ISLAMABAD: In a move likely to alarm solar consumers, the National Electric Power Regulatory Authority (Nepra), on government directions, has proposed sweeping changes to Pakistan’s net-metering regime that would significantly reduce incentives for solar prosumers. The draft Prosumer Regulations, 2025, released for public consultation, aim to replace the existing Alternative and Renewable Energy Distributed Generation and Net Metering Regulations, 2015.
Under the proposed framework, prosumers would no longer be allowed to install solar capacity beyond their sanctioned load, effectively cutting the permissible system size by around 50 percent. Currently, consumers can install solar capacity up to 150 percent of their approved load. While existing net-metered consumers will remain protected until the end of their current seven-year contracts, all new and renewed connections would fall under the revised rules.
Another major shift is the reduction in contract duration from seven to five years, renewable only with mutual consent and without obligation. More significantly, surplus electricity exported to the grid would be purchased at the National Average Energy Purchase Price (NAEPP)—around Rs13 per unit—almost half of the current average buyback rate of about Rs26 per kWh.
Nepra argues the changes are necessary to strike a balance between consumer relief and the financial sustainability of power utilities, which it recently described as providing “sub-optimal” service. The regulator noted that rising taxes, surcharges and inefficiencies have pushed consumers toward decentralised energy solutions, with on-grid solar capacity exceeding 6,000MW and total solar installations crossing 13,000MW nationwide.
The draft regulations also introduce tighter technical and procedural requirements, including capacity caps at the transformer level, stricter timelines for application processing, and mandatory load-flow studies for installations of 250kW and above. Distribution companies would be barred from approving new connections once distributed generation reaches 80 percent of a transformer’s rated capacity.
If approved, the new regime could slow the pace of rooftop solar adoption, shifting the balance firmly in favour of struggling power utilities while redefining the economics of net-metered solar in Pakistan.
Story by Khaleeq Kiani
