Islamabad, December 17, 2025: After months of delays, the government has finally taken decisive action on net-metering regulations, unveiling a draft that could significantly reshape the solar energy landscape in Pakistan. The proposed regulations, submitted for approval to the National Electric Power Regulatory Authority (NEPRA), mark a welcome course correction and are expected to generate debate across parliament, industry, and public opinion.
The draft NEPRA (Prosumer) Regulations, 2025 proposes several key amendments:
Reduced Agreement Term: The agreement period for solar prosumers has been shortened from seven years to five years. Regulators cited growing concerns over distribution network bottlenecks caused by excessive reverse power flows, particularly in high-solar areas, which have led to transformer burnouts.
Capping Generation Capacity: The allowed capacity for prosumers’ generation facilities has been reduced from 1.5 times the sanctioned load to the sanctioned load itself. This measure aims to address technical issues such as reduced power factors and voltage fluctuations during peak generation hours. While the regulation does not affect the existing 6 GW of net-metered capacity, it is expected to reduce future network strain.
Changes in Billing Mechanism: The most notable shift is the proposed move from net metering to net billing, along with a substantial reduction in the solar buyback rate from the National Average Power Purchase Price (NAPPP) to the National Average Energy Purchase Price (NAEPP). Under the net billing mechanism, units imported from the grid will be billed separately from solar exports, creating a more equitable pricing system and easing financial pressure on distribution companies.
Industry analysts say that while these changes will increase payback periods for new solar installations, they will also encourage the adoption of battery storage solutions and higher self-consumption. The regulations apply only to new connections, leaving the existing 6 GW of net-metered capacity unaffected.
The government’s move comes after repeated delays and resistance to reforms, signaling a stronger focus on sustainable solar integration without compromising grid stability. While the changes are expected to draw criticism, experts largely consider them a necessary step toward rationalizing Pakistan’s net-metering framework.
The draft regulations are now open for consultation and await final approval from NEPRA. Stakeholders and consumers are watching closely to see how the changes will shape the next phase of solar adoption in the country.
