Net metering lets solar-equipped homes and businesses export surplus units to the grid and receive a credit back on their electricity bill. It has transformed rooftop solar economics in Pakistan since 2015 — but the rules changed materially in 2024–2025, and the payback math is different in 2026 than the numbers your neighbour quoted two years ago. Here is the current picture.
How net metering works
Your rooftop solar system generates DC electricity during the day. An inverter converts it to AC and pushes it into your building's wiring. Whatever you consume in that moment is used directly — you avoid buying that unit from the grid. Whatever you don't use flows backwards into the grid through a bidirectional meter, and each exported unit is credited against imported units on your monthly bill.
At month-end the DISCO nets your import against export. If you imported 300 units and exported 250, you pay for the difference (50 units) plus fixed charges. If you exported more than you imported, the extra credit rolls over to next month.
The buy-back rate — the biggest 2025 change
NEPRA sets the buy-back rate. Historically it was pegged to national average purchase price (NAPP) — around Rs. 19–24/unit through 2022, dropping to Rs. 8–10/unit briefly in 2025 before settling. As of early 2026 the residential buy-back rate is approximately Rs. 10–11/unit for new connections (grandfathered older systems on Rs. 19+/unit terms).
That is dramatically lower than the Rs. 27+/unit rate people quote from 2023. It is still well above zero, but it re-orders every payback calculation.
Who qualifies
Any consumer with:
- A 3-phase connection (single-phase is being enabled in more DISCOs in 2026 but is still uneven)
- An approved bidirectional meter installed by the DISCO
- A NEPRA-licensed installer's design, wiring test report and safety compliance
- System size at least 1 kW and up to sanctioned load (typically 25 kW for residential; higher for commercial and industrial)
The DISCO takes 4–8 weeks from application to meter installation. Some circles are faster; K-Electric in Karachi is typically slower.
Realistic payback in 2026
Numbers depend on system size, self-consumption share, and DISCO tariff, but a representative 5 kW residential system:
- System cost installed: Rs. 850,000–1,000,000 (panels + inverter + structure + wiring + net-metering paperwork)
- Monthly generation: ~700 units (Punjab), ~750 units (Sindh), ~650 units (KP), depending on shading
- Self-consumption offset: 400–500 units at ~Rs. 45–55/unit (unprotected tariff with taxes) = Rs. 20,000–27,500/month
- Export credit: 200–300 units at ~Rs. 10/unit = Rs. 2,000–3,000/month
- Total monthly savings: ~Rs. 22,000–30,000
- Payback: ~3.5–4.5 years
Payback is faster when you use most of your generation during the day (higher self-consumption share). It is slower when you export most of your generation.
When net metering is NOT worth it
- You use most of your solar during the day already. You save regardless of whether you're net-metered — the meter change and paperwork cost is money you don't need to spend.
- Your bill is small. Under Rs. 8,000/month, the payback stretches beyond 8 years and the paperwork is more hassle than value.
- You rent. You can't recoup the setup cost inside a typical lease term.
- You have serious shading. East/west roofs and shaded roofs generate 30–40% less than optimal south-facing tilt — the payback math falls apart.
- You're in a high-import zone. If your area sees frequent outages, batteries make more sense than pure grid-tied net metering.
Alternatives to full net metering
- Self-consumption solar without net metering. Simpler paperwork, no meter change, saves on daytime usage. Good if you're home during the day and can shift heavy loads (washing machine, dishwasher, pumping) to solar hours.
- Hybrid solar + battery. Panels + inverter + lithium battery. Uses solar during outages, exports minimal. Higher upfront cost, better resilience.
- Solar water heating. For hot water alone. Very cheap payback (2–3 years) if you were using electric geysers.
Paperwork checklist
1. Choose a NEPRA-licensed installer (list on nepra.org.pk). 2. Installer submits system design (single-line diagram, panel specs, inverter specs) to the DISCO. 3. DISCO issues technical feasibility letter (typically 2–3 weeks). 4. Signed agreement with the DISCO. 5. Installation and internal testing. 6. DISCO inspects the system and installs the bidirectional meter. 7. First export credit shows on the next monthly bill.
Total elapsed time: 6–10 weeks. Total paperwork cost: Rs. 15,000–35,000 depending on installer and city.
The one-tab check
Use our [net metering calculator](/calculators/net-metering) — plug in your average monthly generation, self-consumption and export, and see the credit and payback in seconds.