NAEPP Explained: Why Your Solar Export Pays Only Rs8–11 in 2026

• By Best Solar Company PK
• 01 Sep, 2026
• Net Metering
• 9 min read

If your electricity bill still shocks you despite a rooftop system, the culprit hides in one acronym: **NAEPP**. The National Average Energy Purchase Price is the rate your DISCO now pays for every solar unit you export — and in 2026 that rate sits at roughly **Rs8–11 per unit**. Meanwhile, the units you pull *back* from the grid cost you Rs44–60. That gap is the whole story, and understanding NAEPP is the difference between a system that pays for itself and one that quietly wastes power.

This guide breaks down what NAEPP actually is, why NEPRA slashed export payments, and — most importantly — how to size your solar system so you *use* your own electricity instead of gifting it to the grid.

What Is NAEPP, and Why Did It Replace the Old Rate?

NAEPP stands for the **National Average Energy Purchase Price** — the average *energy-only* cost that power-purchasing agency CPPA pays generators for a unit of electricity, stripped of capacity payments, transmission, and distribution margins.

Previously, net-metered homes enjoyed a near one-to-one deal: a unit exported cancelled a unit imported at the full retail tariff (around Rs22–27/unit under the older National Average Power Purchase Price, or NAPPP). That was generous — arguably *too* generous, regulators argued, because rooftop owners were being paid the retail rate for wholesale power.

In March 2025, the ECC approved a buyback of **Rs10/unit**, and by early 2026 NEPRA's draft **Prosumer Regulations 2026** formalised a shift toward **net billing / gross metering** pegged to NAEPP — proposed at about **Rs11.30/unit** for new connections.

Why the Rs8–11 vs Rs44–60 Gap Is So Brutal

Here's the asymmetry that stings. You **sell** at NAEPP (~Rs8–11) but you **buy** at the full retail tariff, taxes and surcharges included.

For an unprotected residential consumer, current slabs run roughly:

| Monthly usage (units) | Approx. buy-back rate | |---|---| | 201–300 | Rs33/unit | | 401–500 | Rs39/unit | | 601–700 | Rs42/unit | | Above 700 | Rs47/unit | | ToU peak (≥5 kW load) | Rs46.85/unit |

Add General Sales Tax, fuel-cost adjustments, and financing/quarterly surcharges, and the *effective* import cost for a mid-to-high user often lands between **Rs50 and Rs60 per unit**.

So under net billing, every unit you export earns ~Rs10, but every unit you later import costs ~Rs50. That is a **5-to-1 loss** on any energy that leaves your roof. The old model rewarded oversizing and daytime overproduction; the new one punishes it.

Existing vs New Consumers: Who's Affected?

• **Existing net-metered consumers** with valid seven-year agreements are protected — they keep their contractual unit-exchange (around Rs22–27 value) until the agreement expires.
• **New applicants** (installed after the new regime takes effect in 2026) fall under **NAEPP-based net billing**, with contracts shortened to **five years**.
• After expiry, DISCOs may terminate or migrate existing users onto the new framework.

NEPRA has also proposed capping system size to your **sanctioned/approved load** and applying transformer-level limits once local solar penetration hits 80%. Translation: you can no longer install a giant array purely to farm export credits.

The New Winning Strategy: Size for Self-Consumption

Under NAEPP economics, **self-consumption is king**. A unit you consume yourself is a unit you *don't* buy at Rs50 — that's your true return, not the Rs10 export cheque. The goal shifts from "maximise export" to "maximise the share of solar you use in real time."

Here's how to do it practically.

### 1. Match array size to daytime load, not total bill

Audit *when* you use power. If your household draws 3–4 kW during daylight (fans, AC, fridge, pumps, work-from-home), size the array so midday generation roughly tracks that daytime demand — not your 24-hour total. A common Pakistani mistake is buying a 10 kW system for a home that only uses 3 kW while the sun shines, then exporting the surplus at Rs10.

### 2. Shift heavy loads into sunlight hours

• Run washing machines, irons, water pumps and dishwashers between **10 am and 4 pm**.
• Pre-cool rooms in the afternoon so ACs coast on stored coolth into the evening.
• Charge EVs, e-bikes and power tools at noon, not midnight.

Every load you drag into daylight converts a Rs10 export into a Rs50 saving.

### 3. Add battery storage — selectively

A modest **5–10 kWh lithium battery** lets you bank the midday surplus and discharge it during Rs46+ peak evening hours. You're effectively "selling to yourself" at retail rate. With NAEPP export near Rs10, batteries make far more sense in 2026 than they did under old net metering. Run the numbers on payback, though — lithium isn't cheap, so prioritise it if your evening ToU peak usage is high. See our solar battery storage guide for sizing math.

### 4. Right-size, then verify against your sanctioned load

Because NEPRA caps systems at approved load, confirm your sanctioned kW before quoting. Oversizing beyond it may be rejected at the DISCO application stage. Our net metering application walkthrough covers the paperwork.

### A quick worked example

A Lahore home uses **900 units/month**, ~60% in daylight. A well-sized **5 kW system** generating ~650 units could cover almost all daytime load with minimal export. At Rs50 avoided cost, that's **~Rs32,500/month saved** — versus a poorly matched 8 kW system that exports 250 surplus units at Rs10 (Rs2,500) instead of avoiding them at Rs50. Same sunshine, wildly different returns.

Original Tip: Chase Your "Self-Consumption Ratio"

Ask your installer to model one number: your **self-consumption ratio** — the percentage of generated units you use on-site. Under NAEPP, target **80%+**. Anything below 60% means you're exporting too much cheap power and should either shrink the array, add storage, or reschedule loads. Most quotes never mention this metric; insist on it.

For deeper planning, review current solar panel prices in Pakistan alongside your load audit before committing.

Frequently Asked Questions

**What does NAEPP stand for in Pakistan's solar policy?** NAEPP is the **National Average Energy Purchase Price** — the average wholesale energy-only cost the grid pays generators per unit. NEPRA uses it as the buyback rate for surplus rooftop solar under the 2026 net-billing regime, currently around Rs8–11/unit.

**Why do I buy electricity at Rs50 but sell mine at only Rs10?** Because you sell at wholesale (NAEPP) but buy at full **retail tariff plus taxes and surcharges**. Retail rates bundle capacity payments, transmission, distribution and levies that the export rate excludes — creating the 5-to-1 gap.

**Will NAEPP affect my existing net metering agreement?** No. Consumers with valid agreements keep their original unit-exchange terms until the contract expires (typically seven years). NAEPP net billing applies to **new** applicants and, eventually, to renewals.

**Is solar still worth it in Pakistan in 2026?** Yes — but the payback now comes from **self-consumption**, not export. By sizing correctly, shifting loads to daytime and optionally adding a battery, most homes still recover their investment in roughly 3–5 years.

The Bottom Line

NAEPP hasn't killed rooftop solar — it has changed the winning move. Export is now an afterthought worth pennies; the real money is in **using your own sunshine**. Size to your daytime load, shift heavy appliances into daylight, add storage where evenings are expensive, and track your self-consumption ratio.

Ready to size a system that beats NAEPP instead of feeding it? **Get a free self-consumption assessment from Best Solar Company PK** and we'll model your exact numbers before you spend a rupee.

*Sources: NEPRA Prosumer Regulations 2026 draft; ECC net-metering amendments (March 2025); NEPRA residential tariff schedule 2025–26.*

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.