Net metering vs net billing — Pakistan's 2026 solar shift
On 13 March 2026, NEPRA notified SRO 251(I)/2026, replacing net metering with net billing for every new distributed-generation application. The change roughly halves the value of exported solar units and reshapes how a rooftop system should be sized. Here's everything that changed and what to do about it.
Old vs new — side by side
| Aspect | Net metering (pre-Mar 2026) | Net billing (Mar 2026 →) |
|---|---|---|
| Export credit rate | Full import tariff (Rs 22-27/unit) | NAPPP (Rs 11-13/unit) |
| Import billing | Full retail tariff | Full retail tariff (unchanged) |
| Netting basis | Unit-for-unit within billing month | Separate PKR-based settlement |
| Agreement term | 7 years, transferable | 7 years, transferable |
| Typical payback | 2-3 years | 5-7 years |
| Optimal sizing | Match monthly consumption | Match daytime load |
Why the government made the change
Net metering worked as a subsidy from non-solar consumers to solar consumers. The distribution company still had to pay the full IPP capacity charge on the electricity it delivered to the solar household at night, but it received full-tariff export credits in return, meaning the household paid almost nothing toward capacity — and other consumers picked up the difference.
As solar adoption crossed 5 GW of installed rooftop capacity in early 2026, the cross-subsidy became fiscally material. Net billing reprices exports at the actual wholesale cost of the electricity (NAPPP), removing the cross-subsidy while preserving the direct self-consumption benefit that makes solar worthwhile.
What this means for your solar decision
- Self-consumption is king. Every unit you use directly from panels avoids Rs 22-42 of retail tariff. That math is unchanged and improving.
- Right-size for daytime. A 4 kW system that covers your midday load beats an 8 kW system that exports half its output at Rs 12.
- Consider hybrid inverters + a small battery only if evening peak is unavoidable — the arbitrage math is tight but improving as retail tariffs rise.
- Shift loads to daylight — dishwasher, washing machine, geyser, EV charging. Every load moved into solar hours is worth roughly 2× a load left at night.
- If you already have net metering, do nothing. Your 7-year agreement is grandfathered. Enjoy the old economics through the end of your term.