Nepra Net Billing Policy Criticism Grows Over Rooftop Solar Impact

The Nepra net billing policy criticism has intensified after Pakistan’s power regulator decided to replace the net metering system with a new net billing framework under the Prosumer Regulations 2026. Political leaders, analysts, and energy experts say the move could discourage rooftop solar adoption and deepen existing inefficiencies in the power sector.

The National Electric Power Regulatory Authority (Nepra) announced that utilities will now purchase surplus electricity from consumers at the national average energy purchase price. Meanwhile, consumers will continue to pay the standard retail tariff for electricity drawn from the grid. This effectively ends the one-for-one unit exchange that existed under net metering.

Former Sindh governor Mohammad Zubair strongly criticised the decision. He questioned why citizens should bear additional costs due to what he described as government inefficiency. Similarly, PPP Senator Sherry Rehman warned that the new rules could slow Pakistan’s transition to cleaner energy and contradict climate commitments. She argued the change would penalise households generating affordable renewable power.

Activist Ammar Rashid also called the policy “disastrous.” He claimed it may deliberately slow consumer-led clean energy growth while protecting entrenched interests in the power sector. However, some experts offered a more measured view. Former official Shahid Shafi Sial said the shift addressed a long-standing anomaly but admitted it would not resolve deeper structural issues such as capacity payments.

The Nepra net billing policy criticism also focused on pricing differences. Former finance minister Miftah Ismail highlighted that consumers may pay around Rs40 per unit for electricity while receiving roughly Rs11 for excess solar power. According to him, this imbalance benefits the state but appears unfair to citizens.

Several opposition leaders echoed similar concerns. PTI’s Taimur Saleem Khan Jhagra suggested the decision might push consumers toward battery storage and off-grid solutions. Fawad Chaudhry framed the move as part of a broader burden on domestic users, while Hammad Azhar warned that inconsistent policymaking could weaken trust in the energy sector and even make the national grid less relevant over time.

Under the new regulations, distributed generation facilities will be capped at one megawatt, with capacity linked to the consumer’s sanctioned load. New connections may also face restrictions if transformer generation reaches 80% capacity. Additionally, systems producing 250kW or more must undergo a load-flow study.

Financial responsibilities have shifted as well. Prosumers will now cover interconnection costs, including meters and potential grid upgrades. Nepra has also introduced a non-refundable fee of Rs1,000 per kilowatt and reduced standard contract terms from seven years to five. Still, existing prosumers will remain under their current agreements until they expire.

The policy applies to solar, wind, and biogas systems and allows Nepra to revise purchase rates during active agreements. While officials present the framework as a regulatory adjustment, critics argue it could reshape Pakistan’s renewable energy landscape at a time when demand for affordable electricity continues to rise.