Net metering vs net billing: what changed for solar users in 2026
Who keeps the old terms, who moves to net billing, and what the same month’s bill looks like under each.
NEPRA’s Prosumer Regulations 2026 (S.R.O. 251(I)/2026, 9 February 2026) replaced net metering with net billing for new applicants. Under net billing, every imported unit is billed at the full tariff and every exported unit is bought at the national average energy purchase price, Rs 8.13 in NEPRA’s 2026 determination. Households with a net-metering agreement signed before 9 February 2026, and applications submitted by 8 February, keep the old terms (unit netting, Rs 25.32 buyback) until the agreement expires. Renewals and system expansions move to net billing.
Pakistan had around 456,000–466,000 net-metering consumers and 6–7 GW of net-metered solar by February 2026, with LESCO alone at over 135,000 connections and 2,053 MW by May 2026. That growth, and the cost shifted onto other grid consumers, led NEPRA to change the rules. Here is what changed and whom it affects.
The timeline
| Date | What happened |
|---|---|
| 7 Jan 2026 | NEPRA sets the 2026 national average power purchase price (Rs 25.32) and energy purchase price (Rs 8.13). |
| 9 Feb 2026 | Prosumer Regulations 2026 notified (S.R.O. 251(I)/2026), replacing the 2015 net-metering regulations. |
| 16 Feb 2026 | After a Prime Minister’s directive, NEPRA publishes a draft amendment keeping existing agreements on the old rate and mechanism. |
| 19 Feb 2026 | Applications submitted up to 8 Feb 2026 (5,165 applications, about 251 MW) to be processed under the old rules. |
| ~3 Apr 2026 | Amendment finalised: pre-9-February agreements, approvals and licences are unaffected. |
| 28 Apr 2026 | Licence and fee scrapped for systems up to 25 kW; Rs 1,000/kW one-time fee above that. |
| 26 Aug 2026 | DISCOs told to activate all cases where demand notices were paid before 9 Feb 2026. |
Net metering vs net billing, side by side
| Net metering (pre-2026 agreements) | Net billing (2026 rules) | |
|---|---|---|
| How it settles | Units netted: import minus export, separately in peak and off-peak | Rupees: imports × tariff minus exports × buyback rate |
| Export rate | Rs 25.32 (national average power purchase price, 2026) on net surplus | Rs 8.13 (national average energy purchase price, 2026) on every exported unit |
| Import rate | Only net units charged | Every imported unit charged at the full tariff |
| Settlement period | Quarterly cycle | Monthly; credit to next bill or paid quarterly |
| System size | Up to 1.5× sanctioned load | Up to sanctioned load |
| Agreement | 7 years | 5 years, renewable by mutual consent |
| Who | Agreement before 9 Feb 2026 (or applied by 8 Feb) | New applicants, renewals, expansions; three-phase only |
| Transformer limit | — | No new connections once solar on a transformer reaches 80% of its rating |
The same month under both systems
Take our sample LESCO household’s September: 871 off-peak and 327 peak units imported, 919 units exported, 8 kW sanctioned load with a Rs 2,700 fixed charge. Below is an illustrative month, before FPA and QTA, assuming 18% GST on the net amount and not a settlement month:
| Net metering | Net billing | |
|---|---|---|
| Off-peak | −47 × 25.32 = −1,190 | 871 × 34.53 = 30,076 |
| Peak | 326 × 46.85 = 15,273 | 327 × 46.85 = 15,320 |
| Exports | (netted above) | −919 × 8.13 = −7,471 |
| Fixed charge | 2,700 | 2,700 |
| GST 18% | 3,021 | 7,312 |
| Bill | ≈ Rs 19,800 | ≈ Rs 47,900 |
The same household would pay roughly 2.4 times more under net billing, because daytime imports (mostly at night and early morning) no longer cancel against exports one for one, and exports earn about a third of what they did. Under net billing, what matters is self-consumption: every unit your home uses directly from the panels saves the full tariff, while every unit exported earns only Rs 8.13.
What to do if you are on the old terms
- Don’t expand without thinking. Adding panels or increasing capacity moves you to net billing for the whole connection.
- Find your agreement’s expiry date. The commissioning date is printed as
COMM-DATEin your bill’s net-metering QR; a 7-year agreement runs seven years from around then. - Keep exports within approved capacity. Since April 2026 DISCOs check export MDI, and generation above the approved capacity is treated as zero in billing.
- Plan for renewal. Before your agreement ends, raise daytime self-consumption and consider storage, so the switch to net billing costs less.
What to do if you are new to solar
- Size for your own daytime use, not for export. Exports are worth Rs 8.13; self-use is worth Rs 34.53–46.85 plus tax.
- Check eligibility first: three-phase connection, capacity within sanctioned load, and transformer headroom.
- Consider a hybrid inverter with batteries to move solar into the evening peak.
- See is solar still worth it in 2026 for the payback maths.
Is there a legal challenge?
A petition against the regulations was filed in the Lahore High Court in February 2026. We found no stay order or final ruling as of October 2026. A review petition against the February 2026 fixed charges was also filed with NEPRA in March 2026.
Sources: NEPRA Prosumer Regulations 2026; NEPRA draft amendment, 16 Feb 2026; The Nation, 3 Apr 2026; Arab News, 19 Feb 2026; The News, 28 Apr 2026; The News, 24 Jun 2026; Dawn, 16 Feb 2026.
Questions people ask
Did net metering end in Pakistan?
For new applicants, yes, from 9 February 2026. Existing agreements signed before that date continue under the old net-metering terms until they expire.
Am I on net metering or net billing?
If your net-metering agreement was signed before 9 February 2026, or your application was submitted by 8 February 2026, you are on net metering until the agreement expires. Applications after that are on net billing.
What is the buyback rate under net billing?
The national average energy purchase price set by NEPRA: Rs 8.13 per unit in its calendar-year 2026 determination. Media reports often round it to Rs 10–11. NEPRA can revise it during the agreement.
What is the buyback rate for existing net-metering users?
The national average power purchase price, Rs 25.32 per unit for 2026, applied to net surplus units.
What happens when my 7-year net-metering agreement expires?
Under the 2026 regulations, renewals are on the new terms: net billing with 5-year agreements, renewable by mutual consent.
Will I lose net metering if I add more panels?
Yes. DISCOs have said consumers who expand their capacity after 9 February 2026 are shifted to net billing.
How big can my solar system be under the 2026 rules?
No larger than your sanctioned load. The old rules allowed up to 1.5 times the sanctioned load. Generation above the approved capacity is not credited.
Can single-phase consumers get net billing?
No. The 2026 regulations cover three-phase 400 V and 11 kV connections, from 1 kW to 1 MW.
Do I need a NEPRA licence for rooftop solar?
Not for systems up to 25 kW since April 2026; the DISCO approves them directly. Larger systems pay a one-time fee of Rs 1,000 per kW.
Is net billing settled quarterly?
No, monthly, in rupees. If your export value is larger than your import value, the credit goes to the next bill or is paid quarterly.
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.