Solar Net Metering Pakistan: NEPRA Cuts Buyback Rate to Rs. 11

Islamabad: Pakistan’s power regulator NEPRA has officially reduced the solar electricity buyback rate to Rs. 11 per unit under the new NEPRA Solar Consumer Regulations 2025. The regulations were recently approved by the Ministry of Energy and apply to all new solar net metering applicants.

The decision marks a major shift in Pakistan’s solar policy and will directly impact savings for households and businesses planning to install solar systems.

Unit-for-Unit System Replaced with Net Billing

Under the new rules, the earlier unit-for-unit net metering system has been completely removed. It has been replaced with a strict net billing model.

Consumers will now sell excess solar electricity to the grid at Rs. 11 per unit. However, electricity taken from the grid will still be billed at the full retail rate, which is currently Rs. 60 per unit or more.

This change significantly increases monthly electricity bills for solar users who export excess power.

New Buyback Rate Hits Solar Savings

Previously, solar consumers were paid nearly Rs. 26 per unit for surplus electricity. The sharp reduction to Rs. 11 will increase the payback period of solar systems.

Energy experts say this move will slow down residential solar adoption, especially for middle-income households.

Shorter Contract Periods Introduced

NEPRA has also reduced the net metering contract duration.

New agreements will now be valid for five years, instead of the earlier seven-year period. Once the contract expires, consumers will need to reapply under the rules applicable at that time.

Solar System Size Now Linked to Sanctioned Load

Another major change limits the size of solar installations.

Consumers can no longer install solar systems larger than their sanctioned load. For example, a consumer with a 10kW approved load can only install a 10kW solar system.

This rule removes flexibility that earlier allowed larger installations for future needs.

Licensing Made Mandatory for All Solar Users

NEPRA has introduced mandatory licensing for all solar systems, including small systems below 25kW. Earlier, residential users were exempt from this requirement.

Power distribution companies such as LESCO and K-Electric are now installing smart meters to monitor real-time electricity flow.

These meters will ensure consumers do not export more electricity than allowed and help maintain grid stability.

Existing Consumers Temporarily Protected

Consumers with active seven-year net metering contracts will remain unaffected for now. The new solar net metering Pakistan regulations apply only to:

• New applicants

• Consumers whose existing contracts have expired

Authorities have advised solar users to review their agreements carefully before expanding their systems.