Net Metering Pakistan 2026: Rs 11 Net Billing Rate (NEPRA Rules)

Net metering in Pakistan changed fundamentally on February 9, 2026 when NEPRA notified the Prosumer Regulations 2026 (SRO 251(I)/2026). The 2017 net metering framework was replaced with a new net billing system for all new solar customers. The familiar 1:1 unit swap is gone. The export buyback rate dropped from roughly Rs 27/unit to Rs 11/unit. Contract length shortened from 7 to 5 years. NEPRA introduced a new Rs 1,000/kW non-refundable concurrence fee. This guide explains exactly what changed on Feb 9, who is protected under the old rules, what your bill looks like under net billing across LESCO, K-Electric, IESCO, MEPCO, GEPCO, FESCO, HESCO, SEPCO, PESCO, QESCO and TESCO, how to apply, and whether rooftop solar still makes financial sense in Pakistan in 2026.

What changed on February 9, 2026: NEPRA Prosumer Regulations

NEPRA notified the Prosumer Regulations 2026 (SRO 251(I)/2026) on February 9, 2026, effective immediately. The previous NEPRA Distributed Generation and Net Metering Regulations 2015 were repealed for new applicants. Here is what changed at a glance:

NEPRA's stated reasoning: under the 1:1 net metering rule, solar customers were effectively avoiding the fixed transmission, distribution and capacity payment costs baked into the retail tariff, while still using the grid as a free battery. Grid-only customers were cross-subsidising them. The new rate shifts that burden back. Our Net Metering Calculator computes your bill under both old (net metering) and new (net billing) rules so you can see the exact difference.

Net Metering vs Net Billing: the official terminology shift

This is the single biggest source of confusion in 2026. Two arrangements, similar names, completely different economics.

Net Metering (the old 2015 to Feb 2026 system): - Your solar exports to the grid. Exported units offset imported units at the same retail tariff. - 100 exported units = 100 units credited at Rs 35-48/unit each. - Effective rate on exports: Rs 35-48/unit.

Net Billing (the new system, Feb 9, 2026 onwards): - Your solar exports to the grid. The DISCO buys those units at NAPPP. - 100 exported units = 100 × Rs 11 = Rs 1,100 credit on your bill. - Your imports are billed at full retail slab rates as before. - Effective rate on exports: Rs 11/unit.

The bills work very differently. Under net metering, exports and imports cancelled each other out unit-for-unit before applying the rate. Under net billing, imports are billed at retail rate FIRST, then the export credit at Rs 11/unit is subtracted at the end. Self-consumption is now far more valuable than exporting to the grid.

Are existing solar customers protected? PM Shehbaz amendment

Yes, but only if your net metering agreement was valid on or before February 9, 2026. After significant public concern and the direct intervention of Prime Minister Shehbaz Sharif, NEPRA issued a draft amendment on February 16, 2026 clarifying transitional protection:

• Existing prosumers (agreements valid as of Feb 9, 2026): continue under the old 1:1 net metering terms until your current 7-year agreement expires.
• New prosumers (applications submitted from Feb 9, 2026 onwards): fully governed by net billing. Rs 11/unit buyback, 5-year contract, Rs 1,000/kW concurrence fee, all new charges apply.
• Modifications to existing systems: any change that increases your maximum electrical output causes loss of net metering tariff advantages. Your agreement is automatically shifted to net billing terms even mid-contract.

So if you installed solar in 2023 and signed a 7-year agreement, you keep the old rate until 2030. But if you add more panels in 2027 to expand the system, you lose the protection and shift to net billing immediately.

After the original 7-year agreement expires, DISCOs are authorised to either renew on net billing terms or terminate the arrangement. This is the practical end of classic net metering as Pakistan knew it.

New buyback rate: Rs 11/unit (NAPPP)

The buyback rate under net billing is pegged to the National Average Power Purchase Price (NAPPP), which is the weighted-average wholesale cost at which DISCOs buy electricity from generators. NEPRA reviews and notifies NAPPP periodically.

