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April 3, 2026

NEPRA protects existing solar net metering users, restricts system expansion benefits

Amendment has been given retrospective effect from February 9, 2026, providing legal cover to the updated provisions; Old agreements remain valid, but modified systems to lose earlier tariff advantages

Monitoring Report

Monitoring Report

April 3, 2026

NEPRA protects existing solar net metering users, restricts system expansion benefits

The National Electric Power Regulatory Authority has amended its Solar Regulations 2026, confirming that existing net metering consumers will retain their current billing arrangements while imposing limits on benefits for system expansions.

In a notification issued on Thursday, the power regulator stated that approvals, licences and agreements issued under previous regulations will remain valid, ensuring that existing solar users continue under the same terms until expiry of their contracts.

The authority clarified that consumers operating under valid agreements will be billed according to earlier rates and mechanisms, maintaining continuity despite recent policy changes in the solar framework.

However, the revised rules restrict financial benefits where users make material changes to their systems. Any modification that increases the maximum electrical output will result in the loss of tariff advantages associated with previous arrangements.

The amendment has been given retrospective effect from February 9, 2026, providing legal cover to the updated provisions.

The clarification follows the regulator’s earlier decision to move away from unit-for-unit net metering to a net billing system for solar consumers. The latest changes retain existing contracts while tightening rules for future system upgrades.

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