Updated: August 2026
Net metering in Pakistan, as consumers knew it, ended on 9 February 2026. On that date NEPRA notified the Prosumer Regulations 2026 (SRO 251(I)/2026), which replaced the 2015 net metering framework with net billing. If you apply for a solar connection today, your DISCO buys your exported units at the National Average Energy Purchase Price — around Rs 10–11 per unit as of the latest notifications — while you keep paying your normal slab tariff of Rs 22.44 to Rs 47.20 per unit base, before taxes, for every unit you import. If you signed a net metering agreement before 9 February 2026, you are protected: your one-to-one unit offset and your old buyback rate (around Rs 25–27 per unit) stay in place until your seven-year agreement expires.
That single change reshaped the economics of rooftop solar for new buyers without killing them. A right-sized 5kW system still pays for itself in about four and a half years under net billing; it just no longer does so in under three.
This guide explains the current ruleset as it stands in August 2026, in plain language: what net billing actually is, what the rates are, how to apply through your DISCO, what the green meter costs, honest payback math at today’s tariffs, and the grandfathering rules if you already have net metering. No sales pitch — we don’t sell solar panels. We help you read electricity bills.
The short version
| Question | Answer (August 2026) |
|---|---|
| Can I still get net metering? | No. New applications from 9 February 2026 onward fall under net billing (NEPRA Prosumer Regulations 2026). |
| What do I earn per exported unit? | The National Average Energy Purchase Price — roughly Rs 10–11 per unit as of the latest notifications. NEPRA revises it periodically. |
| What do I pay per imported unit? | Your normal residential slab rate: Rs 22.44 to Rs 47.20 base (SRO 279(I)/2026), more after taxes and surcharges. |
| I already have net metering — am I safe? | Yes. Agreements valid before 9 February 2026 keep the old one-to-one offset and old buyback rate until the agreement expires. |
| Agreement length? | 5 years (renewable) for new prosumers; existing 7-year agreements run their course. |
| Licence needed? | Not below 25kW. NEPRA abolished the licence and the Rs 1,000-per-kW fee for small systems in April 2026, retroactive to 9 February. |
| Is solar still worth it? | Usually yes — payback of roughly 4.7 years for a right-sized 5kW system, versus under 3 years under the old rules. |
What net metering was — and what net billing is
Net metering (2015–2026) worked in units. A bidirectional meter counted units you drew from the grid and units your panels pushed back. At billing time, exports cancelled imports one-for-one. Send 300 units to the grid, take 300 back at night, and your energy charge was zero — even though daytime solar units and evening peak units cost the system very different amounts. Any surplus left over after the offset was purchased from you at a NEPRA-determined rate that had climbed to roughly Rs 25–27 per unit by 2025.
Net billing (from 9 February 2026) works in rupees. The meter still records both flows, but they are priced separately and settled monthly:
- Imports are billed at your applicable consumer tariff — the same slabs, taxes and surcharges as any other household.
- Exports are purchased at the National Average Energy Purchase Price (NAEPP) — the average rate at which DISCOs buy energy in bulk, currently in the Rs 10–11 range.
The gap is the whole story. You sell at roughly Rs 11 and buy at Rs 33–47 base (Rs 41–58 once taxes and surcharges pile on). One exported unit no longer cancels one imported unit; it takes three to four exported units to pay for one imported unit at the higher slabs.
A quick example. Say your panels export 100 units during the day and you import 100 units at night, and your monthly imports land in the 301–400 slab (Rs 36.46):
| System | Export credit | Import charge | Net energy position |
|---|---|---|---|
| Old net metering | 100 units offset | 100 units offset | Rs 0 |
| Net billing 2026 | 100 × Rs 11 = Rs 1,100 | 100 × Rs 36.46 = Rs 3,646 | Rs 2,546 payable |
Same panels, same sun, same meter — a Rs 2,546 difference per 100-unit swap. That is why self-consumption (using your solar power while it is being generated) now matters more than raw system size.
