Pakistan plans shift from net metering to net billing for rooftop solar users

Pakistan is preparing to phase out its net metering regime and introduce a net billing and gross metering framework for rooftop solar, a move that would significantly lower returns for new solar users and reshape incentives for private investment in distributed energy, The News reported. 

The National Electric Power Regulatory Authority (Nepra) has scheduled a public hearing for February 6 to seek input from consumers, government departments and industry stakeholders before finalising the new regulations.

Under the proposed Prosumer Regulations 2025, future solar consumers will no longer be allowed to offset electricity exported to the grid on a one-for-one basis against power imported from it. Instead, electricity drawn from the grid will be billed at the prevailing national tariff, while surplus solar generation sold to distribution companies will be credited at a fixed, lower rate.

Government officials and power distribution companies argue the shift is necessary to recover grid infrastructure costs and address revenue shortfalls they attribute to the rapid expansion of net-metered solar. Opponents say the proposed changes undermine private investment that helped reduce pressure on the national grid and cut reliance on costly thermal generation.

Nepra last month formally recommended moving future solar consumers to a gross metering system, citing a rising financial burden on conventional grid users. Under the draft rules, new prosumers would sell all electricity generated to distribution companies at a proposed buyback rate of Rs11.30 per unit, while purchasing electricity separately at retail tariffs.

Existing solar consumers with valid seven-year net metering agreements will continue to sell surplus power at around Rs26 per unit until their contracts expire. After that, they will also transition to the new framework. New agreements under the proposed regime will be issued for five years instead of the current seven.

Industry stakeholders have criticised the proposals, arguing that distribution companies sell electricity at around Rs55–60 per unit while buying solar power at nearly one-fifth of that rate. They say the gap shifts costs onto prosumers and weakens the financial case for rooftop solar.

The draft regulations also propose reducing the maximum allowable solar system size from 150% of the sanctioned load to 100%. Stakeholders warn this could discourage optimal system sizing and extend investment payback periods from roughly two years to as much as five.

Nepra maintains that the proposed changes are intended to create a balanced and sustainable framework as it moves to repeal the Net Metering Regulations 2015.