In February 2026, NEPRA scrapped net metering and replaced it with
net billing. If you are reading older advice that says your meter runs backwards
and your bill falls to zero, that advice is out of date. Here is what actually changed, what it
means for your bill, and whether solar still pays. Short answer: it does — but you have to
design the system differently.

What changed

The old system, in place since 2015, was net metering. One unit exported cancelled out
one unit imported. Export 300 units, use 300 units, pay nothing. It was simple, generous, and it
made oversizing your system a sensible thing to do.

The NEPRA (Prosumer) Regulations 2026, notified on 9 February 2026 under S.R.O. 251(I)/2026,
repealed that framework. Under net billing, the two flows are priced separately. Your
distribution company buys your surplus at the National Average Energy Purchase Price, and sells you
electricity at the normal consumer tariff. Those are very different numbers.

	Net metering (until Feb 2026)	Net billing (now)
Units exported	Credited 1:1 against imports	Bought at ~Rs 11 per unit
Units imported	Offset by exports	Charged at your normal tariff (~Rs 40–50)
A zero bill?	Common	Very unlikely
Oversizing your system	Made sense	Wastes money
System size limit	Up to 1.5× sanctioned load	Capped at your sanctioned load
Agreement length	7 years	5 years
Batteries	A luxury	Often the better investment
Typical payback (on-grid)	Around 2–3 years	Around 3–5 years

Export rates are set by NEPRA and can be revised during the life of an
agreement. Import tariffs vary by consumption slab. Treat the figures above as the shape of the
problem, not a quotation.

What this does to your bill

Take a simple month. You export 100 surplus units during the day and pull 100 units back from
the grid at night.

• Under net metering: the two cancelled. Your bill for those units was zero.
• Under net billing: you earn about Rs 1,100 for the units you exported, and
  you are charged roughly Rs 4,000–5,000 for the units you bought. You pay the difference.

Three limits the regulations put on your system

Your system cannot exceed your sanctioned load. The regulations state this
plainly, and it replaces the old allowance of up to 1.5 times sanctioned load. Your sanctioned load
is printed near the top of your electricity bill, so check it before you settle on a size. Our
cost by size guide covers what each size
suits.

You need a three-phase connection. The regulations define an eligible applicant
as a three-phase 400V or 11kV consumer. Single-phase households generally need to upgrade first,
which adds both cost and time.

The overall ceiling is 1 megawatt. That covers solar, wind and biogas, and
applies to domestic, commercial, industrial and agricultural consumers alike. Systems of 250kW and
above additionally require a load flow study.

Who approves your application: the 25kW line

This part changed twice during 2026, so much of the advice online is now wrong. Today, systems
up to 25kW are approved by your DISCO directly — no separate NEPRA licence,
and no licence fee.

Systems above 25kW still need NEPRA approval, plus a one-time fee of Rs 1,000
per kilowatt. So most households deal only with their DISCO, while larger commercial sites deal
with both. Our net billing application
guide walks through the process step by step, and our
province guide explains which DISCO
handles your area.

I already have net metering. Am I affected?

Not immediately. NEPRA has confirmed that approvals, licences and agreements issued under the
old regulations remain valid, and that existing prosumers continue to be billed under their
original terms until their contract expires. When it does expire, you move to net billing.

There is one important catch. If you materially change your system in a way that
increases its maximum output — adding panels, upsizing the inverter — you can
lose the tariff protection attached to your old agreement. Before you expand an existing
net-metered system, ask your DISCO in writing what it will do to your terms. It may be cheaper to
leave the system alone and add a battery instead.

Does solar still pay?

Yes. The sun still costs nothing, and grid electricity is expensive and getting more so. What
changed is not whether solar pays, but how it pays. Under net metering you profited by
producing. Under net billing you profit by consuming what you produce.

The old strategy — fit the biggest array your roof allows, push the surplus out, offset
the bill — no longer works. Every unit you push out at Rs 11 is a unit you could have used at
Rs 45. An oversized system now sells its best hours at a discount.

A well-sized system still pays back in roughly three to five years for a home, and faster for a
daytime-heavy business. Our payback and ROI
guide shows how to work out your own figure, with worked examples.

