Pakistan’s solar industry is facing one of its biggest regulatory changes in 2026. The National Electric Power Regulatory Authority (NEPRA) has revised the rooftop solar and net metering framework to address rising grid losses and rapid growth in distributed solar generation. The new policy introduces net billing, revised compensation rates, and stricter regulatory controls.
This change directly affects homeowners, businesses, and future solar investors across Pakistan.
From Net Metering to Net Billing
Under the old net metering system, solar users could export surplus electricity to the grid and later consume the same number of units without paying for them. This 1:1 adjustment made rooftop solar extremely attractive.
The 2026 policy replaces this with net billing:
- Imported electricity is billed at the full retail tariff
- Exported solar electricity is paid at a fixed per-unit rate
- Units are no longer adjusted one-to-one
This means solar users now receive monetary credits instead of energy credits.
Revised Solar Buyback Rate in 2026
One of the most impactful changes is the reduction in export compensation.
- Earlier buyback rates were close to retail electricity prices
- Under the new system, exported solar energy is valued near the national average energy purchase price
- This rate is significantly lower than what solar users previously received
As a result, exporting excess electricity to the grid is less profitable than before.
Contract Duration and Licensing Changes
NEPRA has also updated contractual and compliance rules:
- Contract duration reduced from 7 years to 5 years
- Licensing requirement introduced for solar systems up to 25 kW
- Standardized approvals through DISCOs and NEPRA oversight
These steps aim to bring better regulation and data control to the growing rooftop solar market.
Impact on Existing Solar Net Metering Users
For current solar consumers:
- Existing agreements are expected to continue until contract expiry
- New billing rules may apply after renewal or contract completion
- DISCO-level implementation may vary initially
NEPRA is expected to issue further clarifications to ensure a smooth transition for existing prosumers.
Why NEPRA Changed the Solar Policy
The policy shift is driven by multiple factors:
- Rapid increase in rooftop solar installations
- Reduced daytime grid demand impacting DISCO revenues
- Cross-subsidy burden shifting to non-solar consumers
- Grid stability and load management challenges
Net billing is intended to balance solar growth with power sector sustainability.
What This Means for New Solar Installations in 2026
For new solar buyers:
- Self-consumption becomes more important than exporting power
- Battery storage gains higher value
- System sizing should focus on daytime usage
- Return on investment timelines may increase
Solar remains beneficial, but planning is now more critical than ever.
Net Metering vs Net Billing – Quick Comparison
| Feature | Old System | New Policy 2026 |
|---|---|---|
| Billing Method | Net Metering | Net Billing |
| Unit Adjustment | 1:1 | Monetary credit |
| Export Rate | High | Lower |
| Contract Term | 7 years | 5 years |
| Licensing | Minimal | Mandatory |
Final Thoughts
The NEPRA Solar Policy 2026 marks a turning point for Pakistan’s renewable energy sector. While the incentives for exporting electricity have been reduced, rooftop solar remains a strong solution against rising power tariffs.
Success under the new framework depends on smart system design, efficient energy usage, and informed decision-making.
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