Explaining net metering vs. net billing in Pakistan

The landscape of renewable energy in Pakistan has faced a dramatic shift in February 2026. After years of incentivizing rooftop solar, the National Electric Power Regulatory Authority (NEPRA) recently notified the Prosumer Regulations 2026, fundamentally altering how solar homeowners are billed. However, following a massive public outcry and political pressure, the federal government has stepped in to pause these changes for current users.

If you are a solar owner or planning to switch, here is everything you need to know about the current status of net metering in Pakistan.

The Great Debate: Net Metering vs. Net Billing

For nearly a decade, Pakistan operated under a net metering system. This was a "unit-for-unit" exchange where every kilowatt-hour (unit) of solar energy you exported to the grid during the day could be used for free at night. Essentially, the national grid acted as a free battery for 466,000 households.

The new net billing system, introduced on February 9, 2026, breaks this 1:1 parity. Under net billing, your imports and exports are treated as two separate transactions:

• Imports: You pay the full retail price (approx. Rs. 50–65 per unit) for electricity taken from the grid.

• Exports: The grid buys your excess solar power at the National Average Energy Purchase Price (NAEPP), which is currently around Rs. 11–13 per unit.

This creates a significant "buy-high, sell-low" gap. Experts suggest that under net billing, you might need to export 5 units during the day just to offset the cost of 1 unit used at night.

On February 12, 2026, Energy Minister Awais Leghari informed the National Assembly that Prime Minister Shehbaz Sharif has halted the transition for existing consumers.  Protection for Old Contracts: Existing solar users (those with active 7-year or 3-year contracts) will remain on the old net metering system for now.

• Government Appeal: The Power Division has been directed to file a review appeal with NEPRA to protect the "contractual obligations" made to people who already invested millions in solar panels.

• New Applicants: While existing users are shielded, new solar connections are expected to fall under the net billing regime, with contract lengths potentially reduced from 7 years to 5 years.   

Why the Sudden Change?

The government cites two primary reasons for the shift:

1. Financial Pressure: DISCOs claim they are losing billions in revenue as wealthier households go "off-grid" while the government still pays billions in "capacity charges" to private power plants (IPPs).

2. The Duck Curve: Massive solar generation at noon causes grid instability, while demand spikes sharply at sunset when solar panels stop working, forcing the grid to ramp up expensive fossil fuel plants instantly.

The Future: Rise of Hybrid Systems

With the uncertainty surrounding grid-buyback rates, many Pakistanis are now moving toward Hybrid Solar Systems. By adding lithium-ion battery storage, homeowners can store their own daytime surplus to use at night, reducing their dependence on the grid and making them immune to future "net billing" policy changes.