NAEPP Explained: Why Your Solar Exports Now Earn Rs 11–13/Unit in Pakistan

• By Best Solar Company PK
• 28 Sep, 2026
• Net Metering
• 8 min read

If you installed solar in 2026 expecting to "sell back" surplus units at the same price you buy them, the new rules will surprise you. Under Pakistan's shift from net metering to net billing, your solar exports are now paid at the **National Average Energy Purchase Price (NAEPP)** — roughly **Rs 11–13 per unit** — while you keep buying grid electricity at **Rs 44–50 per unit**. That gap is the single most important number in solar economics today, and it changes how you should design and size your system.

This guide explains what NAEPP is, how it's calculated, why it can fall further, and exactly what it does to your payback period in 2026.

What Is NAEPP and Why Does It Matter?

NAEPP stands for National Average Energy Purchase Price. It is the average per-unit cost at which the Central Power Purchasing Agency (CPPA) buys electricity from all the power plants feeding the national grid. Think of it as the wholesale "energy-only" cost of generation before any of the other charges that show up on your bill.

When NEPRA introduced the net billing framework in 2026, it decided that surplus solar exported to the grid should be compensated at this wholesale benchmark — not at the retail tariff you pay. The Ministry of Energy set the new export rate at around **Rs 11.13 per unit** in late 2025, down from the roughly **Rs 25–26 per unit** existing net-metering users had been receiving.

This is the core of the "sell low, buy high" problem now facing every new solar prosumer in Pakistan.

How Is the NAEPP Rate Calculated?

The retail tariff you pay (Rs 44–50/unit for a typical unprotected domestic consumer) is built from several stacked components:

• **Energy purchase cost** — the actual fuel and generation cost
• **Capacity charges** — fixed payments to power plants for being available, whether or not they run
• **Transmission and distribution costs** — the wires, transformers, and DISCO overheads
• **Losses and margins** — line losses, theft recovery, and allowed returns

NAEPP strips almost all of this away. It reflects only the **energy (fuel) component** of generation — the marginal cost of producing one more unit. It deliberately **excludes capacity charges**, T&D costs, and DISCO margins.

The regulator's logic: when you export a unit, the grid saves only the fuel cost of not generating that unit elsewhere. It does not save its fixed capacity payments or its wire costs. So, in their view, that fuel-only value is the "fair" compensation.

Here is the practical picture:

| Component | Retail tariff (you pay) | NAEPP export rate (you earn) | |---|---|---| | Energy / fuel cost | Included | Included | | Capacity charges | Included | Excluded | | T&D and DISCO margin | Included | Excluded | | Taxes and surcharges | Included | Excluded | | Typical value (2026) | Rs 44–50 / unit | Rs 11–13 / unit |

That single table explains why a unit you send to the grid is worth roughly a quarter of a unit you draw from it.

Why the NAEPP Benchmark Resets — and Can Drop Further

NAEPP is not a fixed number written into law. It is a **benchmark that resets periodically**, and this is where the risk to your payback lies.

Because it tracks the average fuel cost of the generation fleet, NAEPP moves with:

• **Fuel prices** — global coal, LNG, and furnace-oil costs, and the PKR–USD exchange rate that prices imported fuel.
• **The generation mix** — as cheaper hydel and nuclear generation increases in the mix, the *average* fuel cost falls, which can push NAEPP **down**.
• **Regulatory review** — NEPRA can revisit the methodology itself, and there has already been political pressure to keep buyback rates low to protect the grid's finances.

The direction of travel matters. In 2026, a rise in low-fuel-cost nuclear and hydel generation, plus government intent to discourage grid export, both point toward a **flat-to-falling** NAEPP over the coming years. In short: the Rs 11–13 you earn today is not guaranteed, and prudent planning should assume it could edge lower — not higher — over your five-year agreement term.

Meanwhile, your **retail buying rate is far more likely to rise** with fuel adjustments (FCA), quarterly adjustments, and annual base-tariff revisions. So the sell-low/buy-high gap tends to widen over time, not close.

What NAEPP Does to Your Solar Payback

The old net-metering math was simple: every exported unit offset an imported unit almost 1:1, so a slightly oversized system paid back fast. Net billing breaks that logic completely.

Consider a Lahore household with a 10 kW system generating about 1,300 units a month:

• **Old net metering:** export 700 units × ~Rs 25 credit = ~Rs 17,500 offset, plus self-consumed savings.
• **New net billing:** export 700 units × Rs 12 = **Rs 8,400** only — less than half — while every imported unit still costs Rs 45+.

The lesson is decisive: **the value has moved from exporting to self-consuming.** A unit you use directly inside your home is "worth" the full Rs 44–50 you avoid paying. That same unit exported is worth just Rs 11–13. The ratio is roughly **4:1 in favour of self-consumption.**

Practical consequences for 2026 buyers:

• **Right-size, don't oversize.** A system built to dump huge surplus onto the grid no longer pays. Match generation to your daytime load.
• **Shift loads to daylight.** Run washing machines, water pumps, and EV charging while the sun is up to consume your own units.
• **Add storage.** A hybrid solar system with batteries lets you store midday surplus for evening use — capturing full retail value instead of the low NAEPP rate. Well-designed hybrids push self-consumption to 85–95%.

Even with the lower export rate, solar remains one of the best investments in Pakistan simply because grid power is so expensive. A well-sized, self-consumption-focused system in 2026 typically still pays back in **3.5 to 5 years** — the payback just now comes from **avoiding costly grid units**, not from selling cheap ones.

Frequently Asked Questions

**What does NAEPP stand for and who sets it?** NAEPP is the National Average Energy Purchase Price — the average fuel/energy cost at which CPPA buys power for the national grid. NEPRA and the Ministry of Energy adopted it as the solar export benchmark under the 2026 net billing rules.

**Why do I sell at Rs 11–13 but buy at Rs 44–50?** Because the export rate (NAEPP) reflects only the fuel cost of generation, while your retail tariff also includes capacity charges, transmission and distribution costs, taxes, and margins. The regulator argues the grid only "saves" the fuel cost when you export.

**Can the NAEPP export rate go even lower?** Yes. It resets periodically with fuel prices and the generation mix. As cheaper hydel and nuclear generation grows, the average fuel cost — and therefore NAEPP — can fall further. Plan for a flat-to-declining rate.

**Does this apply to existing net-metering users?** No. Consumers with agreements signed under the old rules continue at their previous buyback rate (around Rs 25/unit) until their contract ends. Only new applicants fall under NAEPP-based net billing. See our net metering vs net billing comparison.

**Is solar still worth it in 2026?** Absolutely — but the strategy has changed. With grid rates near Rs 50/unit, avoiding purchases through self-consumption (ideally with batteries) delivers strong returns, even though exports now earn far less.

The Bottom Line

NAEPP has redrawn solar economics in Pakistan. Exports are now a low-value bonus at Rs 11–13/unit, a benchmark that can slip lower, while grid power you buy climbs toward Rs 50. The winning move in 2026 is to build a right-sized, self-consumption-first system — and add storage where the numbers justify it.

**Want a system designed around the new NAEPP reality?** Talk to Best Solar Company PK for a free load assessment and a payback estimate built on today's real net-billing rates.

Sources: Profit by Pakistan Today — NEPRA shifts to net billing · The Express Tribune — new prosumer regulations · NEPRA tariff notifications via ebillpakistan.pk

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.