What exactly changed on 9 February 2026
NEPRA’s Prosumer Regulations 2026 repealed the NEPRA (Alternative & Renewable Energy) Distributed Generation and Net Metering Regulations, 2015. The key differences, as notified and reported by Dawn on 10 February 2026:
| Rule | Old net metering (2015 regs) | Net billing (2026 regs) |
|---|---|---|
| Settlement basis | Units — one-to-one offset | Rupees — imports and exports priced separately |
| Export rate | ~Rs 25–27 per unit for net surplus (as revised over the years) | NAEPP, ~Rs 10–11 per unit |
| Settlement period | Quarterly (three-month rolling credit) | Monthly |
| Agreement length | 7 years | 5 years, renewable |
| System size cap | Up to 1 MW; capacity margin above sanctioned load allowed | Up to 1 MW, but not more than your sanctioned load |
| Local grid cap | — | DISCOs can refuse new connections where cumulative solar on a transformer is already high (reported at 80% of transformer capacity) |
| Licence & fee | Distributed generation licence via NEPRA | No licence or fee below 25kW (since April 2026); Rs 1,000 per kW above 25kW |
Two follow-up developments matter just as much as the original notification:
The grandfathering fix. The February notification triggered public backlash, because early reporting suggested even existing net metering consumers would be shifted to monthly settlement. Within days the Prime Minister directed the Power Division to seek a review, and NEPRA floated a protective draft amendment on 16 February. The final amendment was notified in early April 2026, retrospective to 9 February: approvals, licences and agreements issued under the 2015 regulations stay valid on their original terms until they expire. One catch made it into the final text: any modification that increases a system’s maximum output forfeits the old tariff terms. Separately, the roughly 5,165 applications still pending on 8 February 2026 (about 251MW of capacity) were directed to be processed under the old framework.
The licence rollback. In April 2026 NEPRA abolished the licence requirement and the Rs 1,000-per-kW fee for systems below 25kW, retroactively effective from 9 February 2026. Practically every home system falls under this threshold, so if an installer quotes you a “NEPRA licence fee” for a 10kW rooftop system in 2026, that fee no longer exists. Systems of 25kW and above — commercial and industrial mostly — still need the licence and pay Rs 1,000 per kW.
Current rates: what you earn vs what you pay
The asymmetry drives every solar decision in 2026, so put the numbers side by side. Export earnings first: the NAEPP is determined by NEPRA and moves with the country’s generation cost mix. Press reports on the February 2026 notification placed it at Rs 10–11 per unit, and mid-2026 industry guides quote Rs 11–13. Treat “around Rs 11” as the planning figure and check the latest NEPRA determination before signing anything.
Import costs are your ordinary residential slabs. These are the uniform base rates for unprotected residential consumers as of August 2026, notified in SRO 279(I)/2026 and effective from 12 February 2026 — the same table published on the IESCO and FESCO tariff pages. That notification cut the four top slabs by Rs 0.49 to Rs 1.53 per unit and left everything at or below 300 units untouched. See our full per-unit price breakdown for every category and the surcharges that sit on top.
| Monthly slab (units) | Base rate (Rs/unit), Aug 2026 | Vs Rs 11 export: units to sell per unit bought |
|---|---|---|
| 1–100 | 22.44 | ~2.0 |
| 101–200 | 28.91 | ~2.6 |
| 201–300 | 33.10 | ~3.0 |
| 301–400 | 36.46 | ~3.3 |
| 401–500 | 38.95 | ~3.5 |
| 501–600 | 40.22 | ~3.7 |
| 601–700 | 41.85 | ~3.8 |
| Above 700 | 47.20 | ~4.3 |
Rates as of August 2026. Two caveats before you build a 25-year spreadsheet on them: a NEPRA review petition filed in March 2026 against the new fixed charges was still pending as of August 2026, and a further government tariff package was under discussion in late July 2026. Treat this table as currently applied, not settled.
One billing rule matters enormously for solar math: unprotected consumers get no previous-slab benefit. Your entire month’s imports are billed at the single slab your total lands in: import 401 units instead of 400 and all 401 are charged at the higher rate. Solar that pulls your monthly imports down into a cheaper slab therefore saves you twice.
One thing solar cannot switch off: since February 2026 every residential bill except lifeline also carries a fixed charge in rupees per kW of sanctioned load, billed even in a zero-consumption month. Because net metering applicants need a sanctioned load at least as large as their system, that line is not trivial — and it is slab-linked, so a month whose imports drop into a lower slab also drops to a lower per-kW rate. The payback math below ignores this saving entirely, which makes the estimates conservative.
Whether you sit on protected or unprotected slabs changes the arithmetic — if you’re unsure which you are, read our guide on protected vs unprotected consumers. Note that net metering has historically been a three-phase, sanctioned-load game, so most applicants are unprotected consumers on the higher slabs anyway.
