Pakistan’s rooftop solar and small renewable energy sector is set to go through a major change as NEPRA has decided to replace the old net metering system with a new policy called “net billing.” This change will be introduced under the Prosumer Regulations 2026 and will end a system that has been in place for nearly ten years.
Under the new net billing model, people who produce their own electricity using solar, wind, or biogas systems will no longer be able to offset units one-to-one with the power they consume. Instead, any extra electricity they send to the grid will be purchased at the national average energy price.
When they need to buy electricity from the grid, they will still pay the regular consumer tariff, which is usually higher. This means prosumers will earn less for the power they export compared to what they pay when using electricity from the grid.
The new rules will apply to renewable energy systems with a capacity of up to 1 megawatt. This includes rooftop solar panels as well as small wind and biogas installations.
NEPRA has also introduced several technical, financial, and regulatory requirements that prosumers must follow. These include updated metering standards, system approvals, and compliance with grid safety and performance rules.
Supporters of the change say net billing will help reduce financial pressure on the power sector and make electricity pricing more balanced. However, critics believe it may slow down the growth of rooftop solar by reducing financial benefits for households and small businesses.
This policy shift marks a significant turning point for renewable energy users in Pakistan. Many existing and potential prosumers are now reviewing their investment plans as the new regulations reshape how clean energy is produced, sold, and valued across the country.
