Why the PM Wants Solar Users' Costs Off 37.6 Million Grid Bills — And What It Means Before You Install

• By Best Solar Company PK
• 21 Jul, 2026
• Solar Policy
• 8 min read

In February 2026, Pakistan quietly rewrote the rules that made rooftop solar so attractive. Then the Prime Minister stepped in — not to reverse the change, but to make sure the people who install solar *after* the new rules don't keep pushing their costs onto everyone else.

If you are a homeowner or business owner weighing a solar investment right now, this is the single most important policy shift to understand. It changes your payback maths, and it explains why the "install now, decide later" advice you may have heard is only half true.

The number that started the argument

The government's case rests on one uncomfortable statistic. Pakistan has roughly **466,000 net-metering solar consumers**. It has more than **37.6 million consumers who rely entirely on the national grid**.

According to the Power Division, net metering cost non-solar consumers about **Rs223 billion last year** — roughly **Rs2.44 per unit** baked into everyone else's bills. Without a policy change, officials projected that burden rising to about **Rs2.87 per unit** this fiscal year.

Here is why. Under the old net-metering system, a solar household exchanged units with the grid on a **1:1 basis** and was paid a generous **Rs25.98 per unit** for surplus electricity exported. That rate was close to the full retail tariff — far above what it actually costs the grid to buy power. The difference doesn't vanish. It gets spread across the tariff paid by every other consumer, including tenants, low-income households and small shops who can't afford a solar system in the first place.

What NEPRA actually changed

On **8 February 2026**, NEPRA's **Prosumer Regulations 2026** took effect, replacing the 2015 net-metering framework. The headline changes:

• **Net metering is replaced by net billing.** The 1:1 unit exchange is gone. Instead, the utility buys your surplus at a set rate and separately bills you for everything you draw from the grid at the normal consumer tariff.
• **The buyback rate dropped sharply** — from **Rs25.98 to around Rs11 per unit** for new prosumers, pegged to the national average energy purchase price rather than the retail tariff.
• **Contract terms shortened** from seven years to **five years**.
• The rules cover solar, wind and biogas systems up to 1 MW.

The Power Division argues this reduces the projected per-unit burden on non-solar consumers from **Rs2.87 down to about Rs2** — a saving of roughly **87 paisa per unit** for the 37.6 million grid-reliant households.

Where the Prime Minister stepped in

Here's the part that confused a lot of people. PM Shehbaz Sharif took notice of the new regulations and **directed the Power Division to file a review appeal with NEPRA** — but not to scrap net billing. His concern was narrower and specific: **existing solar users who signed up under the old terms should not be punished retroactively**, while genuinely new installations should move to the fairer net-billing rate.

The result was a **grandfathering amendment issued on 16 February 2026**. In plain terms:

• If you had a **valid net-metering agreement dated before 9 February 2026**, you are **exempt from net billing**. Your 1:1 exchange and your locked-in buyback rate stay in force **until the end of your original contract period**.
• If you install **after** that cut-off, you fall under net billing with the ~Rs11 buyback rate.

So the "surcharge" framing you may see in headlines is really about *stopping future cost-shifting*, not slapping a new fee on people who already went solar. The policy direction is settled: the subsidy is being wound down for new entrants, and further pressure to reduce the buyback rate has not gone away.

Why this still makes solar worth it — with different maths

It's easy to read all this as bad news for solar. It isn't. Rooftop solar in Pakistan reached nearly **7,000 MW of net-metering capacity in FY26** precisely because the economics are compelling even without a rich export rate.

The key mental shift is this: **the money is now in self-consumption, not export.**

Under net billing, every unit you generate and use *yourself* is worth the full retail tariff you avoid paying — often **Rs50–65+ per unit** on higher slabs — while every surplus unit you export earns only about **Rs11**. That completely flips the design logic:

• **Right-size your system** to your daytime load instead of oversizing to "sell" surplus. A system built to dump 40% of its output onto the grid no longer pays the way it used to.
• **Shift usage to daylight hours** — run the washing machine, water pump and heavy AC load while the sun is up.
• **Consider battery storage** if your evening consumption is high; storing a unit worth Rs55 of avoided tariff beats exporting it for Rs11.

For a typical 10 kW home system costing roughly **Rs1.6–2.2 million installed** (prices vary by brand and city), a self-consumption-focused design still commonly pays back in **4–6 years**, versus the 3–4 years boasted under the old export-heavy model. Longer, but far from broken — and immune to the next buyback-rate cut. See our related coverage on net metering vs net billing for a full comparison.

What to do before you install

• **Confirm your meter's connection date matters.** Grandfathering hinges on an agreement dated before 9 February 2026 — that window has closed for new applicants, so plan around net-billing terms, not the old ones.
• **Get quotes based on self-consumption, not export income.** Be sceptical of any vendor still selling payback on a Rs25 buyback rate.
• **Ask about the five-year contract term** and what happens at renewal.
• **Model your bill at Rs11 export and full-tariff import** so there are no surprises.

Frequently Asked Questions

**Is there a new surcharge on solar users right now?** Not a direct fee. The "cost falling on non-solar users" refers to the cross-subsidy built into net metering. The government's response was to move new installations to net billing (a lower Rs11 buyback rate), which reduces that shared burden rather than charging existing solar owners a surcharge.

**I already have net metering. Am I affected?** No, if your agreement is dated before 9 February 2026. The 16 February 2026 grandfathering amendment protects your original 1:1 exchange and buyback rate until your contract ends.

**What is the difference between net metering and net billing?** Net metering credited exported units against imported units at a 1:1 rate. Net billing pays you a fixed, lower rate (~Rs11/unit) for exports and separately bills you at full tariff for what you import. Self-consumption becomes far more valuable than export.

**Does solar still make financial sense in 2026?** Yes — but design for self-consumption. Because you avoid Rs50–65+ per unit of grid tariff on power you use directly, a right-sized system typically still pays back in 4–6 years, even with the reduced export rate.

**Could the buyback rate drop again?** It's possible. Officials have discussed rates as low as Rs10 per unit, and NEPRA links the rate to the national average purchase price. Building your investment case around self-consumption protects you from future export-rate cuts.

*Policy figures are based on NEPRA Prosumer Regulations 2026 and Power Division statements current as of July 2026. Verify the latest buyback rate and terms with your DISCO before signing.*

Best Solar Company PK designs and installs reliable solar systems in Rawalpindi, Islamabad, Lahore, Multan, Taunsa Sharif and Karachi. Contact us for a free survey and the best advice for your home or business.