Net Metering Policy

New Net Metering Policy

What Is Net Metering in Pakistan?

Pakistan’s solar industry has grown rapidly over the past few years, with thousands of residential and commercial consumers shifting to rooftop solar. With this surge in installations, the regulatory framework has also evolved. Recently, the National Electric Power Regulatory Authority (NEPRA) introduced updates to the Net Metering Policy in Pakistan, aiming to balance grid stability, financial sustainability of DISCOs, and continued solar adoption.

In this blog, we’ll break down the new net metering policy, how it affects homeowners and businesses, and what you should consider before installing a solar system in 2026.

Net metering is a billing mechanism that allows solar system owners to export excess electricity back to the national grid and receive credits on their electricity bills.

Under the framework regulated by NEPRA:

  • Consumers install a bi-directional (net) meter

  • Excess solar energy is exported to the grid

  • Units exported are adjusted against imported units

  • The consumer pays only for the net difference

This policy has made solar investment highly attractive across Pakistan.

Key Highlights of the New NEPRA Net Metering Policy (2025)

On 21 December 2025, the Ministry of Energy approved a revised solar framework after discussions with the National Electric Power Regulatory Authority (NEPRA), DISCOs, and other stakeholders.

Under the new decision:

  • The old Net Metering system has been replaced with a Net Billing system

  • Exported solar units will now be paid at a fixed rate

  • Agreement duration has been reduced

  • Licensing requirements have changed

The government stated that the goal is to:

  • Improve grid stability

  • Reduce financial pressure on the power sector

  • Adjust incentives according to current market conditions

Simple Comparison Table

FeatureOld Net MeteringNew Net Billing
Payment per exported unitRs 25.98 per unitRs 11.13 per unit
Adjustment systemUnits adjusted in billUnits bought at fixed rate
Agreement duration7 years5 years
NEPRA licenceNot required (up to 25 kW)Required (up to 25 kW)
Policy typeUnit adjustmentCash-based billing

 

Under the revised policy:

  • Solar users will now receive Rs 11.13 per unit for exported electricity.

  • Previously, users were getting around Rs 25.98 per unit.

The government explained that the old rate was putting financial pressure on the power sector and was not sustainable long-term.

 

What About Electricity You Take From the Grid?

There is no change in how you pay for grid electricity.

You will still:

  • Pay according to NEPRA-approved tariffs

  • Be charged peak and off-peak rates

  • Receive your monthly bill in the same structure

So even under the new system, solar users still pay much less than non-solar consumers — especially when they maximize self-consumption.

Agreement Duration Reduced to 5 Years

Another major change:

  • Solar agreements are now valid for 5 years instead of 7 years

This means:

  • After 5 years, the agreement can be revised

  • Tariff rates may change

  • Users may need to renew their agreement

This gives regulators flexibility to adjust policies in the future.

Will This Policy Affect Existing Solar Users?

Existing users may not face an immediate major impact, but:

  • Winter bills may increase for some users

  • Businesses exporting large units may see lower returns

  • Oversized systems designed only for export will be less profitable

However:

  • Self-consumed solar energy still gives maximum savings

  • Electricity prices from the grid are still high

  • Solar remains cheaper long-term

Is Solar Still a Good Investment in Pakistan?

Yes ✅

Even with the new policy, solar energy remains one of the smartest investments in Pakistan.

Key Benefits:

✔ Protection against rising electricity prices
✔ Reduced dependency on DISCOs
✔ Clean, renewable energy
✔ 20–25 year system life
✔ Increased property value

The key strategy now is:

👉 Focus on self-consumption, not export profit.

At SiSUN ELECTRIC, we design systems that maximize daytime usage so our clients get the best ROI under the new net billing framework.

Frequently Asked Questions (FAQs)

What is the difference between net metering and net billing?

Net metering adjusts units against your bill. Net billing pays you a fixed rate for exported units.

Will my electricity bill increase?

Yes, but still it depends on your export ratio. If you consume most of your solar energy during the day, your bill will still remain low.

Do I need a licence for my small solar system?

Yes. Under the new rules, systems up to 25 kW now require licensing.

How long is the new agreement valid?

5 years.

Is solar still worth investing in?

Yes. When properly designed, a solar system significantly reduces electricity bills and, when paired with a hybrid inverter or battery system, provides reliable backup during load shedding.

Does SiSUN ELECTRIC offer alternative solutions under the new net billing policy?

Yes. SiSUN ELECTRIC designs customized solar systems that maximize daytime self-consumption to reduce dependency on exported units. We also provide load optimization strategies, system right-sizing, and complete net billing compliance to ensure the best possible ROI.

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