40 to Rs 55 or more. Systems designed mainly to export power to the grid will see much longer paybacks than before.

What are the NEPRA net billing rates for 2026?

Under NEPRA net billing, exports earn Rs 10-11 per unit (down from Rs 25.32). The NEPRA net billing contracts run 5 years, so size your system for daytime self-use.

Last reviewed: 11 October 2026

Policy-change disclaimer: NEPRA regulations and tariff figures change. The rules summarized here reflect sources available on the review date, including the February 2026 regulations and the April 2026 licence-fee amendment. Verify the current buyback rate, fees, and application steps with NEPRA or your DISCO before applying.

By TheSolarCost Editorial Team

Sources: NEPRA (Prosumer) Regulations 2026, S.R.O. 251(I)/2026 (via nepra.org.pk, linked from solarnetmetering.pk); Dawn, “Nepra pulls the plug on net-metering” (Feb 10, 2026) and “Nepra abolishes licence requirement, fee for small solar users” (dawn.com); Dialogue Pakistan, “Nepra replaces net metering with net billing under new prosumer rules” (dialoguepakistan.com); Solar Net Metering, “NEPRA Replaces Net Metering with Net Billing” (solarnetmetering.pk/nepra-replaces-net-metering-with-net-billing); Business Recorder, Pakistan Today, Geo News, and Aaj English TV coverage of the April 2026 licence-fee withdrawal.