Nepra has proposed Prosumer Regulations 2025 that shift solar users from net metering to net billing, reduce buyback rates and shorten contract terms for new net-metering consumers in Pakistan.
Public Hearing Called on Changes to Solar Net-Metering
The National Electric Power Regulatory Authority (Nepra) has scheduled a public hearing on 6 February to review significant proposed changes to Pakistan’s solar net-metering regime. The move comes as adoption of grid-tied rooftop solar continues to grow, with more households and businesses installing panels to cut their electricity bills and protect themselves from rising tariffs.
According to the regulator, a wide range of stakeholders have already submitted written comments on the draft rules, including government departments, power utilities, industry bodies and members of the general public. The upcoming hearing will give these groups a chance to formally present their views before Nepra finalises the Prosumer Regulations 2025.
Prosumer Regulations 2025: From Net Metering to Net Billing
Under the draft regulations, Nepra has proposed a shift away from the current net-metering model towards a net-billing system. At present, many solar customers can install systems of up to 150 percent of their sanctioned load and offset their imported units with exported units at nearly the same rate, which has made solar highly attractive in recent years.
The new proposal limits the size of fresh solar installations to a consumer’s sanctioned load, removing the 150 percent allowance for new applicants. At the same time, the contract period for new net-metering connections will be reduced from seven years to five years, with any extension subject to mutual consent between the consumer and the utility. Nepra itself will directly regulate and license systems from one kilowatt to one megawatt, tightening oversight of on-grid solar across the country.
Perhaps the most impactful change is the proposed replacement of net metering with net billing. Instead of exported units being credited at or near the full retail tariff, imported electricity would be billed at the applicable consumer tariff while exported solar power would be credited at a lower, fixed rate.
Lower Buyback Rate for Surplus Solar Units
Under the draft Prosumer Regulations 2025, prosumers would receive the national average energy purchase price for surplus electricity injected into the grid. Nepra has indicated that this rate is currently estimated at around Rs 13 per unit, which is roughly half of the Rs 26 per unit that many net-metering consumers receive today for exported units.
In simple terms, this means that new solar net-metering users would still be able to reduce their bills by using their own generated power first, but the financial benefit from exporting extra units would be much smaller. For systems sized to export a lot of surplus energy during the day, payback periods could become longer under a net-billing model compared to the existing framework.
Nepra argues that the new payment mechanism is intended to reflect the actual cost of power procurement and ensure a fairer balance between solar prosumers and other grid consumers who do not have panels. However, solar installers and consumer groups are expected to question whether the lower buyback rate will slow down new investments in rooftop solar at a time when households are still struggling with high electricity bills.
Existing Solar Users to Keep Current Terms—for Now
For existing net-metering consumers, Nepra has proposed that current contracts and benefits will continue until their original seven-year agreements expire. That means households and businesses already connected under the present rules would keep their existing export rate and contract duration for the remainder of that term.
Once those contracts end, their future terms would likely be governed by whatever rules are in place at that time. This transitional arrangement gives current solar users some certainty, but it also signals that the overall net-metering landscape is shifting and that long-term returns for future installations may look different from the generous early years of the policy.
The draft regulations also make clear that Nepra will be directly responsible for licensing and oversight of smaller prosumer systems between 1 kW and 1 MW. This could lead to more standardised processes but may also introduce additional compliance requirements for installers and customers.
What Solar Consumers Should Watch Ahead of Nepra’s Decision
For homeowners and businesses considering solar, the key questions now centre on timing and expected returns. Those who are already in the net-metering system can expect to keep their existing benefits for the duration of their contracts. Potential new applicants, however, will want to understand how a net-billing model with a lower buyback rate and shorter contract period affects their payback calculations.
Stakeholders at the public hearing are likely to debate whether the proposed Rs 13 per unit credit is appropriate, how it should be updated over time, and what impact the changes might have on Pakistan’s broader renewable energy targets. Some may argue for a phased approach or alternative incentives to keep rooftop solar attractive while still addressing concerns about cross-subsidies on the grid.
Nepra has said that the aim of the Prosumer Regulations 2025 is to update the regulatory framework as on-grid solar capacity grows and to ensure that the system remains financially sustainable. For now, the final shape of the rules will depend on feedback from the public hearing and the regulator’s own assessment of the country’s power sector needs.
