The Ministry of Energy has approved a major revision to the net metering policy for solar power consumers across Pakistan.
According to sources in National Electric Power Regulatory Authority (Nepra), the decision was finalised after months of consultations with key stakeholders, including distribution companies (DISCOs) and regulatory bodies. Under the new net billing framework, solar consumers will be compensated at a fixed rate of Rs11 per unit for electricity supplied to the grid.
Officials said the duration of solar power agreements has been reduced to five years. Unlike the earlier net metering system, where excess electricity was adjusted against consumption, net billing will introduce a fixed per-unit exchange rate determined by Nepra. The electricity consumed from the grid will continue to be charged according to the applicable Nepra-approved tariff.
Previously, solar consumers benefitted from a higher compensation rate of Rs25.98 per unit under net metering. However, the revised policy aims to align solar power incentives with changing market dynamics and grid sustainability requirements.
Sources added that all solar installations with a load of up to 25 kilowatts will now require a licence from Nepra. Earlier, domestic, commercial, and industrial consumers with systems up to this capacity were exempt from licensing requirements.
The Ministry of Energy informed the federal government that continuation of the old policy was no longer feasible, citing financial and operational challenges faced by the power sector.
Ministry officials maintained that the determination of solar tariffs remains the responsibility of Nepra and that tariff structures and regulations evolve over time. They reassured consumers that the policy change would not significantly impact most solar users.