ISLAMABAD: The Ministry of Energy has approved a major revision to Pakistan’s net metering policy, introducing a new net billing framework for solar power consumers across the country.
According to sources at the National Electric Power Regulatory Authority (Nepra), the decision was finalised after months of consultations with key stakeholders, including power distribution companies and regulatory bodies. Under the revised policy, solar consumers will be compensated at a fixed rate of Rs11 per unit for electricity supplied to the national grid.
Officials said the duration of solar power agreements has been reduced to five years. Unlike the previous net metering system—where surplus electricity was adjusted against a consumer’s own usage—the new net billing mechanism will apply a fixed per-unit rate determined by Nepra. Electricity drawn from the grid will continue to be billed at the applicable Nepra-approved tariff.
Under the earlier policy, solar consumers received a significantly higher rate of Rs25.98 per unit. The revised framework, officials said, is intended to align solar incentives with evolving market conditions and address grid sustainability and financial challenges faced by the power sector.
Sources also revealed that solar installations with a load of up to 25 kilowatts will now require a licence from Nepra. Previously, domestic, commercial and industrial consumers with systems within this capacity were exempt from licensing requirements.
The Ministry of Energy has conveyed to the federal government that continuation of the old policy was no longer viable due to mounting operational and financial pressures. However, officials maintained that tariff determination remains Nepra’s mandate and assured that the revised policy would not have a significant impact on most solar power consumers.
