Nepra shifts solar users to net-billing

February 10, 2026 (MLN): The National Electric Power Regulatory Authority (Nepra) has formally notified updated metering and billing regulations for solar energy prosumers, replacing the existing net-metering framework with a net-billing system.

The move aims to enhance grid stability and ensure fair compensation for electricity exported to the national grid.

Under the new rules, all distributed generation facilities must be equipped with meters capable of accurately measuring electricity flow in both directions.

If two separate meters are installed, energy calculations must match the result of a single-meter system.

The interconnection facilities, including meters, are required to comply with all safety and protection standards approved by Nepra to guarantee reliable operation of the national power network.

Meter readings will primarily be conducted through handheld units (HHU) or automated systems as directed by the Authority.

Nepra’s net-billing arrangement means electricity generated by prosumers will be purchased by distribution companies (Discos), while bills for electricity consumed from Discos will continue to be raised at applicable tariffs.

Units supplied by prosumers to Discos will now be billed at the National Average Energy Purchase Price (NAEPP).

At the end of each billing cycle, the net difference between electricity supplied and consumed will either be credited to the prosumer’s next bill or paid quarterly by the Disco if the prosumer’s export exceeds import.

The regulator clarified that the new billing system ensures accurate measurement of energy flows and shows actual consumption and contribution to the grid.

It also allows Nepra to revise the NAEPP rate during the term of any agreement, which will automatically be incorporated into existing contracts.

Existing prosumers will have their contracts transitioned to net-billing immediately, with export units credited for only one month instead of the previous three months.

New prosumers will receive five-year contracts, with exported electricity compensated at lower rates compared to current agreements.

While import units will continue to be billed according to slab-wise tariffs ranging from Rs37 to Rs55 per unit, excluding taxes and duties.

Additionally, prosumers will be limited to installing solar systems within their sanctioned load capacity.

Discos are prohibited from approving new applications if cumulative distributed generation at a particular transformer exceeds 80% of its rated capacity, preventing technical overloads and ensuring local grid stability.

According to Nepra, these regulations provide stricter technical standards, transparent procedures, and a billing methodology designed to better integrate distributed solar generation into the national grid.

The regulator emphasized that the rules aim to balance the growth of renewable energy with system reliability, prevent overloading of distribution networks, and protect the interests of all electricity consumers.

Nepra’s decision follows years of debate over net-metering practices, solar capacity penetration, and challenges faced by Discos in managing an increasing number of prosumers.

The new rules show a shift toward a more structured, fair, and sustainable solar energy framework in Pakistan.

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