Pakistan’s rooftop solar market has entered a new phase in 2026. The National Electric Power Regulatory Authority (NEPRA) has introduced major changes to how solar electricity is exported, billed, and regulated. These reforms are designed to control rising power sector losses while reshaping incentives for solar consumers.
For households, businesses, and future solar buyers, understanding this new policy is critical.
Net Metering Ends, Net Billing Begins
The biggest shift in the 2026 policy is the replacement of net metering with net billing.
Previously, solar users could export extra electricity to the grid and later import the same number of units without cost. This made solar highly profitable.
Under net billing:
- Electricity taken from the grid is charged at normal retail rates
- Electricity sent to the grid is paid separately at a fixed price
- Energy units are no longer balanced against each other
This system changes solar from an energy-swap model to a cash-based settlement model.
Lower Compensation for Exported Solar Power
Another key change is the revised solar export rate.
- Earlier policies allowed solar users to earn close to retail electricity prices
- The 2026 framework values exported electricity at a much lower national average rate
- This significantly reduces income from surplus solar generation
As a result, selling electricity back to the grid is no longer the main financial benefit of solar.
New Contract Rules and Licensing Requirements
NEPRA has also tightened regulatory controls:
- Solar export agreements are now limited to five years instead of seven
- Small and medium solar systems must comply with licensing and approval procedures
- Greater oversight through DISCOs has been introduced
These steps aim to bring uniformity and financial discipline to distributed power generation.
What Happens to Existing Net Metering Consumers?
For current solar users:
- Existing net metering contracts are expected to remain valid until they expire
- New rules will apply at the time of renewal or new connection
- Implementation timelines may vary by distribution company
Official notifications are expected to clarify transitional arrangements.
Why NEPRA Changed the Policy
NEPRA’s decision is based on long-term power sector concerns:
- Rapid growth of rooftop solar reduced grid electricity sales
- Financial pressure increased on distribution companies
- Cost burden shifted to non-solar consumers
- Grid balancing and operational challenges increased
Net billing is intended to stabilize the system while allowing solar growth to continue.
How the 2026 Policy Affects New Solar Buyers
For anyone planning solar installation in 2026:
- Self-consumption is now more valuable than exporting electricity
- Battery storage improves financial returns
- Oversized systems may no longer be cost-effective
- Careful system design is essential
Solar remains beneficial, but returns depend on smart usage rather than grid exports.
Old vs New Solar Policy – Quick Overview
| Aspect | Previous Policy | New Policy 2026 |
|---|---|---|
| Billing System | Net Metering | Net Billing |
| Export Adjustment | Unit-based | Price-based |
| Buyback Value | High | Reduced |
| Contract Length | 7 Years | 5 Years |
| Regulation | Light | Stricter |
Final Analysis
The NEPRA Solar Policy 2026 signals a shift in how rooftop solar fits into Pakistan’s power system. While exporting electricity is less rewarding, solar energy remains a powerful tool against rising electricity prices.
The future of solar in Pakistan now depends on efficient consumption, smart storage, and informed planning — not just feeding power into the grid.
Solar is still worth it, but strategy matters more than ever.
NEPRA’s New Solar & Net Metering Policy 2026 – What Every Solar User Must Know
Pakistan’s rooftop solar market has entered a new phase in 2026. The National Electric Power Regulatory Authority (NEPRA) has introduced major changes to how solar electricity is exported, billed, and regulated. These reforms are designed to control rising power sector losses while reshaping incentives for solar consumers.
For households, businesses, and future solar buyers, understanding this new policy is critical.
Net Metering Ends, Net Billing Begins
The biggest shift in the 2026 policy is the replacement of net metering with net billing.
Previously, solar users could export extra electricity to the grid and later import the same number of units without cost. This made solar highly profitable.
Under net billing:
- Electricity taken from the grid is charged at normal retail rates
- Electricity sent to the grid is paid separately at a fixed price
- Energy units are no longer balanced against each other
This system changes solar from an energy-swap model to a cash-based settlement model.
Lower Compensation for Exported Solar Power
Another key change is the revised solar export rate.
- Earlier policies allowed solar users to earn close to retail electricity prices
- The 2026 framework values exported electricity at a much lower national average rate
- This significantly reduces income from surplus solar generation
As a result, selling electricity back to the grid is no longer the main financial benefit of solar.
New Contract Rules and Licensing Requirements
NEPRA has also tightened regulatory controls:
- Solar export agreements are now limited to five years instead of seven
- Small and medium solar systems must comply with licensing and approval procedures
- Greater oversight through DISCOs has been introduced
These steps aim to bring uniformity and financial discipline to distributed power generation.
What Happens to Existing Net Metering Consumers?
For current solar users:
- Existing net metering contracts are expected to remain valid until they expire
- New rules will apply at the time of renewal or new connection
- Implementation timelines may vary by distribution company
Official notifications are expected to clarify transitional arrangements.
Why NEPRA Changed the Policy
NEPRA’s decision is based on long-term power sector concerns:
- Rapid growth of rooftop solar reduced grid electricity sales
- Financial pressure increased on distribution companies
- Cost burden shifted to non-solar consumers
- Grid balancing and operational challenges increased
Net billing is intended to stabilize the system while allowing solar growth to continue.
How the 2026 Policy Affects New Solar Buyers
For anyone planning solar installation in 2026:
- Self-consumption is now more valuable than exporting electricity
- Battery storage improves financial returns
- Oversized systems may no longer be cost-effective
- Careful system design is essential
Solar remains beneficial, but returns depend on smart usage rather than grid exports.
Old vs New Solar Policy – Quick Overview
| Aspect | Previous Policy | New Policy 2026 |
|---|---|---|
| Billing System | Net Metering | Net Billing |
| Export Adjustment | Unit-based | Price-based |
| Buyback Value | High | Reduced |
| Contract Length | 7 Years | 5 Years |
| Regulation | Light | Stricter |
Final Analysis
The NEPRA Solar Policy 2026 signals a shift in how rooftop solar fits into Pakistan’s power system. While exporting electricity is less rewarding, solar energy remains a powerful tool against rising electricity prices.
The future of solar in Pakistan now depends on efficient consumption, smart storage, and informed planning not just feeding power into the grid.
Solar is still worth it, but strategy matters more than ever.
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