How to design a system under net billing

• Size to your daytime use, not your monthly bill. The right question is not
  “how many units do I use?” but “how many units do I use while the sun is up?”
• Move heavy loads into daylight. Air conditioning, water pumps, geysers,
  washing, ironing. Every load you shift from evening to afternoon converts an Rs 11 unit into
  an Rs 45 saving.
• Take batteries seriously. Under net metering the grid was a free battery.
  It is not any more. Storing a unit and using it at night is now worth about four times
  exporting it. That changes the arithmetic on storage completely.
• Consider hybrid over straight on-grid. A hybrid system lets you
  self-consume, store, and still draw from the grid when you need to. See our guide to
  on-grid vs hybrid vs off-grid.
• Be sceptical of old payback maths. If an installer quotes you a two-year
  payback in 2026, they are either using pre-February numbers or hoping you are.
• Budget for the meter and the paperwork. The bi-directional meter and DISCO
  charges sit outside most system quotes, and vary by utility.

What to ask your installer

• Have you sized this for self-consumption or for export? The honest answer
  tells you whether they have adjusted to the new rules.
• What payback period are you quoting, and at what export rate? Make them
  show the assumption.
• Is my proposed system within my sanctioned load? It has to be, under the
  2026 regulations.
• Do you handle the net billing application with the DISCO? The paperwork is
  slow. Some firms do it for you; others hand you a folder.
• Can I see your current AEDB certificate? Certification is required for
  grid-tied approvals in many areas. See our guide to
  choosing a solar installer.
• What is your workmanship warranty, in writing? Manufacturer warranties are
  the same whoever installs your system. The installer’s own warranty is not. See our guide to
  panel, inverter and battery
  warranties.

Common questions

Is net metering completely gone?

For new applicants, yes. The 2015 net metering regulations were repealed and replaced by the NEPRA (Prosumer) Regulations 2026. Existing agreements continue on their original terms until they expire.

What rate will I be paid for exported units?

The National Average Energy Purchase Price, which has been widely reported at around Rs 11 per unit. NEPRA can revise this rate during the life of an agreement, so confirm the current figure with your DISCO before you sign anything.

What is the difference between net metering and net billing?

Net metering credited one exported unit against one imported unit. Net billing prices the two separately, buying your exports at around Rs 11 while charging your imports at your normal tariff of roughly Rs 40 to 50.

Should I still install solar?

For most households with meaningful daytime consumption, yes. The payback is longer than it was, but grid electricity remains expensive and the panels last decades. The systems that no longer make sense are the oversized, export-heavy ones designed under the old rules.

Do I need a battery now?

Not necessarily, but the case is far stronger than it was. If your consumption is mostly in the evening, a battery converts Rs 11 exports into Rs 45 savings. If you are home during the day and can shift your loads, you may not need one.

Can I install a system bigger than my sanctioned load?

No. The 2026 regulations cap your system at your sanctioned load, replacing the previous allowance of up to 1.5 times that figure. Your sanctioned load is printed near the top of your electricity bill.

Do I need a three-phase connection for net billing?

Yes. The regulations define an eligible applicant as a three-phase 400V or 11kV consumer, so single-phase households generally need to upgrade their connection first.

Do I need approval from NEPRA, or just my DISCO?

For systems up to 25kW, your DISCO approves directly, with no NEPRA licence and no licence fee. Above 25kW you need NEPRA approval as well, plus a one-time fee of Rs 1,000 per kilowatt.

How long is a net billing agreement?

Five years, down from seven under the old net metering framework. Agreements can be extended by mutual consent when they expire.

Can I expand my existing net-metered system?

Be careful. Increasing your system’s maximum output can forfeit the tariff protection on your existing agreement. Ask your DISCO in writing before you add capacity.

This guide describes the NEPRA (Prosumer) Regulations 2026 as we
understand them at the time of writing. Rates, contract terms and DISCO procedures change, and
NEPRA reserves the right to revise the export rate during an agreement. Always confirm the current
position with your distribution company before signing. SolarPrices.pk is a directory, not an
installer, and this is general information rather than financial advice.