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The National Electric Power Regulatory Authority (NEPRA) will hold a public hearing on February 6 to gather input from consumers, government departments, and industry stakeholders before finalising new solar energy regulations.
The power-sector regulator moving forward with plans to replace the current net metering system with net billing and gross metering frameworks, a shift likely to lower returns for future rooftop solar users.
Under net metering, consumers currently receive full credit for the electricity they supply to the grid. Net billing, however, will credit surplus solar energy at a fixed, lower rate, while electricity drawn from the grid will be billed at retail tariffs.
The draft Prosumer Regulations 2025, published in December 2025, also propose reducing the maximum allowed solar system size from 150% of sanctioned load to 100%, a move that could discourage optimal investment in rooftop systems.
Existing solar users with valid seven-year net metering agreements will continue to receive current rates for surplus energy until their contracts expire. Afterward, they too will transition to the new framework, which offers five-year contracts for new users.
Government officials and power distribution companies argue the change is needed to recover grid infrastructure costs and reduce financial pressure on conventional electricity consumers caused by rapid growth in net-metered solar.
Nepra has recommended that new solar consumers sell all electricity to distribution companies at a proposed buyback rate of Rs11.30 per unit, while purchasing electricity separately at retail tariffs of Rs55–60 per unit.
Supporters, including the Private Power and Infrastructure Board (PPIB) and GIZ, have praised the move as a progressive step toward a transparent, sustainable framework that balances renewable energy growth with grid stability.
They highlight that the regulations encourage efficient solar use, integrate smart grid solutions, and promote operational efficiency, aligning with Pakistan’s long-term energy and climate commitments.
However, the changes have faced criticism from industry stakeholders.
Siddiq Renewable Energy Ltd and the Karachi Chamber of Commerce & Industry (KCCI) warn that lower buyback rates will make rooftop solar less economically viable, extending payback periods and discouraging private investment.
Critics argue the net billing framework creates a significant gap between the cost of electricity for prosumers and the rates they receive for surplus energy, effectively penalising households contributing to clean energy.
Nepra maintains that the proposed regulations aim to provide a balanced, financially sustainable, and technically feasible framework for both small-scale producers and the broader energy sector as it moves to phase out the Net Metering Regulations 2015.
