National Electric Power Regulatory Authority (Nepra) has proposed replacing the existing net metering regime with a gross metering mechanism for new rooftop solar consumers, citing rising financial and operational pressures on the electricity grid and non-solar consumers, The News reported.
The proposed shift follows concerns that the current net metering system is imposing an estimated burden of up to Rs2 per unit on conventional grid consumers.
Under the draft Nepra Prosumer Regulations, future domestic solar installations would trade electricity with their respective distribution companies through gross metering instead of net metering.
However, existing net metering consumers with valid seven-year agreements will continue to sell surplus electricity at Rs22 per unit until their contracts expire.
For new solar connections, Nepra has proposed a gross metering buyback tariff of Rs11.30 per unit. These contracts would be valid for five years, with the option of extension by mutual consent. The regulator has invited comments from stakeholders and consumers within 30 days and may hold a public hearing before finalising the framework.
During a meeting on October 22, Prime Minister Shehbaz Sharif directed the Power Division and Nepra to review the buyback tariff and assess its wider impact before introducing reforms.
Under net metering, electricity exported to the grid is offset against electricity imported, lowering consumer bills. In contrast, gross metering compensates all exported electricity at a fixed feed-in tariff, while grid consumption is billed separately at prevailing retail rates.
Official data shows that rapid growth in rooftop solar led to a decline of 3.2 billion units in grid electricity sales in FY2024, resulting in revenue losses of around Rs101 billion for distribution companies and contributing to an average tariff increase of Rs0.9 per kWh for other users.
Power Division projections indicate that by FY2034, lost grid sales could reach 18.8 billion units, with an estimated financial impact of Rs545 billion and a potential tariff increase of Rs5–6 per unit.
Officials argue that net metering allows solar consumers to sell surplus power at higher rates while avoiding fixed grid costs, even as utility-scale solar projects are being contracted at tariffs below Rs10 per unit.
Authorities have also flagged operational risks from the rapid expansion of net-metered solar capacity, now estimated at around 6,000MW nationwide. During winter months, when electricity demand drops to 8,000–9,000MW, excess daytime generation could strain grid stability. Concerns have also been raised over cases where consumers exceed sanctioned load limits when exporting power. To address monitoring issues, distribution companies have begun installing smart meters to enable real-time tracking and control of electricity exports.
Nepra officials said the proposed gross metering framework is intended to limit further tariff pressure on grid-dependent consumers while ensuring a more balanced cost-sharing mechanism.
