The National Electric Power Regulatory Authority (Nepra) has issued a draft of the solar regulation 2026, inviting public feedback within 30 days.
“The Authority is pleased to publish draft of the amendment to the National Electric Power Regulatory Authority (Prosumer) Regulations, 2026 for eliciting public opinion,” read a statement issued by the regulator.
Nepra stated that the proposed amendment can be accessed through its official website, calling the public to send their comments on the proposed amendment to the Nepra registrar within 30 days.
The draft clarifies that existing solar net metering consumers will not be affected by the new regulation. Their current agreements will remain valid until their term expires.
The amendment notes: “Notwithstanding the repeal effected by these regulations, nothing shall affect approvals granted, licences or concurrences issued and agreements executed under the repealed regulations before the commencement of these regulations and any distributed generator having a valid agreement executed under the repealed regulations shall be billed in accordance with rate and mechanism provided in the repealed regulations till the expiry of the term of the agreement executed under the repealed regulations.”
The sub-regulation is deemed to have taken effect on February 9, 2026, and “shall always be deemed to have had effect accordingly.”
The federal government came under criticism after Nepra introduced the net metering reforms on February 9.
The move fundamentally changed how electricity is priced and is reshaping the economics of distributed generation.
Under the Nepra (Prosumer) Regulations, 2026, the regulator will now require power utilities to purchase surplus electricity from prosumers, including households, businesses and industries generating up to one megawatt at the national average energy purchase price, while selling electricity back to them at the applicable consumer tariff. This ends the one-to-one offset model that previously allowed solar users to neutralise their electricity bills.
The shift also shortens the contract horizon, with the standard agreement term cut to five years from the earlier seven years, renewable by mutual consent.
Existing prosumers will remain under their current contracts until expiry, but all future renewals and new connections will fall under the five-year net billing framework, significantly altering long-term investment returns.
If the value of electricity supplied by the prosumer is higher than the electricity taken from the utility, the extra amount will either be adjusted in the next bill or paid to the prosumer every three months.