Pakistan Approves New Solar Billing System, Ends Rs25.98 Net Metering Rate

Pakistan’s solar consumers are set to face a major policy shift as the government moves to overhaul the existing net metering framework and roll out a new billing system, according to sources familiar with the decision.

The updated framework is titled the NEPRA Solar Consumer Regulations 2025. After months of consultations, the Ministry of Energy has formally approved the revised policy. The discussions involved power distribution companies, regulators, and other key stakeholders.

Under the new rules, the government will replace the current net metering system with a net billing model. This change alters how excess electricity from rooftop solar systems is valued and credited. In addition, the standard duration of solar power agreements has been reduced from seven years to five years.

The revised mechanism also changes how solar consumers are compensated. Instead of receiving credits through an additional surcharge under net metering, consumers will now be paid a fixed per-unit exchange rate. Sources say the new solar net billing rate is expected to be around Rs11 per unit.

This marks a sharp reduction from the previous net metering rate of Rs25.98 per unit. As a result, returns for solar users selling excess power to the grid will decline under the new structure.

The policy introduces another key regulatory change. Going forward, consumers with a connected load of less than 25 kilowatts will need to obtain a license from NEPRA. Earlier, residential, industrial, and commercial users remained exempt from licensing for loads up to 25 kilowatts.

Officials say the revised rules aim to standardize solar integration across the power sector. At the same time, regulators want to better align tariffs with broader grid costs.

Power Division officials stressed that solar tariff determination remains the exclusive mandate of NEPRA. They added that the new regulations reflect regulatory oversight rather than political intervention.

With the NEPRA Solar Consumer Regulations 2025 now approved, the revised billing model is expected to reshape rooftop solar economics across the country. The changes will likely spark debate among consumers, installers, and energy analysts in the coming months.