Grandfathering: what existing net metering holders keep
If your net metering agreement was validly signed before 9 February 2026, the 2026 regulations do not rewrite it. As of August 2026:
- Your one-to-one unit offset stays. Exports keep cancelling imports for the remaining term of your agreement.
- Your buyback rate stays. Net surplus units continue to be purchased at the rate applicable under your agreement — around Rs 25–27 per unit for most recent signings.
- Your term runs its course. Old agreements were for seven years. An agreement signed in, say, March 2024 keeps old-rules treatment until March 2031.
- Expiry means net billing. When the agreement ends, renewal happens under the Prosumer Regulations 2026 — five-year term, NAEPP export rate, monthly settlement. There is no mechanism to renew on old terms.
Two practical warnings. First, grandfathering attaches to the agreement, not the house. If you sell the property, transfer the electricity connection and the net metering agreement properly — a botched transfer can cost the buyer the old terms. Ask your DISCO for the prosumer/net-metering transfer procedure alongside the normal change-of-name process. Second, don’t “upgrade” a grandfathered system. The April 2026 amendment is explicit: any modification that increases your system’s maximum output forfeits the old tariff terms — the whole system moves onto net billing, not just the added panels. Get the DISCO’s position in writing before touching an existing installation.
Is solar still worth it in 2026? The honest math
Short answer: yes for most three-phase households with real daytime consumption, but the case now rests on avoiding imports, not on selling exports. Let’s work it through at current rates, using base energy charges (taxes and surcharges are excluded on both sides, which makes these estimates conservative — the real gross saving is higher because taxes scale with the bill).
Assumptions: a well-installed system in central Punjab yields about 120 units per kW per month averaged across the year. Export rate Rs 11. Unprotected residential slabs as tabled above, applied to the whole month’s imports — no slab benefit.
5kW system — Rs 850,000 installed (typical mid-2026 quote range: Rs 750,000–950,000)
Household uses 600 units a month. The system generates ~600 units: 250 consumed directly during the day, 350 exported. The house still imports 350 units, mostly at night.
| Without solar | With 5kW + net billing | |
|---|---|---|
| Units imported | 600 | 350 |
| Energy charge | 600 × Rs 40.22 = Rs 24,132 | 350 × Rs 36.46 = Rs 12,761 |
| Export credit | — | 350 × Rs 11 = Rs 3,850 |
| Net energy cost | Rs 24,132 | Rs 8,911 |
Monthly saving: Rs 15,221. Annual: about Rs 182,650. Payback on Rs 850,000: roughly 4.7 years. Notice the slab effect working for you: cutting imports from 600 to 350 units moves every imported unit from the Rs 40.22 slab down to Rs 36.46. Under the old net metering rules the same setup offset everything — energy charge zero, Rs 24,132 saved a month, payback around 2.9 years. That is the real cost of the policy change: nearly two years of extra payback for a typical home.
10kW system — Rs 1,550,000 installed (typical range: Rs 1,400,000–1,750,000)
Household uses 800 units a month. The system generates ~1,200 units: 350 self-consumed, 850 exported; 450 units still imported.
| Without solar | With 10kW + net billing | |
|---|---|---|
| Units imported | 800 | 450 |
| Energy charge | 800 × Rs 47.20 = Rs 37,760 | 450 × Rs 38.95 = Rs 17,528 |
| Export credit | — | 850 × Rs 11 = Rs 9,350 |
| Net energy cost | Rs 37,760 | Rs 8,178 |
Monthly saving: Rs 29,583. Annual: about Rs 355,000. Payback: roughly 4.4 years. The number looks healthy for one specific reason: without solar this house sits in the above-700 slab at Rs 47.20. Cutting imports to 450 pulls every remaining unit down into the Rs 38.95 slab as well. The trap is the export share. This system sends out 70% of what it makes, and each of those 850 units earns Rs 11 instead of the Rs 39-plus an avoided import is worth. Under the old rules the same setup was a money machine: full offset plus a 400-unit surplus paid at around Rs 26 put payback near 2.7 years. Oversizing punishes harder now — put this 10kW on a house using only 400 units a month and you’d export some 1,000 units for Rs 11,000 while the bill saving shrinks, dragging payback past six years, with part of the return stuck as carried-forward credit.
Three planning rules follow directly from the arithmetic:
- Size for your daytime load, not your roof. The old advice — fill the roof, the grid is your battery — is dead. Oversizing now buys you Rs 11 units.
- Shift consumption into daylight. Run the washing machine, iron, water pump and inverter AC between 10am and 4pm. Every unit you self-consume is worth three to four exported units.
