Fixed charges, FPA, QTA and taxes on a solar bill, explained
The parts of your bill that solar can’t touch: what each one is, how it is calculated in 2026, and which are going up or down.
Since February 2026, domestic bills carry a fixed charge per kW: time-of-use and most solar connections pay Rs 675 per kW per month on the higher of half the sanctioned load or the MDI (Rs 1,687.50 for 5 kW). FPA is a monthly fuel cost adjustment billed two months later; QTA is a quarterly adjustment spread over three months. GST is 18%. Income tax of 7.5% applies to non-filers with a bill of Rs 25,000 or more. Electricity duty and the Rs 35 PTV fee were dropped from most domestic bills in July 2025. None of these are reduced by solar exports, except that GST follows the energy charge.
A solar system can wipe out a lot of your energy charge, but some lines on the bill don’t depend on units at all, and others are set by NEPRA after the fact. Here is each one as it stands in October 2026.
Fixed charges (since February 2026)
NEPRA’s tariff rationalisation (decision of 11 February 2026, notified as S.R.O. 279(I)/2026) moved part of the cost of the grid into a monthly fixed charge per kW. For domestic consumers:
| Consumer | Rs per kW per month |
|---|---|
| Lifeline (up to 100 units) | none |
| Protected, 1–100 units | 200 |
| Protected, 101–200 units | 300 |
| Unprotected, 1–100 / 101–200 units | 275 / 300 |
| Unprotected, 201–300 / 301–400 / 401–500 | 350 / 400 / 500 |
| Unprotected, over 500 units | 675 |
| Time-of-use (A-1b, 5 kW and above) | 675 |
Non-time-of-use consumers pay on their sanctioned load. Time-of-use consumers, which includes most solar homes, pay on 50% of sanctioned load or their MDI, whichever is higher:
5 kW sanctioned, MDI 2 kW → 2.5 × 675 = Rs 1,687.50
8 kW sanctioned, MDI 4 kW → 4.0 × 675 = Rs 2,700.00
15 kW sanctioned, MDI 6 kW → 7.5 × 675 = Rs 5,062.50GST at 18% is added. The fixed charge is not reduced by exports, so it is the floor of every solar bill. A review petition against the fixed charges was filed with NEPRA in March 2026.
Check: your MDI is printed on the bill. If a single high-load moment (several ACs and a pump at once) pushes MDI above half your sanctioned load, it raises that month’s fixed charge.
Per-unit rates in 2026
| Domestic tariff | Rs per unit |
|---|---|
| Time-of-use, peak | 46.85 |
| Time-of-use, off-peak | 34.53 |
| Protected 1–100 / 101–200 | 10.54 / 13.01 |
| Unprotected 1–100 / 101–200 / 201–300 | 22.44 / 28.91 / 33.10 |
| Unprotected 301–400 / 401–500 / 501–600 | 36.46 / 38.95 / 40.22 |
| Unprotected 601–700 / over 700 | 41.85 / 47.20 |
Tariffs are now rebased every calendar year rather than every July. NEPRA’s hearings on the 2027 tariffs are scheduled for 13–15 October 2026, so expect new rates from January 2027.
Fuel price adjustment (FPA / FCA)
Each month, the actual fuel cost of generation is compared with NEPRA’s reference. The difference, per unit, is added to (or refunded on) bills two months later. Lifeline, prepaid and EV-charging consumers are exempt.
- July 2026 adjustment: +Rs 2.06 per unit, billed in September 2026.
- August 2026 adjustment: about +Rs 1.73 per unit requested for October 2026 bills; NEPRA’s decision was pending at the time of writing.
FPA is a per-unit charge, so how it is applied to a net-metering bill depends on the units your DISCO bills it on. If it seems large on a month you had few net units, compare it with the FPA per unit and your import units.
