- By Best Solar Company PK
- 09 Aug, 2026
- Solar Policy
- 8 min read
If you already run rooftop solar in Pakistan, one question matters right now: will NEPRA's new rules slash the rate you earn for surplus units? The good news is that NEPRA's **net metering draft amendment** — reinforced by a direct order from the Prime Minister — is designed to protect existing users from the steep buyback cut. But the fine print still matters, and a few things could still change before the rules are finalised.
This guide breaks down exactly who stays grandfathered, what the numbers look like in 2026, and where the remaining risks lie for Pakistani homeowners and businesses.
What the NEPRA Draft Amendment Actually Does
In December 2025, NEPRA notified new regulations that shift rooftop solar from **net metering** to **net billing** (a gross-metering style model). Under the old system, the units you export are netted off the units you import at the same retail tariff. Under net billing, your exported units are bought back at a separate, lower rate — while you buy every imported unit at the full retail price.
The headline change is the buyback rate. The current rate sits around **Rs25.9 per unit**, close to the retail tariff. The proposed rate for new solar connections falls to roughly **Rs11 per unit** (a gross-metering buyback tariff of about Rs11.30). That is a cut of more than 55% on what surplus solar earns.
After a public and political backlash, NEPRA floated a **draft amendment** in early 2026 that adds a formal **grandfathering clause**. In plain terms, it carves existing solar owners out of the new regime and lets them keep their current terms until their agreements expire.
The draft amendment does not restore net metering for everyone — it protects the roughly 466,000 households and businesses who already signed up, while new applicants move to the lower net-billing rate.
Who Stays Grandfathered — and Who Doesn't
This is the part that decides your bill. The distinction is simple: **when did you get your net-metering agreement?**
- **Existing users (protected):** Anyone with a valid licence, concurrence, or agreement under the older Distributed Generation and Net Metering framework keeps their existing terms. Their 7-year agreements remain effective until the licence or contract expires, with rights and obligations unchanged.
- **New applicants (new rules):** Solar systems connected after the cut-off move to net billing, with the lower buyback rate and shorter contract length.
- **Contract length:** New agreements are capped at **5 years** (extendable by mutual consent), down from the previous **7-year** standard.
NEPRA set old rules to apply through **8 February 2026**, with the revised framework taking effect from **9 February**. So the exact date your agreement was executed is the line that separates the two regimes.
Around **466,506** solar owners were on net metering when these changes were proposed — and it is this group the government is fighting to protect.
The PM's Ordered Appeal: Why It Matters
Beyond the draft amendment, the **Prime Minister ordered the government to file a review with NEPRA** specifically to maintain existing net-metering terms for current solar owners. This is a second, parallel layer of protection.
Why does this matter if the grandfathering clause already exists? Because a draft amendment is not final law until it clears consultation and is gazetted. The PM's directive signals political will to keep existing users whole even if the regulatory text shifts. For the hundreds of thousands of families who invested lakhs of rupees in panels, inverters and batteries on the promise of a 7-year payback, that reassurance is significant.
Net Metering vs Net Billing: A Quick Comparison
Here is how the two systems stack up for a typical Pakistani prosumer in 2026.
| Factor | Net Metering (existing users) | Net Billing (new users) | |---|---|---| | Export buyback rate | ~Rs25.9/unit (near retail) | ~Rs11/unit | | Import price | Retail tariff | Retail tariff | | Contract length | 7 years | 5 years | | Unit exchange (offset) | Yes | No — separate buy/sell | | Status under draft amendment | Grandfathered until expiry | Governed by new rules |
The takeaway: existing users effectively "bank" their savings at close to retail value, while new users face a wider gap between what they pay for power and what they earn for exports.
What This Means for Your Payback
For a 10 kW home system in Lahore or Karachi costing roughly **Rs1.6–2.2 million** installed in 2026, the buyback rate directly shapes your return.
- **Grandfathered users** keep a payback close to the original 4–6 year estimate, because surplus units still sell near retail value.
- **New net-billing users** should size systems for **self-consumption first** — using solar power directly during the day — rather than exporting large surpluses at Rs11. Adding a battery to store daytime generation for evening use often beats exporting cheaply.
An original, practical tip from real installs: if you are on the fence and still eligible under favourable terms, moving quickly before your utility processes you under the new regime can lock in years of higher buyback value. Check the execution date on your agreement, not just your application date.
For deeper cost breakdowns, see our guides on solar panel prices in Pakistan and choosing the right inverter for net metering.
What Could Still Change
Nothing here is fully locked. The draft amendment is in a **30-day public consultation** window, with stakeholder feedback running into mid-March 2026. Several outcomes remain possible:
- The final buyback rate could be adjusted up or down from the proposed Rs11.
- The grandfathering language could be tightened or clarified — for example, on what happens at renewal.
- Provincial and federal pressure, plus the PM's review, could push NEPRA toward a softer landing for all users.
Because this is live policy, verify the latest notified position with NEPRA or a licensed installer before making a purchase decision. You can review the regulator's official notifications directly on the <a href="https://nepra.org.pk/" target="_blank" rel="noopener">NEPRA website</a>, and track federal energy announcements via the <a href="https://power.gov.pk/" target="_blank" rel="noopener">Power Division</a>.
Frequently Asked Questions
**Will my net metering agreement be cancelled under the new NEPRA rules?** No. The draft amendment grandfathers existing users. If you hold a valid net-metering agreement, your current terms stay in force until the contract expires — typically the remainder of your 7-year term.
**What is the new solar buyback rate in Pakistan for 2026?** For new connections under net billing, the proposed rate is roughly Rs11 per unit (about Rs11.30), down from the current ~Rs25.9 per unit. Existing users keep the higher rate.
**When did the new net billing rules take effect?** Old net metering rules applied through 8 February 2026, with the revised net-billing framework effective from 9 February 2026. The draft amendment protecting existing users is still under consultation.
**Should I install solar now or wait for the final policy?** If you value the higher buyback and can be processed under favourable terms, acting sooner can lock in better economics. Either way, size your system for daytime self-consumption so your savings hold up even if buyback rates fall.
The Bottom Line
NEPRA's draft amendment and the PM's ordered appeal together aim to keep Pakistan's 466,000+ existing net-metering users out of the Rs11 buyback cut — grandfathering their 7-year terms while new applicants move to net billing. The protection looks solid, but the policy is still in consultation, so the final numbers could shift.
Thinking about going solar or unsure which regime applies to you? **Contact Best Solar Company PK** for a free, up-to-date net-metering assessment tailored to your city and connection type.
Sources: Express Tribune — PM orders NEPRA appeal, Express Tribune — NEPRA draft amendment, Profit by Pakistan Today — net to gross metering, Dawn — Nepra pulls the plug on net-metering
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.








