NEPRA's Rs1,000/kW Net-Metering Fee: What It Really Adds to Your Solar Cost in 2026

• By Best Solar Company PK
• 01 Aug, 2026
• Solar Policy
• 8 min read

For years, applying for net metering in Pakistan cost you almost nothing beyond your solar hardware. That changed in 2026. Under the new **NEPRA net metering** framework, the regulator scrapped the old free setup and introduced a **Rs1,000 per kW one-time application fee** as part of the NEPRA (Prosumers) Regulations 2026, effective 9 February 2026.

If you searched this topic worried that a rooftop system just got a lot more expensive, take a breath. The reality is more nuanced — and for most homeowners, far cheaper than the headlines suggest. Let's break down exactly who pays the fee, who is now exempt, and what it genuinely adds to your installation cost this year.

What NEPRA actually changed in 2026

In February 2026, NEPRA restored net metering for existing prosumers and rolled out new rules for **net billing**. Bundled into those rules was a licensing requirement plus a **Rs1,000/kW one-time fee** for solar consumers — the change critics quickly labelled "taxing sunlight."

The backlash was immediate. Within days, the Power Division directed NEPRA to roll it back for small consumers. On 28 April 2026, NEPRA formally withdrew the licence requirement and the Rs1,000/kW fee for systems **up to 25 kW**, under Schedule IV and Regulation 4(2)(b) of the Prosumers Regulations.

That single threshold is the most important fact in this whole debate — and it's the part most viral posts leave out.

Who pays the Rs1,000/kW fee — and who doesn't

Because the fee is tied to system size, its real impact depends entirely on your load. Here's how it shakes out:

• **Homeowners (typically 5–15 kW):** Exempt. Almost every residential rooftop in Pakistan falls under the 25 kW ceiling, so you pay no application fee.
• **Small businesses and shops (up to 25 kW):** Also exempt.
• **Large commercial, industrial, and agricultural users (above 25 kW):** Pay the Rs1,000/kW one-time fee at the application stage.

So the "free net metering is dead" framing is only half true. For the vast majority of household applicants, the setup is still free. Larger prosumers now shoulder a modest one-time cost.

What the fee actually adds to your installation cost

Let's put real PKR numbers on it. The fee is a **one-time** charge, not a recurring bill, and it's calculated on your sanctioned system size.

| System size | Who it fits | Rs1,000/kW fee | Rough system cost (2026) | Fee as % of total | |---|---|---|---|---| | 10 kW | Large home | Rs 0 (exempt) | Rs 950,000–1,200,000 | 0% | | 25 kW | Big villa / small shop | Rs 0 (exempt) | ~Rs 2,300,000 | 0% | | 30 kW | Commercial unit | Rs 30,000 | ~Rs 2,800,000 | ~1.1% | | 50 kW | Factory / farm | Rs 50,000 | ~Rs 4,600,000 | ~1.1% | | 100 kW | Industrial rooftop | Rs 100,000 | ~Rs 9,000,000+ | ~1.1% |

Even for a 100 kW industrial installation, the fee lands near 1% of the total project cost. It's a real line item on your quotation, but it is not the budget-breaker some feared. For context, the 18% Federal Excise Duty on imported solar panels (effective July 2025) added far more to prices than this application fee ever will.

The change that actually hurts your payback

Here's the honest, first-hand insight from working with Pakistani clients: the Rs1,000/kW fee is a footnote. The change that genuinely moves your numbers is the **buyback rate cut**.

In 2025, the Economic Coordination Committee slashed the surplus-export rate from **Rs27 per unit to around Rs10 per unit**, pegged to the National Average Power Purchase Price, with net-metering contracts now capped at **five years** and periodic revisions. New applicants also move toward a **net-billing** model, where imported and exported units are settled separately rather than simply netted off.

That reform stretches payback periods and rewards *self-consumption* far more than exporting to the grid. Practically, it means sizing your system to match your own daytime usage — and considering a hybrid battery setup — matters more than ever. Read our full breakdown of the net metering vs net billing rules in Pakistan before you finalise your design.

How to keep your net-metering cost low in 2026

Based on real installations we've completed, here's practical advice:

• **Stay at or under 25 kW where feasible** to keep your application fee at zero. Most homes never need more.
• **Right-size for self-use.** With buyback at ~Rs10/unit, consuming your own solar is worth 2–3× more than exporting it.
• **Get a turnkey quote.** Reputable installers now bundle the green meter, NEPRA/DISCO application, and documentation — so the fee (if any) is transparent, not a surprise. See how to choose the right solar system size for your home.
• **Budget for the meter and paperwork**, not just panels. The bidirectional meter and DISCO processing remain the main non-hardware costs.

For the wider picture on export tariffs, see our guide to the NEPRA buyback rate changes for 2026.

Frequently Asked Questions

**Does every solar owner in Pakistan now pay the Rs1,000/kW NEPRA fee?** No. As of 28 April 2026, NEPRA waived the fee for systems up to 25 kW. Only systems larger than 25 kW pay the Rs1,000 per kW one-time application fee.

**Is the Rs1,000/kW fee a monthly or one-time charge?** It is a one-time application fee charged when you apply, not a recurring monthly cost. A 30 kW system pays Rs30,000 once.

**Do existing net-metering consumers have to pay anything new?** Existing prosumers with valid agreements under the older 2015 regulations keep their contractual terms until those agreements expire. The new fee and buyback changes primarily affect fresh applications.

**What hurts my solar savings more — the fee or the buyback cut?** The buyback cut. Dropping the export rate from Rs27 to roughly Rs10 per unit affects your payback far more than a one-time fee that is under 1.5% of most project costs.

The takeaway

Yes, NEPRA scrapped the old free-for-all and introduced a **Rs1,000/kW net-metering fee** in 2026 — but for the typical Pakistani homeowner under 25 kW, the setup is still free. The fee only touches larger systems, and even then adds barely 1% to the bill. The real planning challenge is the lower buyback rate, which rewards smart sizing and self-consumption.

Thinking about going solar this year? Get a transparent, all-inclusive quote from **Best Solar Company PK** so you know your exact net-metering cost — fee, meter, and paperwork included — before you commit.

*Sources: NEPRA waives fees on net metering up to 25 kW — Business Recorder, Nepra abolishes licence requirement, fee for small solar users — Dawn, ECC approves net-metering amendments, buyback set at Rs10 — Profit by Pakistan Today.*

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.