• By Best Solar Company PK
  • 11 Aug, 2026
  • Net Metering
  • 8 min read

If you installed rooftop solar in Pakistan recently — or you are about to — one number now decides how quickly your system pays for itself: the **National Average Energy Purchase Price (NAEPP)**. This is the rate the grid pays you for every surplus unit your panels export. Today it sits at roughly **Rs11–13 per unit**, a steep fall from the old buyback rate. Understanding how NAEPP is calculated, and why it can be cut again, is now the single most important part of any solar investment decision.

This guide breaks down exactly what sets the NAEPP export rate, why NEPRA re-benchmarks it every year, and what a further reduction would mean for your returns.

From Net Metering to Net Billing

For a decade, Pakistan ran a **net metering** system under the 2015 rules. Your meter simply netted imports against exports, and any surplus was credited at roughly the same tariff you paid for grid power — around **Rs27 per unit**. That one-to-one exchange made solar payback fast.

That era ended on **9 February 2026**, when NEPRA notified the **Prosumer Regulations 2026**, moving all new solar consumers to a **net billing** model. Under net billing the two sides of your bill are decoupled:

  • You **buy** grid electricity at the full retail tariff — commonly **Rs37–55 per unit**.
  • You **sell** surplus solar at the NAEPP rate — around **Rs11–13 per unit**.

The gap between those two numbers is the whole story. It rewards you for using your own solar power in real time and pays comparatively little for whatever you push back to the grid.

Net billing flips the maths: self-consumption is now worth 3–4 times more than export. Sizing and usage habits matter far more than they did under old net metering.

Importantly, **existing net-metering consumers are protected** under their current agreements for the remainder of their contract term. The new mechanism applies to fresh connections and to renewals once older contracts expire.

What Actually Sets the Rs11–13 NAEPP Rate

The name is the explanation. NAEPP is the **average energy** cost of purchasing electricity across the national system — and the key word is *energy*.

Pakistan's power-purchase cost has two big parts:

1. **Energy (fuel) charges** — the actual cost of the coal, gas, LNG, or diesel burned to generate a unit. 2. **Capacity charges** — the fixed capacity payments owed to power plants whether or not they generate.

The old buyback benchmark, **NAPP (National Average Power Purchase Price)**, bundled *both* components together, which is why it landed near Rs27. NAEPP deliberately strips out the capacity portion and pays you **only for the fuel/energy component**.

That single design change is what pushed the rate down to the Rs11–13 range — roughly a **52% reduction** versus the old benchmark. NEPRA's logic is that a rooftop exporter does not build or maintain generation capacity, so it should be compensated only at the system's **marginal fuel cost**, not the full sunk cost of the fleet.

Here is the mechanism side by side:

| Feature | Old benchmark (NAPP) | New benchmark (NAEPP) | |---|---|---| | Full name | National Average Power Purchase Price | National Average Energy Purchase Price | | What it pays for | Fuel **+** capacity charges | Fuel (energy) component **only** | | Approx. rate | ~Rs27/unit | ~Rs11–13/unit | | Regulation | 2015 net metering rules | 2026 Prosumer (net billing) rules | | Contract term | 7 years | 5 years |

Why NEPRA Re-benchmarks NAEPP Every Year

NAEPP is not a fixed figure carved into the regulations. It is a **re-benchmarked, annually determined rate**, and that is by design.

The fuel cost of Pakistan's grid changes constantly. It depends on:

  • **International fuel prices** — coal, RLNG, and furnace-oil rates move with global markets and the rupee's exchange rate.
  • **The generation mix** — as cheaper hydro, nuclear, and utility-scale solar take a larger share, the average fuel cost of a unit falls.
  • **DISCO-level dispatch** — which plants actually run to meet demand feeds directly into the average.

Because these inputs shift year to year, NEPRA recalculates NAEPP through official notifications so the export rate tracks the system's *current* marginal energy cost. In principle this cuts both ways: if fuel prices spike, NAEPP can **rise**; if the grid adds more cheap renewable capacity, the average energy cost — and therefore NAEPP — can **fall**.

For a homeowner, the practical takeaway is that the rate you sign up at is **not guaranteed for life**. It is reviewed, and your 5-year contract locks you into a mechanism that can be re-benchmarked at each determination.

How a Further Cut Would Hit New Solar Owners

Here is where the annual review becomes a real financial risk. Because the whole trend in Pakistan is toward **more cheap solar and hydro on the grid**, the structural pressure on the average energy cost is *downward*. That means the next NAEPP re-benchmark could plausibly push the export rate below today's Rs11–13.

Consider a simple example. Say a household exports **300 units a month** of surplus solar:

  • At **Rs13/unit**, that surplus is worth **Rs3,900/month** — about Rs46,800 a year.
  • At **Rs8/unit** (roughly the level some January 2026 figures already implied), the same 300 units earn **Rs2,400/month** — about Rs28,800 a year.

That is a **Rs18,000 drop in annual export income** from a single re-benchmark — and it lands entirely on the export portion of your bill, extending your payback period by months.

The practical, first-hand lesson our installation teams now give every client is blunt: **stop building your business case on export income.** With self-consumption worth Rs37–55 a unit and export worth barely a quarter of that, the smart move has changed:

  • **Size the system to your daytime load**, not to maximise surplus. Oversizing just to export is now poor economics.
  • **Shift heavy loads to daylight hours** — run the AC, pump, washing machine, and iron while the sun is up.
  • **Model your payback at a lower NAEPP**, e.g. Rs8, so a future cut does not wreck your numbers.
  • Consider **battery storage** if your evening load is high, so you store cheap solar instead of exporting it cheaply.

For a full walkthrough of how the new rules change system design, see our guide to net billing vs net metering in Pakistan and our breakdown of solar payback periods under the 2026 rules.

You can always confirm the current benchmark directly on the regulator's own portal — NEPRA publishes its tariff determinations and prosumer notifications, and the Alternative Energy Development Board tracks national renewable policy.

Frequently Asked Questions

**What does NAEPP stand for and what is the current rate?** NAEPP is the National Average Energy Purchase Price — the benchmark NEPRA uses to pay rooftop solar owners for exported units under the 2026 net billing rules. It currently sits at roughly Rs11–13 per unit, with some determinations pointing closer to Rs8, versus about Rs27 under the old system.

**Why is NAEPP so much lower than the old net metering rate?** The old NAPP benchmark paid for both fuel and capacity charges. NAEPP pays only the fuel (energy) component, on the logic that a prosumer supplies energy but not generation capacity. Removing capacity charges cut the rate by around 52%.

**Can the NAEPP export rate go down again?** Yes. NEPRA re-benchmarks NAEPP annually based on fuel prices and the national generation mix. As cheaper hydro and solar grow their share, the average energy cost — and therefore your export rate — could fall further. It can also rise if fuel costs spike.

**Am I protected if I already have net metering?** Existing net-metering consumers keep their current agreement and rate until their contract term ends. The NAEPP net billing model applies to new connections and to renewals after older contracts expire.

The Bottom Line

The Rs11–13 NAEPP rate is not an arbitrary number — it is Pakistan's marginal fuel cost, stripped of capacity charges and re-set every year. That makes it inherently changeable, and the structural trend points down. Solar is still a strong investment in 2026, but only if you build the case around **using your own power**, not selling it. Size for your load, shift usage into daylight, and stress-test your payback against a lower export rate.

Want a system designed for the net billing era? Get a free solar assessment from Best Solar Company PK and we'll model your real returns at today's NAEPP — and at a lower one.

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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.