- Panels remain a strong inflation hedge. A payback of under five years on hardware warrantied for 25 years still beats most alternatives available to a Pakistani household, especially with tariffs trending up. For non-solar ways to cut the bill first, see our guide to reducing your electricity bill — insulation and inverter appliances shorten your solar payback too, by shrinking the system you need.
How to apply for net metering in Pakistan in 2026 (now net billing)
The process still runs through your DISCO and looks much like the old net metering application. PPIB (which absorbed AEDB, the Alternative Energy Development Board) publishes the official net-metering reference guide for consumers; the sequence below reflects it plus the 2026 changes.
Before you apply — the requirements:
- A three-phase connection in your name. Single-phase connections don’t qualify; apply for a phase upgrade first.
- Sanctioned load ≥ system size. A 10kW system needs at least 10kW of sanctioned load. Your sanctioned load is printed on your bill — check your bill online if you don’t have a paper copy. If your load is lower, file a load-extension request before the solar application.
- An AEDB/PPIB-certified installer. The certified list is on ppib.gov.pk. An uncertified installer is an automatic rejection.
- No outstanding dues on the connection.
The steps:
- Hire the certified installer and finalize the system design (inverter must be on the approved list, with anti-islanding protection).
- Submit the application to your DISCO with: application form, CNIC copy of the connection holder, a recent bill, proof of ownership (or registered tenancy with owner’s NOC), installer’s certification, equipment datasheets and a single-line diagram. Most installers prepare this file for you — but you sign it, so read it.
- Technical feasibility survey. The DISCO inspects the site and the local transformer’s capacity headroom, then issues a feasibility report.
- Sign the interconnection agreement — five years, renewable, under the Prosumer Regulations 2026. Below 25kW there is no NEPRA licence step and no licence fee; at 25kW and above, the DISCO forwards the case to NEPRA and the Rs 1,000-per-kW fee applies.
- Meter installation and commissioning. Pay the meter charges, the DISCO swaps your meter for a bidirectional (“green”) meter, and export credits start appearing on your next bill.
Where to apply, per DISCO: every DISCO accepts applications at its sub-division/customer-services office; the larger ones run online portals.
| DISCO | Where to apply | Reported end-to-end timeline (mid-2026) |
|---|---|---|
| LESCO (Lahore) | lesco.gov.pk — net metering section (online application), or your sub-division office | ~25–45 days |
| MEPCO (Multan) | mepco.com.pk — customer services, or sub-division office | ~1–3 months |
| IESCO (Islamabad/Rawalpindi) | iesco.com.pk — net metering application, or sub-division office | ~1–3 months |
| K-Electric (Karachi) | ke.com.pk — net metering / distributed generation page | ~1–3 months |
| FESCO, GEPCO, PESCO, HESCO, SEPCO, QESCO, TESCO | Respective DISCO site or sub-division office | ~1–3.5 months, varies by circle |
Timelines are market-reported averages, not guarantees; a missing document or a congested transformer can stretch any of them.
What the green meter and connection actually cost
Costs come in three layers, and installers often quote them bundled, so ask for the split:
| Cost item | Typical range (mid-2026) | Notes |
|---|---|---|
| Bidirectional (green) meter | Rs 18,500 – Rs 40,000 | Three-phase AMI meter; charges vary by DISCO and meter model |
| DISCO processing & inspection fees | Rs 8,000 – Rs 25,000 | Application, feasibility, testing |
| Documentation & engineering | Rs 5,000 – Rs 10,000 | Drawings, file preparation — often the installer’s line item |
| Protection equipment | Rs 25,000 – Rs 45,000 | Breakers, earthing, reverse-power protection as required by feasibility |
| All-in connection package | Rs 100,000 – Rs 150,000 | July 2026 market surveys, 5–10kW systems, excluding the solar system itself |
| NEPRA licence fee | Rs 0 below 25kW | Abolished April 2026, retroactive to 9 Feb 2026; Rs 1,000/kW at 25kW+ |
If a quote in late 2026 still includes a “licence fee” for a home system, push back with the April 2026 NEPRA notification.
Common reasons applications get rejected
Most rejections are avoidable. The recurring ones:
- System size exceeds sanctioned load. The number-one issue under the 2026 rules. Fix: load extension first, or a smaller system.
- Single-phase connection. Upgrade to three-phase before applying.
- Uncertified installer. Only AEDB/PPIB-certified companies can sponsor an application.
