The National Electric Power Regulatory Authority (NEPRA) has notified new regulations replacing Pakistan’s net-metering framework with a net-billing system for rooftop solar and other small-scale power producers, while allowing existing prosumers to continue under their current contracts until the end of their agreed term.

 

The changes were introduced through the NEPRA (Prosumer) Regulations, 2026, which take effect immediately and repeal the Alternative & Renewable Energy Distributed Generation and Net Metering Regulations, 2015. The new framework applies to solar, wind and biogas systems.

 

Under the revised regime, utilities will purchase surplus electricity generated by prosumers at the National Average Energy Purchase Price (NAEPP), currently around Rs11 per unit, while electricity supplied by distribution companies (Discos) will be billed to consumers at applicable tariffs ranging between Rs37 and Rs55 per unit, excluding taxes, surcharges and duties. The unit-for-unit exchange mechanism under net metering has been discontinued for future connections.

 

Nepra clarified that existing registered prosumers will continue under their present agreements until expiry of their seven-year contracts. Any renewals or extensions after expiry will fall under the new net-billing framework. New applicants will be offered contracts limited to five years, renewable by mutual consent.

 

The regulator notified the rules shortly after holding a public hearing, issuing the same draft without amendments. The notification has prompted claims that net metering has been abolished for all solar consumers, though the regulations maintain the existing contractual protections until expiry.

 

Under net billing, electricity exported by a prosumer is sold to the Disco, while imported electricity is charged at the applicable consumer tariff. “In case the billed amount of the units supplied by prosumers exceeds the billed amount of units supplied by Disco, the net billed amount shall be credited against the prosumer’s next billing cycle or shall be paid by the licensee to the prosumer quarterly,” Nepra stated. Discos have not consistently made such payments in previous arrangements.

 

For existing prosumers, export units will continue to be valued at Rs26 per unit for the remaining contract period, though credits will now be adjusted monthly instead of over three months. 

 

The regulations restrict system size to the consumer’s sanctioned load and bar installations exceeding that limit. Discos are also prohibited from approving new connections if distributed generation capacity connected to a transformer reaches 80 per cent of its rated capacity. Systems of 250kW or above will require a mandatory load flow study.

 

Nepra stated that all interconnection costs, including meters and grid upgrades, will be borne by the prosumer. A non-refundable concurrence fee of Rs1,000 per kilowatt has been introduced, and metering must support two-way measurement through bidirectional or dual meters.

 

Utilities are required to acknowledge applications for interconnection of distributed generation facilities within five working days, complete technical assessments within 15 days and install interconnection facilities within 15 days after payment. Prosumers must also obtain formal concurrence from Nepra, which the regulator said would be issued within seven working days.

 

The Power Division and Nepra have attributed grid pressures and rising capacity charges to the expansion of distributed solar generation. Officials have cited on-grid solar capacity of about 7,000MW and off-grid capacity exceeding 13,000MW, while pointing to widespread use of hybrid systems without meters. The new regulations, however, apply only to metered prosumers.

 

Nepra has previously stated that high electricity costs were driving consumers toward decentralised generation. “Compounded by heavy taxes, levies and surcharges, particularly the Debt Servicing Surcharge, these factors collectively inflate electricity costs for consumers. The result is a shifting of consumers towards decentralised or off-grid solutions,” the regulator said in a recent observation.

 

The regulations also grant Nepra authority to revise purchase rates during the life of agreements, issue binding directions, demand operational data and impose penalties. Discos retain the right to disconnect systems in cases of faults, non-compliance or maintenance, with or without notice, and prosumers are barred from selling electricity to third parties using the utility network.