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Solar net metering vs net billing in Pakistan (2026): what changed and is it still worth it

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Since 9 February 2026, new rooftop solar systems go on net billing instead of net metering. You pay the full tariff for electricity you take from the grid, while electricity you send to the grid is priced at the national average energy purchase price, which is far lower. If you already have a net metering agreement, its terms stay until it expires. Solar still pays for itself, but mainly through the power you use yourself.

Net metering vs net billing

RuleOld net metering (2015)Net billing (2026)
Exported unitsNetted off unit for unit against grid units each billing cycleBought at the national average energy purchase price; grid units billed at the full tariff
Agreement term7 years, renewed automatically5 years, renewed by mutual consent
Rate changesTariff awarded stays for the termNEPRA can revise the rate during the agreement
SurplusCredited to the next bill or paid quarterly

Regulation 14 of the new rules lets NEPRA change the buyback rate by notification at any time during your agreement.

What is the buyback rate?

The regulations do not print a number. They only say exported units are bought at the national average energy purchase price: the fuel and other variable part of generation cost, without capacity payments. In CPPA-G’s projection to NEPRA for calendar year 2026, that part averaged about Rs 8.3 per unit in the first scenario, against a total power purchase price of about Rs 26. A figure of Rs 11 per unit is widely quoted, but we could not find a NEPRA notification that sets it. Our solar calculator assumes Rs 8; ask your company for the current rate and change it.

If you already have net metering

Under S.R.O. 547(I)/2026 (2 April 2026), a valid agreement made under the old rules keeps the old rate and billing method until its term ends. Renewal after that is under the new rules. Be careful: if you change the system so that its maximum output changes, for example by adding panels, the old terms end at once.

How to apply

  1. Check you qualify: you must be a 3-phase 400 V or 11 kV consumer, and the system can be up to 1 MW but no bigger than your sanctioned load. The company will not accept an application if solar on your transformer has already reached 80% of its capacity.
  2. Installer and inverter: grid-connected inverters must meet the UL 1741 standard.
  3. Apply to your company: submit the prescribed form and documents to your distribution company (LESCO, IESCO, K-Electric and so on). It must give you the forms free within 2 working days.
  4. Company deadlines: acknowledgement and any missing documents within 5 working days, initial review within 15, the agreement within 7 working days after that, and a connection charge estimate within 7 working days of the agreement.
  5. Pay and connect: pay the estimate within 7 working days. You pay all connection costs, including the meter; if the company has no meter you may buy one yourself for it to test. The company must connect you within 15 working days of payment.
  6. Approval: your company approves systems of 25 kW or less, with no fee. For bigger systems it sends the case to NEPRA, which can grant concurrence within 7 working days, with a fee of Rs 1,000 per kW. Net billing starts after approval, and the system must start running within 6 months of it.

Sizing the system

Our calculator assumes 1 kW of panels makes about 120 units a month (roughly 5 peak sun-hours a day at 80% efficiency). On that basis 500 units a month needs about a 4.5 kW system. Under net billing a bigger system than you need does not help much, because the extra power sells cheaply. Size it to your daytime use, and remember that a sanctioned load of 5 kW or more puts you on the peak and off-peak tariff.

Worked example: payback

A home using 500 units a month installs 4.5 kW at Rs 110,000 per kW (get your own quotes), so Rs 495,000 in total. Grid power costs Rs 50 a unit and the buyback is Rs 8. Our bill calculator puts 500 units for an unprotected consumer at about Rs 51 a unit all-in, so Rs 50 is a fair figure.

CaseMonthly savingPayback
Net billing, 40% used at homeRs 12,7203.2 years
Net billing, 60% used at homeRs 16,9202.4 years
Net billing, 80% used at homeRs 21,1202 years
Old net metering (roughly every unit at full price)Rs 27,0001.5 years

So net billing stretches the payback, but it is still a few years, and the real difference is how much power you use yourself during the day. Because an unprotected consumer’s whole bill is charged at one slab rate, taking fewer units from the grid can also drop you into a cheaper slab, which saves even more.

Battery or no battery?

On these figures, every unit you store and use in the evening instead of exporting saves Rs 42 (Rs 50 minus Rs 8). A battery that moves 5 kWh of usable power a day into the evening shifts about 150 units a month, worth Rs 6,300. Victron’s datasheet rates a lithium battery at about 2,500 cycles at 80% depth of discharge, so about 12,500 units over its life. That makes such a battery worth it only if it costs well under Rs 525,000, since the inverter and battery also lose some power. Lead-acid batteries should only be discharged to 50% and last fewer cycles. Where there is load-shedding, the main value of a battery is backup; size it for your appliances in the solar battery calculator.

Common mistakes

To understand every line of your bill, read our guide on how to read your electricity bill.

Frequently asked questions

Can I still get net metering in 2026?

Not for a new system. The NEPRA (Prosumer) Regulations 2026 came into force on 9 February 2026 and repealed the 2015 net metering regulations. New connections, and old ones when their agreement is renewed, are on net billing.

Will my existing net metering agreement change?

No, not until it expires. S.R.O. 547(I)/2026 says a valid agreement under the old rules is billed with the old rate and mechanism until the end of its term. You lose that if you change the system in a way that changes its maximum output, for example by adding panels.

Do I need NEPRA’s approval for a 10 kW home system?

No. Since S.R.O. 1330(I)/2026 (6 August 2026), a system of 25 kW or less is approved by your distribution company, not NEPRA, and there is no NEPRA fee for it. Above 25 kW you need NEPRA’s concurrence and pay Rs 1,000 per kW.

How long is a net billing agreement?

Five years from commissioning, renewable for further five-year terms by mutual consent. Under the old rules it was seven years. NEPRA can also revise the buyback rate during the agreement.

What happens if I export more than I use in a month?

If the value of your exported units is more than the bill for the units you took from the grid, the difference is credited to your next bill or paid to you quarterly.

Can I get net billing on a single-phase connection?

No. The regulations only accept a 3-phase 400 V or 11 kV consumer, so a single-phase home must first be converted to three-phase.

Calculators for this guide

Sources

This guide explains the rules for general information. It is not official, legal or tax advice. Rules change, so check the official source or a qualified professional before acting. See how we check our information.