Recent reference points: - Pre-Feb 2026 buyback rate: roughly Rs 27/unit (some sources cite Rs 25.32 at decision time) - Feb 2026 net billing buyback rate: Rs 11/unit (notified in SRO 251(I)/2026) - Headline reduction: approximately Rs 17/unit, or 60-65% lower than before

Note: some news sources cited Rs 8.13/unit instead of Rs 11/unit. The discrepancy reflects two different rate references, the headline policy buyback rate (Rs 11) versus the strict NAPPP wholesale average calculated at a different snapshot (Rs 8.13). For practical bill calculation under SRO 251(I)/2026, the Rs 11/unit figure is the operative number.

How a Pakistani net billing bill is calculated (worked example)

Consider a Lahore household on LESCO, unprotected slab, with a 5 kW solar system installed in 2026 (so under the new net billing regime). Monthly consumption: 800 units total. Solar production: 600 units. Of that, 350 units are self-consumed (used the moment they are produced), and 250 units are exported to the grid because no one was home to use them.

The DISCO's bi-directional (green) meter records two numbers:

• Imported units: 450 (800 total minus 350 self-consumed from solar)
• Exported units: 250 (sent back to grid)

Under net billing, the bill is:

1. Import bill on 450 units (unprotected domestic, Q2 2026 illustrative slabs):

Add NJ Surcharge (450 × Rs 0.10 = Rs 45), Electricity Duty (1.5% of variable charges ≈ Rs 222), TV Fee (Rs 35), GST 18% on subtotal (≈ Rs 2,720). Approximate import bill total: Rs 17,800.

2. Export credit at Rs 11/unit (NAPPP):

250 units × Rs 11/unit = Rs 2,750 credit

3. Net payable:

Rs 17,800 minus Rs 2,750 = Rs 15,050

For reference, the same household with NO solar would have used the full 800 units, and the bill would have been roughly Rs 38,000 (much steeper because higher slabs at Rs 43-48/unit kick in). So the solar customer still saves ~Rs 22,950/month vs no solar, but only Rs 2,750/month of that comes from the net billing export credit. The remaining Rs 20,200 saving comes from not having to buy those 600 production units from the grid in the first place.

This is the key insight under net billing: self-consumption is now far more valuable than export. Anything you can shift from grid-time to solar-time (running the dishwasher / washing machine at noon instead of evening, charging an EV during the day, running pool pumps and water motors midday) directly saves you Rs 35-48/unit at retail rate instead of earning you Rs 11/unit on export.

DISCO-by-DISCO net billing breakdown

The buyback rate is the same nationally (Rs 11/unit NAPPP under SRO 251(I)/2026), set by NEPRA. What differs by DISCO is:

• Import-side tariff slab structure. Each DISCO has slightly different per-unit slab rates per its annual tariff determination, usually within ±1 rupee of each other for the same slab.
• Time-of-Use (ToU) eligibility. K-Electric, LESCO and IESCO have ToU peak / off-peak rates available for connections above a certain load (typically 5 kW+). Net billing on a ToU meter splits import / export readings into peak and off-peak buckets. Most solar export happens off-peak (afternoons before 5 PM), where the buyback rate applies at the standard NAPPP.
• Application processing speed. LESCO, IESCO and K-Electric typically clear net billing applications in 4-6 weeks; MEPCO, FESCO, GEPCO 6-10 weeks; HESCO, SEPCO, PESCO, QESCO, TESCO can run 8-12+ weeks depending on local backlog.
• Transformer capacity rejection. Under SRO 251(I)/2026, if your local DISCO transformer is at 80% of its generation-supporting capacity, your application is rejected until the transformer is upgraded. This is hitting dense urban areas where many homes have already installed solar.
• Bi-directional meter availability. Usually procured by the DISCO and recovered as a one-time fee on your bill (Rs 25,000-40,000), sometimes included in the solar vendor's installation quote.

