The National Electric Power Regulatory Authority (NEPRA) officially decided to retain the current net metering policy for existing solar consumers. This decision provides critical clarity following recent reforms that triggered widespread debate.
Yesterday, the regulator issued a formal notification to amend the solar policy. Crucially, this amendment safeguards the interests of current net metering users. Additionally, NEPRA invited stakeholders to submit feedback and suggestions on the proposed changes within 30 days.
According to the notification, the amendment takes effect retrospectively from February 9, 2026.
Existing Consumers Remain Protected
NEPRA clarified that new regulations will not affect existing solar net metering consumers. Their current agreements remain valid until the end of their contractual terms.
Specifically, the draft amendment states that all approvals, licenses, and agreements granted under previous regulations stay in effect. Consequently, distributed generators with valid contracts will continue billing under the earlier rates and mechanisms. This protection lasts until their existing contracts expire.
New Framework by NEPRA for Future Connections
While existing users breathe a sigh of relief, the framework changes significantly for new connections. The federal government faced criticism after introducing these reforms on February 9. These changes fundamentally alter how utilities compensate for surplus solar electricity.
Under the proposed framework, power utilities will purchase surplus electricity from prosumers at the national average energy purchase price. This applies to households, businesses, and industries generating up to one megawatt. Conversely, utilities will bill prosumers for electricity supplied to them at the applicable consumer tariff.
This effectively ends the previous one-to-one offset model. Previously, solar users could offset exported units against imported units to neutralise their bills.
Shorter Contracts & Billing Adjustments
The new regulations also introduce a shorter contract period. The standard agreement term reduces from seven years to five years, renewable by mutual consent.
While existing prosumers continue under current contracts, all future renewals and new connections fall under this five-year net billing framework. This shift significantly alters long-term return calculations for new solar investments.
Regarding billing, if a prosumer’s electricity supply exceeds their grid consumption, the utility will adjust the excess in the subsequent bill. Alternatively, they will pay the prosumer every three months. The draft regulations currently await final approval pending public consultation.
