Net Metering Pakistan New Policy 2025
Pakistan’s solar energy market has grown rapidly over the last few years, and net metering played a major role in this expansion. Thousands of households and businesses installed solar systems mainly because they could export excess electricity to the national grid and reduce their power bills. However, in 2025 the Government of Pakistan introduced important changes to the net metering policy. These changes have a direct impact on new solar users and those planning to install solar systems in the future.
This detailed guide explains the new net metering policy of Pakistan in 2025, how it works, what has changed from the old policy, and whether solar is still a profitable option.
Introduction to Net Metering in Pakistan
Net metering is a billing mechanism that allows solar system owners to send surplus electricity to the national grid. In return, they receive energy credits that reduce their electricity bill. Earlier, this system made solar highly attractive because exported units were adjusted almost equally with imported units.
Due to the rapid increase in rooftop solar installations, the government reviewed the policy and introduced a revised framework in 2025 to balance grid stability and financial sustainability of power distribution companies.
Why the Government Changed the Net Metering Policy
The main reasons behind revising the net metering policy include:
The increasing number of net metering connections was reducing revenue for DISCOs
Grid stability issues due to unmanaged solar power injection
Higher burden on non solar consumers
Need for a more sustainable and controlled solar growth model
As a result, NEPRA and the government shifted the system from traditional net metering to a more regulated structure.
What Is the New Net Metering Policy 2025
Under the new net metering policy in Pakistan, several important changes have been introduced that affect new solar installations.
The biggest change is the transition from one to one unit adjustment to a reduced buyback mechanism. Earlier, one exported unit was adjusted against one imported unit. Now, exported electricity is purchased at a lower rate than the electricity purchased from the grid.
This new system is closer to net billing rather than classic net metering.
New Net Metering Buyback Rate 2025
Under the revised policy, electricity exported to the grid is purchased at a rate close to the National Average Power Purchase Price. This rate is lower than the retail electricity tariff.
Consumers now buy electricity at full tariff rates and sell surplus solar units at a reduced rate. This has reduced the financial benefit compared to the old policy.
Changes in Billing Method
Earlier system allowed full unit adjustment within the billing cycle. Under the new policy:
Exported units are recorded separately
Imported units are billed at normal electricity tariff
Exported units are paid at a fixed buyback rate
No one to one unit adjustment
This means solar users will still save money, but not as much as before.
Capacity Limits Under New Policy
The maximum allowed solar system capacity remains linked to the sanctioned load, but stricter checks have been introduced.
In most cases, solar capacity is allowed up to one point two five times of sanctioned load. Excessive oversizing is no longer approved easily.
This step is taken to prevent excessive power injection into the grid.
Contract Duration and Licensing
Under the new policy, net metering licenses are issued for a shorter duration compared to the old system.
Earlier agreements were usually valid for seven years. Now, contracts are generally issued for five years, after which renewal depends on prevailing regulations and tariff structure.
Impact on Residential Solar Users
For residential consumers, the new policy means:
Lower savings compared to old net metering
Longer payback period
Better planning required before installing solar
Higher importance of self consumption
Homes that use most of their electricity during daytime will benefit more than those exporting most of their energy.
Impact on Commercial and Industrial Users
Commercial and industrial users are more affected because they usually install larger systems.
However, businesses that operate during daylight hours can still benefit significantly as they consume most of the generated power themselves.
Export dependency is now discouraged, and system sizing has become more important than ever.
Is Solar Still Worth It in Pakistan After 2025
Yes, solar is still worth installing in Pakistan, but the strategy has changed.
Instead of exporting maximum electricity, the focus is now on self consumption. Solar systems designed to cover daytime usage give the best return.
Adding batteries can also increase savings by storing excess energy instead of exporting it to the grid.
Net Metering vs Net Billing in Pakistan
The old system worked on net metering where units were adjusted. The new system works closer to net billing where electricity is sold and purchased at different rates.
This change means solar is no longer a high profit model but remains a strong solution for reducing electricity bills and protecting against future tariff hikes.
Benefits of the New Policy
Even with changes, the new policy offers benefits:
Continued support for renewable energy
Reduced electricity bills
Lower dependence on grid power
Encouragement of energy efficiency
More stable national power system
Solar remains one of the safest long term investments in Pakistan.
Challenges of the New Policy
Some challenges include:
Longer payback period
Lower export income
Less attractive for oversized systems
More technical approvals required
However, with proper system design, these challenges can be managed effectively.
Future of Net Metering in Pakistan
Pakistan’s energy demand is increasing every year, and renewable energy is essential for long term stability. The government is expected to further refine solar policies rather than eliminate net metering completely.
Future policies may focus on:
Battery based systems
Time of use billing
Smart meters
Hybrid solar solutions
Solar energy will continue to play a key role in Pakistan’s energy mix.
Final Thoughts
The new net metering policy of Pakistan in 2025 marks a shift from profit based solar systems to consumption based solar planning. While financial returns are slightly reduced, solar energy remains a smart and reliable investment.
Homeowners and businesses should now focus on efficient system sizing, quality equipment, and maximum self usage to get the best results.
Add comment