The End of 1:1 Net Metering in Pakistan: A Deep Dive into NEPRA’s 2026 “Prosumer” Regulations

On February 9, 2026, the National Electric Power Regulatory Authority (NEPRA) issued S.R.O 251(I)/26, titled the National Electric Power Regulatory Authority (Prosumer) Regulations, 2026.

While the document title sounds technical, the implications are radical. Effective immediately, the traditional “Net Metering” model—where one unit exported canceled out one unit imported—has been replaced by a “Net Billing” mechanism. This change fundamentally alters the financial feasibility of grid-tied solar systems for both new and existing users.

The Core Change: Net Metering to Net Billing

Under the previous regulation you exported 100 units during the day and consumed 100 units at night, your net bill was zero. Under the new 2026 Regulations, this 1:1 exchange is abolished. The system is now Net Billing:

• Exported Units are sold to the grid at a specific fixed rate.

• Imported Units (consumed at night) are charged at the full tariff rate (including taxes and surcharges).

• The two are calculated separately, meaning you can no longer simply “swap” units.

Impact on New Applicants (Post-Feb 2026)

For homeowners and businesses planning to install solar now, the financial landscape is significantly tougher.

• Export Rate (The Sell Price): New connections will be credited at the National Average Energy Purchase Price, which is currently hovering around Rs. 11 per unit.

• Import Rate (The Buy Price): You will continue to buy electricity from the grid at night at the standard rate, approx. Rs. 45 per unit.

• The “Real” Exchange Ratio: To offset the cost of one unit used at night, you now need to export roughly 4 to 5 units during the day.

  • Old Math: Export 1 unit = Import 1 unit.

  • New Math: Export 5 units = Import 1 unit.

The “On-Grid” (grid-tied without battery) model is virtually dead for new users. Installing a massive system solely to export excess power to zero out your bill is no longer economically viable.

Impact on Existing Solar Users

If you already have a net metering license, you are not entirely safe from these changes, though you are cushioned slightly compared to new applicants.

• Export Rate: Existing users will likely be credited at the National Average Power Purchase Price (a higher tier than new users), currently around Rs. 25–26 per unit.
• The Ratio: You will need to export approx. 2 units to pay for 1 unit consumed at night.
• Contract Duration Reduced: Previously, licenses were valid for 7 years. The new regulations have reportedly capped agreements at 5 years. Once your term expires, you will likely be moved to the lower “New Applicant” rate (Rs. 11/unit).

The S.R.O 251(I)/26 document introduces strict technical barriers to entry:

1. The 80% Transformer Cap: The regulations strictly enforce that no new solar connections will be allowed if the local distribution transformer has reached 80% of its capacity. If your neighbors have already installed solar, you might be blocked from getting a license entirely.

2. Load Flow Studies: For larger systems (distributed generation facilities of 250 kW or more), a mandatory load flow study is required to ensure grid stability.

3. Monthly Settlement: The billing cycle has shifted from quarterly adjustments to strict monthly settlements, reducing the flexibility users had in banking credits across months.

How to Survive the 2026 Rules

With the grid becoming a poor “buyer” of your electricity, the strategy for solar in Pakistan must change from “Maximize Export” to “Maximize Self-Consumption.”

1. Rise of Hybrid Systems: The demand for On-Grid (inverter only) systems will crash. Hybrid inverters that can manage both solar and batteries are now the standard.

2. Batteries are Mandatory: To avoid paying Rs. 45/unit at night, you must store your daytime excess.

   • Lithium Iron Phosphate (LFP) Batteries are now the most critical component of a solar setup.

   • Instead of selling excess solar at Rs. 11, you store it to use at night, effectively saving yourself Rs. 45. This “virtual” savings is now the primary ROI driver.

3. Right-Sizing: Do not oversize your system. Install only enough capacity to power your house during the day and charge your batteries. Excess generation that goes to the grid is now largely wasted capital.

Conclusion:

The good time of selling power to the government is over. The 2026 regulations force Pakistani consumers to become truly independent. If you are planning to go solar, stop looking at the grid as your bank. Invest in batteries, consume what you generate, and minimize your interaction with the utility company.