Why Pakistan Is Empowering NEPRA as Rooftop Solar Drains the Grid — What It Means If You're Going Solar

• By Best Solar Company PK
• 26 Oct, 2026
• Solar Policy
• 8 min read

If you have been waiting for the "right moment" to put panels on your roof, the policy ground beneath **NEPRA rooftop solar** rules is shifting fast. On 8 October 2026, the government signalled a move to strengthen the National Electric Power Regulatory Authority (NEPRA) precisely because mass rooftop solar adoption is eating into the electricity that distribution companies (DISCOs) sell. For Pakistani homeowners and businesses, this is not abstract bureaucracy — it directly shapes how much you will earn for your exported units and how quickly your system pays for itself.

This article breaks down what the government actually did, why solar is rattling the grid, and what the signal means if you are planning to go solar this year.

What the Government Just Did to Strengthen NEPRA

Finance Minister Muhammad Aurangzeb chaired the second meeting of the **Steering Committee on Power Sector Regulatory Regime** at the Finance Division. The committee is reviewing a structural overhaul of how power is regulated, with NEPRA's hand strengthened at the centre of it.

The reforms under discussion include:

• **Network–supply separation** — splitting the "wires" business (maintaining poles, lines and transformers) from the competitive business of actually selling electricity.
• **Modernised regulations** that keep pace with rooftop solar, batteries and distributed generation.
• **Better subsidy targeting** so relief reaches genuine low-income consumers instead of leaking across the board.
• **More competition** and private-sector participation in supply.
• **Regulatory predictability** to reassure investors.

Read the official mandate on the <a href="https://nepra.org.pk/" target="_blank" rel="noopener">NEPRA website</a> to see how its remit is defined.

Why Rooftop Solar Is Draining the Grid

The scale of adoption is the real story. Solar capacity under the net-metering framework exploded from roughly **190 MW in FY2020 to nearly 7,000 MW by FY2026** — close to a 37-fold jump in six years. Net-metered connections across all DISCOs combined have crossed **750,000**, with LESCO (Lahore) alone past 180,000.

Three forces drove this boom:

• Electricity tariffs rose by around **140%** between FY2021 and FY2025.
• The rupee depreciated by roughly **75%** over the same window.
• Imported panel prices fell by about **60%**, making systems far cheaper upfront.

The catch for the grid: every solar home generating its own power during daylight is a customer buying far fewer units — yet the DISCOs' fixed costs (lines, capacity payments, staff) do not fall. The old one-to-one net-metering credit was estimated to cost the sector around **Rs. 101 billion in FY2024** alone. That lost revenue gets shifted onto non-solar consumers, which is exactly the "cross-subsidy" problem the reforms target.

From Net Metering to Net Billing: The New Money Math

This is where the policy shift hits your wallet. NEPRA repealed the Net Metering Regulations 2015 and replaced them with the **Prosumer Regulations 2026**, effective 8 February 2026 — moving the country from net *metering* to net *billing*.

Under net metering, one exported unit cancelled one imported unit at the full retail rate. Under net billing, your exported units are bought at a much lower reference "buyback" rate, while everything you import is still charged at the full retail tariff.

| Factor | Old Net Metering | New Net Billing (2026) | |---|---|---| | Export value | ~Rs. 25–27/unit (offset at retail) | ~Rs. 10/unit buyback (reported between Rs. 8 and Rs. 11) | | Import charge | Netted against exports | Full retail tariff, ~Rs. 55–65/unit | | Contract term | 7 years | 5 years | | New fee | None | Rs. 1,000/kW non-refundable concurrence fee | | Existing users | — | Grandfathered near the old ~Rs. 25.32/unit rate |

Separately, in August 2026 the government **scrapped the NEPRA approval requirement for systems up to 25 kW**, letting DISCOs approve small rooftop installations directly — a rare piece of genuine simplification amid the tightening.

For the full rule-by-rule breakdown, see our guide to the new net billing and Prosumer Regulations.

What This Signals If You're Planning to Go Solar

Here is the honest read of the direction of travel: **the days of treating the grid as a free battery are over.** The system is being re-engineered so that solar pays you most when you *use* your own power, not when you export surplus.

What that means practically:

• **Self-consumption is now king.** Sizing a system to export heavily no longer makes financial sense at a ~Rs. 10 buyback versus a ~Rs. 60 import tariff.
• **Payback periods have lengthened** for export-heavy designs, but systems sized to your daytime load still pay back fast — often in 3 to 5 years given today's tariffs.
• **Batteries are moving from luxury to logic.** Storing midday surplus to run evening loads lets you dodge both the weak buyback and the full retail import rate.
• **Expect more change, not less.** With NEPRA empowered and reviewing rules continuously, lock in clarity on your tariff category before signing.

**Original tip from the field:** before you finalise a quote, pull 12 months of your own bills and map your *hourly* usage, not just the monthly total. In 2026 the winning system is the one matched to when you actually consume — a household that runs its AC, pump and appliances at midday should undersize exports and maximise self-use, while a daytime-empty home should prioritise a battery. This single step changes the economics more than haggling over panel brand. If you want help running the numbers, our team covers it in how to size a solar system in Pakistan.

Frequently Asked Questions

**Is the government banning net metering or rooftop solar in Pakistan?** No. Rooftop solar is encouraged — the government even removed NEPRA approval for systems up to 25 kW. What changed is the compensation model: new applicants move from net metering to net billing, where exported units earn a lower buyback rate.

**Will my existing net-metering agreement be cancelled?** No. Existing consumers are grandfathered and continue selling to the grid at roughly the earlier Rs. 25.32/unit rate for the remainder of their agreement. The new buyback and 5-year term apply to fresh applications after 8 February 2026.

**Does a stronger NEPRA mean better or worse deals for solar owners?** It cuts both ways. A stronger regulator should mean more predictable, enforceable rules and faster DISCO approvals — but also tighter control of buyback rates. The clear signal is to design for self-consumption rather than banking on generous export income.

**Is it still worth going solar under net billing?** Yes, for most consumers. With retail tariffs near Rs. 55–65/unit, every unit you generate and use yourself is a unit you don't buy at that price. Correctly sized systems still deliver strong returns; the strategy has simply shifted from "export everything" to "use everything."

The Bottom Line

The move to empower NEPRA confirms what the numbers already showed: rooftop solar has grown too big for the grid to ignore. Policy will keep tightening around exports while rewarding self-reliance. If you plan around **self-consumption, right-sizing and storage**, going solar in 2026 remains one of the smartest hedges against Pakistan's rising electricity costs.

Want a system designed for the net-billing era? Get a free solar assessment from Best Solar Company PK and we'll size it to your actual usage — not yesterday's rules.

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.