- Transformer already saturated. Where cumulative solar on your local transformer has hit the cap (reported at 80% of its capacity), the DISCO can decline. Neighbourhoods that went solar early are hitting this first; there is no consumer-side fix except waiting for a transformer upgrade.
- Name mismatch. The bill is in a deceased relative’s or previous owner’s name. Complete the change-of-name transfer first.
- Outstanding dues or a pending detection bill on the connection.
- Non-compliant inverter — not on the approved list, or missing anti-islanding protection. Cheap imported inverters cause expensive delays.
- Incomplete file. Missing NOC, missing ownership proof, expired CNIC. Boring, and responsible for a surprising share of rejections.
How net billing shows up on your bill
Your monthly bill under net billing carries both sides of the ledger: imported units billed at your slab (with the usual taxes, duties and FPA on the imported amount), and an export credit line — exported units × the applicable NAEPP rate — deducted from the total. Credits settle monthly against the same bill; if your credit exceeds the charge, the balance carries into the next month per your agreement. Keep an eye on the export line for the applied rate: NAEPP is revised periodically, and your bill is where you’ll first see a new rate take effect. You can pull your bill anytime via our free bill-check pages for every DISCO — no login, just your reference number.
FAQs
Is net metering completely banned in Pakistan now?
No. The word gets used loosely. New applications since 9 February 2026 are processed as net billing under the NEPRA Prosumer Regulations 2026, so new consumers cannot get the one-to-one unit offset. Existing net metering agreements signed before that date remain fully valid on their original terms until they expire.
What buyback rate will I get if I apply in August 2026?
The National Average Energy Purchase Price, which press reports and industry guides place at roughly Rs 10–11 per unit as of the latest notifications. It is not fixed for life: NEPRA revises the NAEPP periodically, so the rate on your bill can move during your five-year agreement. Confirm the currently applicable rate with your DISCO before signing.
I applied before 9 February 2026 but my meter was installed later — which rules apply to me?
Applications pending as of 8 February 2026 — about 5,165 nationwide — were directed to be processed under the old net metering framework, and agreements validly signed before the cutoff are grandfathered regardless of when the meter was physically installed. If your DISCO processed a pre-cutoff application under net billing instead, put your objection in writing and escalate to the DISCO’s consumer grievance office with your application receipt.
What happens when my 7-year net metering agreement expires?
Renewal happens under the Prosumer Regulations 2026: a five-year agreement with exports paid at NAEPP and monthly settlement. There is no provision to renew on the old one-to-one terms. Agreements signed in 2019–2025 will therefore roll onto net billing between 2026 and 2032 as they mature.
Do I need a NEPRA licence for a home solar system?
Not anymore. In April 2026 NEPRA abolished the licence requirement and the Rs 1,000-per-kW fee for systems below 25kW, retroactively effective from 9 February 2026. Home systems — 3kW, 5kW, 10kW, even 20kW — need only the DISCO interconnection agreement. Systems of 25kW and above still require the licence and pay the fee.
Can I get net metering or net billing on a single-phase connection?
No. A three-phase connection is a baseline requirement, and your system size cannot exceed your sanctioned load. If you are on single-phase, apply to your DISCO for a phase upgrade and, if needed, a load extension before starting the solar application.
Is a hybrid system with batteries better than net billing in 2026?
For many households the gap has narrowed sharply. A battery lets you store your Rs 11 export units and use them in the evening instead of buying peak units at Rs 38–48 plus taxes — and peak-hour rates make stored solar even more valuable for time-of-use consumers. Batteries add Rs 300,000–500,000 upfront for a typical home, so pure net billing still wins on simple payback, but hybrid systems also ride through load-shedding. If outage protection matters to you, price both.
Will my export credit ever exceed my bill, and do I get cash?
It can, especially in mild months when generation is high and consumption low. The credit first offsets your current bill and any remainder is carried forward against future bills under your agreement; net billing settles monthly, so credits move faster than the old quarterly cycle. Cash settlement of accumulated credit is governed by your interconnection agreement’s terms — ask your DISCO how it handles year-end balances before you count on a payout.
Check your solar bill the easy way
Whether you’re grandfathered on net metering or starting fresh on net billing, the numbers only become real on your monthly bill — the applied export rate, the credited units, the carried-forward balance. You can view and download your bill for free on our service pages for every DISCO in Pakistan — LESCO, MEPCO, IESCO, K-Electric and the rest — with just your reference number. Pull up this month’s bill, find the export credit line, and see exactly what your panels earned you.