Your Complete Guide to NEPRA’s Net Metering Application Process
The journey to energy independence in Pakistan is a smart and sustainable one, but navigating the administrative process can feel daunting. For years, homeowners and businesses have harnessed the power of the sun to reduce electricity bills and gain control over their energy needs. However, the regulatory landscape has evolved significantly.
The National Electric Power Regulatory Authority (NEPRA) has introduced new guidelines, shifting from the original Net Metering Regulations of 2015 to the Prosumer Regulations 2025. This guide will walk you through every step of the application process, clarify the new rules, and help you understand what these changes mean for your solar investment.
Table of Contents
Understanding Net Metering the New NEPRA Rules: Net Metering vs. Net Billing
Before you apply, it’s crucial to understand the new framework governing solar energy exports to the grid. Pakistan has transitioned from a “net metering” to a “net billing” system, and the difference is financially significant.
| Feature | Previous System (Net Metering, 2015) | New System (Net Billing, 2025) |
| Core Mechanism | One-to-one unit offset. | Separate purchase and sale transactions. |
| Billing Method | Export credits directly offset import costs at a comparable retail rate. | Electricity drawn from the grid is charged at the full retail tariff. Surplus solar energy is bought by the utility at a lower, government-determined rate. |
| Export Credit Rate | Approximately PKR 26 per kWh. | Proposed around PKR 11-13 per kWh (National Average Energy Purchase Price). |
| Agreement Term | 7 years. | 5 years, with possible mutual extension. |
| Impact on Bill | Could result in a near-zero bill if exports matched imports. | Consumers will see bills based on the difference between full-price imports and lower-credit exports. |
Key Takeaway: The financial benefit of sending power to the grid is now lower. This makes self-consumption—using the solar energy you produce in real-time, more valuable than ever. For new applicants, the process is now governed by these net billing rules. Important Note: Existing users with valid contracts under the old 2015 rules will continue to enjoy their terms until their agreement expires.
Eligibility Criteria: Are You Qualified?
To apply for a net billing connection, you must meet these basic requirements:
- Connection Type: You must have a three-phase electricity meter at your premises.
- Account Ownership: The electricity connection must be registered in the applicant’s name.
- System Capacity: Your solar system must be between 1 kW and 1,000 kW (1 MW) in capacity. A key new rule states your system’s generation capacity cannot exceed your sanctioned load from the utility.
- Consumer Type: The facility is available for residential, commercial, and industrial consumers.
Step-by-Step Application Process
Navigating the application requires patience and attention to detail. Here is a breakdown of the journey:
Step 1: Preliminary Assessment and System Design
Before any paperwork, work with a certified solar installer like Aziz and Co. Electronics. Analyze your electricity bills to determine your average monthly consumption. Your installer will then design a system that fits your roof, meets your energy needs, and complies with the new rule of not exceeding your sanctioned load.
Step 2: Documentation Gathering
Your installer will help you prepare the necessary documents, which typically include:
- Copy of your Computerized National Identity Card (CNIC).
- Copy of recent electricity bills.
- A formal installation agreement with your solar company.
- Technical details of the proposed system (panel and inverter specs, single-line diagram).
Step 3: Submission to Your DISCO
The application is submitted to your local Distribution Company (DISCO), such as LESCO, IESCO, or K-Electric. The DISCO will conduct a feasibility check. Be advised: As of mid-2025, there were over 4,000 pending applications nationwide, and some DISCOs have paused new connections, so delays are common.
Step 4: Installation and DISCO Inspection
Once you receive a provisional approval or No Objection Certificate (NOC), your installer can proceed with the physical installation. After installation, the DISCO will send an inspector to verify that the system meets all technical and safety standards.
Step 5: Meter Replacement and Final Agreement
This is a critical change under the new rules. The DISCO will replace your existing meter. Contrary to the old single bi-directional meter, the new regulations require separate meters for importing and exporting electricity. Finally, you will sign a net billing connection agreement with your DISCO, which will be valid for an initial term of 5 years.
Frequently Asked Questions About Net Metering
Q: Under the new system, can I still get my electricity bill to zero?
A: It is much more difficult. Since you are charged the full retail price for power you take from the grid but credited at a lower rate for what you send back, a perfect balance will not cancel out. Maximizing your own use of solar power during the day is key to savings.
Q: What happens after my 5-year agreement ends?
A: The agreement can be renewed by mutual consent between you and your DISCO. It will be renewed under the terms and conditions prevailing at that time.
Q: I have an old net metering contract. What happens to me?
A: You are “grandfathered” in. Your existing contract under the 2015 rules remains valid until its original expiry date (typically 7 years from signing). Only after it expires will you transition to the new net billing terms.
Q: Can I sell my extra solar power to my neighbor?
A: No. The regulations clearly state that prosumers are not allowed to sell excess electricity to other consumers. All surplus energy must be supplied to the national grid.
Q: Are there any application fees?
A: Yes. NEPRA charges a one-time fee for the generation license, which varies by system size (e.g., it is waived for systems under 20 kW).
Conclusion: Navigating the New Energy Landscape
The path to becoming a “prosumer,” both a producer and consumer of energy in Pakistan, is now shaped by the 2025 regulations. While the new net metering, net billing system offers a different financial model than before, solar power remains an excellent investment for energy security and long-term cost management.
The application process demands careful planning and partnership with a knowledgeable installer. At Aziz and Co. Electronics, we guide our clients through this evolving process, from designing systems optimized for self-consumption to managing the intricacies of DISCO applications. By understanding these steps and rules, you can confidently make the move to a smarter, more sustainable energy future.