NEPRA Retains Net Metering for Existing Solar Consumers Amid Policy Changes

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The National Electric Power Regulatory Authority (NEPRA) has decided to retain the net metering policy for existing solar consumers, providing clarity and protection after recent regulatory reforms triggered debate among renewable energy stakeholders. ProPakistani reported the regulator issued a formal notification on the amendment, which took effect on February 9, 2026.

The move comes against the backdrop of broader changes in the solar policy framework, including the introduction of a net billing mechanism for new solar users, a shift that had raised concerns among solar energy advocates and industry observers.

Existing Solar Consumers Protected

Under the amended framework, NEPRA clarified that existing net metering consumers will continue to operate under the previous system until the expiry of their current contractual terms. This means approvals, licenses, agreements, and concurrences granted under earlier net metering regulations remain valid, sheltering established solar prosumers from immediate disruption.

Distributed generators, including rooftop solar owners with valid net metering agreements, will still be billed according to the older rate and mechanism until their contracts lapse. The retention of these terms offers reassurance to households, businesses, and industries that invested in solar infrastructure under the earlier policy regime.

What Changes Under the New Framework

NEPRA had previously introduced a revised solar policy that fundamentally altered how surplus solar electricity is compensated. Under the new draft of the Prosumer Regulations, 2026, power utilities will purchase excess electricity from prosumers at the national average energy purchase price, while electricity supplied back to prosumers will be billed at the applicable retail tariff.

This change effectively ends the traditional one-to-one unit offset model of net metering for new solar users, a model that allowed household and commercial solar producers to balance exported power against electricity drawn from the grid. Critics argued that the net billing approach significantly reduces financial returns on solar investments.

Stakeholder Feedback and Next Steps

NEPRA has invited public feedback and suggestions from stakeholders on the proposed amendments, giving interested parties a 30-day window to submit input. The draft of the amendments is available on the regulator’s official website.

Industry representatives and consumer groups have expressed a desire for clear policy direction that balances solar adoption incentives with grid sustainability and tariff fairness. The stakeholder consultation process is expected to shape the final regulatory framework and may influence how rooftop solar systems integrate with Pakistan’s national grid in the long term.

Balancing Solar Growth and Grid Stability

The broader context of this policy shift reflects efforts to reconcile rapid solar penetration with concerns around grid stability, revenue shortfalls for utilities, and equitable cost distribution among consumers. While net billing aims to address these issues for new installations, retaining net metering for existing users helps preserve investor confidence among early adopters of solar technology

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