Pakistan’s solar power consumers are likely to face reduced financial benefits as the National Electric Power Regulatory Authority (Nepra) moves to revise existing net-metering rules. The focus keyword Nepra solar net metering has gained attention after the regulator announced a public hearing on February 6 to discuss proposed regulatory changes aimed at updating the country’s rapidly expanding on-grid solar framework.
Nepra confirmed that it received feedback from a wide range of stakeholders, including government departments, power distribution companies, industry representatives, and members of the public. In response, the authority has invited all concerned parties to share their views during the hearing before final decisions are taken.
Proposed changes under new prosumer rules
The regulator has released draft Prosumer Regulations 2025, which suggest significant amendments to the current net-metering system. One of the key proposals is to cap new solar installations at a consumer’s sanctioned electricity load. At present, consumers are allowed to install solar capacity up to 150 percent of their approved load, a provision that encouraged larger rooftop systems.
Under the draft rules, existing net-metering consumers will not be immediately affected. They will continue operating under their current seven-year agreements until the contracts expire. However, new applicants may face stricter terms. Nepra has proposed reducing the contract duration for new net-metering connections from seven years to five years, with any extension subject to mutual agreement between the consumer and the utility.
The authority has also proposed to directly regulate and license solar power systems ranging from one kilowatt to one megawatt. This move is intended to improve oversight as rooftop and small-scale solar installations continue to grow nationwide.
Shift from net metering to net billing
Another major change under the Nepra solar net metering proposals involves how surplus electricity is compensated. Nepra plans to replace the existing net-metering mechanism with a net-billing system. Under this model, electricity imported from the grid will be charged at the applicable consumer tariff, while surplus power exported to the grid will be credited at the national average energy purchase price.
Currently, solar consumers receive around Rs. 26 per unit for excess electricity. The proposed rate is estimated at about Rs. 13 per unit, nearly half of the existing return. This adjustment is expected to significantly affect payback periods for new solar investments.
Nepra has stated that these measures are designed to balance consumer incentives with the financial sustainability of the power sector, as on-grid solar capacity continues to rise across Pakistan. The final outcome will depend on stakeholder input and the regulator’s assessment following the public hearing.