Quarterly tariff adjustment (QTA)
QTA passes through changes in capacity payments and other fixed costs. NEPRA decides it each quarter and it is spread over three billing months:
- March – May 2026: +Rs 0.35 per unit
- June – August 2026: −Rs 1.99 per unit (a reduction)
- September – November 2026: +Rs 0.52 per unit
Taxes
| Tax | Who pays | Rate |
|---|---|---|
| GST | Everyone | 18% of energy charge + fixed charge (+ duty if any) |
| Income tax (s.235) | Domestic non-filers, bill ≥ Rs 25,000 | 7.5% |
| Further tax | Non-domestic consumers without a sales-tax registration | Commonly 4% (some sources say 3%) |
| Extra tax | Unregistered commercial and industrial | 5–17% |
| Electricity duty | Removed for domestic consumers from July 2025 | Older bills: 1–3% (provincial) |
| PTV fee | Removed from July 2025 | Was Rs 35/month |
GST and solar: in February 2025 the Federal Tax Ombudsman ordered DISCOs to charge GST on the gross value of imported units, not the net after exports. How consistently ex-WAPDA DISCOs apply this varies; if your GST is well above 18% of your net energy charge plus fixed charge, this is the likely reason. Income tax: getting onto the Active Taxpayers List with the meter in your name removes the 7.5% charge.
Debt service surcharge
A surcharge of Rs 3.23 per unit services the Rs 1.225 trillion power-sector loan taken in 2025 and is expected to stay for up to about six years. Protected domestic consumers are excluded.
What solar can and can’t reduce
| Line | Reduced by solar? |
|---|---|
| Energy charge (COE) | Yes: off-peak fully, peak only by moving or avoiding evening use |
| Fixed charge | No |
| FPA / QTA | Partly, through fewer billed units |
| GST | Follows the energy charge, unless billed on gross imports |
| Income tax | Yes, if the bill falls under Rs 25,000; or become a filer |
Sources: NEPRA tariff decision 11 Feb 2026; ProPakistani 4 Mar 2026 (fixed charges); Dawn and Express Tribune (FPA, QTA); ProPakistani 1 Jul 2025 (electricity duty); Profit 27 Aug 2025 (PTV fee); Profit 15 Jan 2026 (debt surcharge); Dawn, Feb 2025 (FTO order on GST).
Questions people ask
Why is there a fixed charge on my bill now?
NEPRA’s tariff rationalisation in February 2026 introduced fixed charges per kW for domestic consumers, alongside lower per-unit rates for many users. Time-of-use and most solar homes pay Rs 675 per kW per month.
How is the fixed charge calculated for net-metering users?
For time-of-use connections, Rs 675 × the higher of 50% of your sanctioned load or your MDI (maximum demand) that month. An 8 kW connection with an MDI of 4 kW pays 4 × 675 = Rs 2,700, plus GST.
What is FPA on an electricity bill?
Fuel price adjustment (also called FCA, fuel charges adjustment). If the fuel cost of generating electricity in a month differs from NEPRA’s reference, the difference is added to or refunded on bills two months later, per unit. For example, the July 2026 adjustment of Rs 2.06 per unit was billed in September 2026.
What is QTA on my bill?
Quarterly tariff adjustment: changes in capacity payments and other costs, decided by NEPRA each quarter and spread over three months of bills. For September to November 2026 it is an increase of about Rs 0.52 per unit.
Is PTV fee still charged on electricity bills?
No. The Rs 35 PTV fee was removed from electricity bills from July 2025.
Is electricity duty still charged?
For most domestic consumers, no. The federal government asked provinces to stop collecting it through electricity bills from 1 July 2025. Punjab later imposed a small duty only on large commercial and industrial users.
Why is income tax deducted on my electricity bill?
Under section 235 of the Income Tax Ordinance, domestic consumers not on the FBR Active Taxpayers List pay 7.5% income tax when the monthly bill is Rs 25,000 or more. Filers are exempt if the meter is in their name.
Can a net-metering consumer be a protected consumer?
Usually not. Protected status needs 200 units or fewer in each of the previous six months on a non-time-of-use connection, and time-of-use connections (5 kW and above), which most solar homes have, cannot be protected.
Is GST charged on my exported units?
Exported units are not taxed. A 2025 Federal Tax Ombudsman order told DISCOs to charge GST on the gross value of imported units rather than the net after exports. Where DISCOs apply it, GST on a solar bill is higher than 18% of the net energy charge.
Solar Bill is independent and not affiliated with NEPRA, PITC or any DISCO. Rates, taxes and rules change; your DISCO’s bill is the official record. Policy facts above link to their public sources.