Solar Net Metering in Pakistan

The Ultimate Guide to Policy, Process, and Savings

For homeowners and businesses across Pakistan, the allure of solar power has grown beyond just backup electricity. The true financial power comes from NEPRA's net metering policy, which allows you to transform your solar system into a personal power station, turning excess daytime energy into direct savings on your monthly bill.

However, the landscape is evolving. In December 2025, NEPRA introduced the Prosumer Regulations 2025, a major update to the original 2015 rules. This guide cuts through the complexity, explaining the current framework, the crucial new changes, and how you can navigate them to maximize your energy independence and financial return

Solar Net Metering in Pakistan
Solar Net Metering in Pakistan

Understanding Net Metering: How It Works

The Core Principle

Solar net metering is a billing mechanism between you and your local electricity distribution company (DISCO). Here's the simple breakdown:

  1. Generate: Your solar panels produce electricity during the day.
  2. Consume: You first use this solar energy to power your home or business.
  3. Export: Any excess energy you don't use instantly is fed back into the national grid.
  4. Credit: Your special bi-directional meter records this exported energy. Your DISCO grants you a credit for these exported units, which is applied to your monthly electricity bill.
  5. Net Bill: At the billing cycle's end, you pay only for the "net" energy used—the difference between the units you imported from the grid and the units you exported to it.

Types of Solar Panels Available in Pakistan

The 2025 regulations introduce a fundamental shift that every prospective solar owner must understand.

Feature

Old System (Net Metering)

New System (Net Billing)

Billing Method

One-to-one unit offset.

Separate import/export transactions.

Export Credit Value

~PKR 27/kWh (National Average Power Purchase Price - NAPP).

~PKR 13/kWh (National Average Energy Purchase Price - NAEPP).

Financial Impact

Exported units directly offset imported units of equal value.

Exports earn less than what you pay for imports, making self-consumption more valuable.

This change means new systems will see a 52% reduction in the value of exported electricity, extending payback periods but still making solar a sound investment.

The Step-by-Step Application Process

1. Feasibility and NOC

Contact your DISCO (e.g., LESCO, IESCO, K-Electric) to check feasibility and obtain a No Objection Certificate (NOC) for your proposed system size.

2. System Installation

Have your system installed by a reputable, certified company. Ensure all components, especially the inverter, are on NEPRA's approved list.

3. Application Submission

Your installer will typically help submit the application for a Distributed Generation License to NEPRA/your DISCO, along with required diagrams and documents.

4. Meter Replacement

The DISCO will replace your existing meter with an approved bi-directional meter.

⚠️ Note on Delays: Be prepared for potential administrative delays. By mid-2025, there was a backlog of over 4,000 pending applications with various utilities. Choosing an experienced installer who can navigate this process is vital

NEPRA's Net Metering Policy and 2025 Updates

The regulatory framework is governed by the NEPRA Prosumer Regulations 2025, which replaced the 2015 rules.

Key Eligibility and Rules:

  • Who Can Apply: Residential, commercial, and industrial consumers with a three-phase connection.
  • System Capacity: Allowed up to 1 MW, but for most consumers, the new key limit is that your solar system's capacity cannot exceed 100% of your sanctioned load (down from the previous 1.5x allowance).
  • Metering: A DISCO-installed bi-directional smart meter is mandatory.
  • Agreement Term: The standard net metering agreement is now for 5 years (reduced from 7), renewable by mutual consent.

Protection for Existing Users ("Grandfathering")

A critical provision is that existing net metering customers continue under their old contract terms (including the ~PKR 27/kWh credit rate) until their original agreement expires. This protects early adopters and provides market stability

Solar Net Metering in Pakistan

The Financial Benefits: How Net Billing Saves Your Money

Even with the reduced export rate, solar with net billing offers compelling savings:

  • Direct Bill Reduction: You avoid paying the high retail tariff (often PKR 35-47/kWh) for every unit of solar energy you consume directly.
  • Credit for Surplus: You still earn credits (~PKR 13/kWh) for excess energy, further chipping away at your bill.
  • Hedge Against Inflation: You lock in a portion of your energy costs at the price of your solar system, protecting yourself from future electricity tariff hikes.
  • Strong Return on Investment (ROI): While payback periods have extended from 2-4 years to an estimated 5-7 years, solar remains one of the most reliable long-term investments for a Pakistani household or business

Maximizing Your Savings Under the New Rules

To get the best returns, shift your strategy from maximizing exports to maximizing self-consumption:

  • Shift Daytime Loads: Run energy-intensive appliances (ACs, washing machines, and water pumps) during peak solar production hours.
  • Right-Size Your System: Design a system that matches your daytime load profile, rather than oversizing it for exports.
  • Consider Battery Storage: Adding a battery lets you store excess solar energy for use at night, dramatically increasing self-consumption and reducing grid imports
FAQ's About

Solar Net Metering in Pakistan

Yes.  The primary savings come from using your own solar energy and avoiding retail tariffs. Even with lower export credits, a well-sized system offers excellent long-term savings and energy security.

No. Pakistani policy provides bill credits, not cash payments. Excess credits are typically carried forward to offset future bills.

No. Net billing requires a grid-tied or hybrid system to interact with the national grid. Pure off-grid systems are ineligible

You and your DISCO will renew the agreement under the terms and conditions prevailing at that time.

Currently, the import of solar panels and related equipment often benefits from favorable tax policies to encourage renewable energy, but you should confirm the latest FBR regulations with your installer.

Yes. Absolutly we offer best solar water pumping system 

Solar Net Metering in Pakistan

Ready to Become a Prosumer?

Don't let policy changes cloud your path to energy independence. Our team at Aziz & Co. Electronics is here to guide you through every step, from understanding the latest NEPRA regulations and designing an optimally sized system to handling the entire application and net metering licence process with your DISCO.

Get a free, no-obligation consultation today. Bring your last few electricity bills, and let's calculate your potential savings under the new net billing framework

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