Solar Net-Metering Consumers to Witness Reduction in Benefits

Pakistan’s National Electric Power Regulatory Authority (Nepra) has scheduled a public hearing on February 6 to review proposed changes to the country’s solar net-metering system.

Proposed Changes to Solar Net-Metering

Nepra stated the hearing was prompted by comments received from various stakeholders, including government bodies, power utilities, organizations, and the general public. All stakeholders have been invited to present their views.

The regulator has issued draft Prosumer Regulations 2025, which propose limiting new solar installations to a consumer’s sanctioned load. This replaces the current rule allowing installations of up to 150 percent of sanctioned capacity.

Existing net-metering consumers will continue under their current seven-year contracts until those agreements expire. The draft regulations also reduce the contract period for new net-metering connections from seven years to five years, with renewal subject to mutual consent.

Regulation and Payment Mechanisms

Nepra will directly regulate and license solar systems ranging from one kilowatt to one megawatt. The proposed rules also include changes to the payment mechanism for surplus electricity supplied to the grid.

Under the proposal, prosumers will receive the national average energy purchase price, estimated at about Rs. 13 per unit, instead of the current rate of around Rs. 26 per unit. Nepra plans to replace net metering with net billing, charging imported electricity at the applicable tariff and crediting exported power at the revised rate.

Nepra said the proposed rules aim to update the regulatory framework as on-grid solar capacity continues to expand across the country.