Our Net Metering Calculator lets you pick your specific DISCO to get the right tariff applied to imports.

How to apply for net billing in Pakistan: step-by-step (Feb 2026 onwards)

Step 1, Install your solar system. Net billing applies to systems up to 1 MW. Capacity must be limited to your consumer sanctioned load (so a 5 kW connection cannot install a 10 kW solar system). Most residential applications are 3-15 kW.

Step 2, Pay the Rs 1,000/kW concurrence fee. This is non-refundable, paid to NEPRA at application time. A 5 kW system: Rs 5,000. A 10 kW system: Rs 10,000. A 50 kW commercial system: Rs 50,000.

Step 3, Use an AEDB-licensed solar vendor. The Alternative Energy Development Board maintains a public list of licensed net metering / net billing installers. Using an unlicensed installer disqualifies you even if the system is fine. DISCOs will refuse to install the bi-directional meter without an AEDB-licensed vendor's signature.

Step 4, Vendor submits the application to your DISCO with: - System single-line diagram - Inverter datasheet and Pakistan-approved listing (Inverex, Solis, Knox, MaxPower, Tesla Solar) - Electrical safety certificate - Load flow study (for systems 250 kW or larger only) - Site address, CNIC copy of the consumer name on the bill - Application form (DISCO-specific) - Proof of Rs 1,000/kW concurrence fee payment

Step 5, DISCO transformer capacity check. New rule under net billing: if your local DISCO transformer is already at 80% generation-supporting capacity, your application is rejected until capacity is upgraded. This is a major new constraint, especially in dense urban areas (Lahore DHA, Karachi DHA, Gulberg, F-7 / F-8 Islamabad) where solar penetration is already high.

Step 6, DISCO inspection. A DISCO engineer visits to verify the installation matches the application. Common rejection reasons: panel string voltage mismatch, missing earth grounding, AC-side overcurrent protection inadequate, anti-islanding test fails.

Step 7, Bi-directional meter installation. Once approved, the DISCO replaces your existing meter with a green bi-directional meter. The meter is sealed. Do not let anyone tamper with it.

Step 8, Net billing agreement signing. Five-year initial term under SRO 251(I)/2026 (down from 7 years under the old net metering regime), subject to renewal at DISCO discretion. The agreement includes clauses about the tariff being subject to NEPRA revisions.

Step 9, Bill watching. First bill after net billing install should show separate Imported and Exported readings, energy charges on imports only, and the export credit at Rs 11/unit. If something looks wrong, take photos and dispute within 30 days.

Total elapsed time: typically 4-8 weeks in 2026, longer in remote DISCOs and where the 80% transformer capacity issue applies.

Is solar still worth it in Pakistan after net billing?

Yes for most homes, but the math is tighter than 2018 to early 2026. Approximate payback periods on a Rs 18,000-30,000 monthly bill household:

Three reasons it still makes sense in 2026:

1. Tariff inflation. Pakistani electricity rates have risen ~10-15% per year on average since 2020. Your savings escalate every year while the system runs at near-zero ongoing cost.
2. Self-consumption value. Even at Rs 11/unit export under net billing, the self-consumed portion (units your solar generates while you are using them) saves you Rs 35-48/unit displaced retail rate. Optimise for self-consumption: run heavy appliances during solar hours.
3. Load-shedding hedge. A hybrid system with a battery keeps you running when the grid blacks out. The anti-islanding rule means a pure grid-tied system shuts off during load-shedding for grid worker safety. For homes and businesses in Karachi or smaller cities with frequent load-shedding, the backup itself is worth the extended payback.

Where it makes less sense after net billing: very low-consumption homes (below ~400 units/month) where the unprotected slab top rates do not kick in much. The arithmetic still works but the savings are smaller and payback approaches 8-10 years.

Use our Solar System Size Calculator to size your system to your specific bill and get a realistic 2026-policy payback estimate, or model both net metering (if you qualify as a pre-Feb 2026 prosumer) and net billing scenarios side by side in our Net Metering Calculator.