Business, farmers reject new net metering regulations 

Business groups and farmers’ representatives across the country have opposed the proposed Net Metering Regulations 2026, warning that the shift from the existing unit-for-unit adjustment system to a net billing regime would increase costs for consumers and discourage investment in solar energy.

Under the proposed framework by the National Electric Power Regulatory Authority (Nepra), consumers will no longer be able to offset electricity supplied to the grid against units consumed. Instead, surplus solar electricity would be purchased at around Rs11 per unit, while grid electricity would continue to be billed at rates reaching up to Rs50 per unit.

Saquib Fayyaz Magoon, Chairman of the Businessmen Panel Progressive and Senior Vice President of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), said the disparity between buying and selling rates would significantly extend the payback period for rooftop solar systems. He noted that households and businesses that invested savings or obtained bank financing for solar installations would face financial strain under the new model.

He added that the commercial sector would bear higher operational costs by purchasing expensive grid electricity while selling surplus solar power at a lower rate, a burden likely to be passed on to consumers. The industrial sector, which has invested heavily in solar energy to manage production costs, could also see reduced competitiveness in export markets.

Magoon expressed concern over Nepra’s proposal to retain authority for revising purchase rates and conducting quarterly reviews, stating that frequent changes could create uncertainty for investors. He called for broader consultation with industry stakeholders before finalising the regulations.

In Lahore, the General Council of Kissan Board Pakistan rejected the proposed changes, describing them as detrimental to farmers who adopted solar systems to operate tube-wells and manage irrigation costs. The organisation said the withdrawal of net metering would increase financial pressure on small and medium farmers.

KBP President Sardar Zafar Hussain Khan and Secretary Dr Abdul Jabbar Khan said farmers had invested in solar systems under an earlier policy framework and now faced uncertainty following the proposed shift. The group demanded that the government and Nepra reconsider the decision and warned of nationwide protests if the policy is not withdrawn.

In Hyderabad, the Hyderabad Chamber of Small Traders and Small Industry also criticised the move. President Saleem Memon said replacing net metering with net billing undermines confidence among traders and investors who made decisions based on existing policy commitments.

Stakeholders from multiple sectors have urged the government to review the proposed regulations and ensure that any policy adjustments balance financial sustainability of the power sector with protection of solar consumers and renewable energy investment.