• By Best Solar Company PK
  • 23 Sep, 2026
  • Solar Policy
  • 8 min read

On **September 29, 2026**, the National Electric Power Regulatory Authority (NEPRA) will hold a public hearing on the Central Power Purchasing Agency's (CPPA-G) request for a **Rs1.73 per unit** increase in electricity prices. The hearing starts at 2pm at NEPRA Tower in Islamabad and runs online as well. For Pakistani homeowners and businesses weighing solar, this NEPRA hearing is not background noise — it directly reshapes your solar payback math, and the direction is clear.

If you have been on the fence, the short version is this: every approved tariff hike shortens the time it takes for a solar system to pay for itself. Here is what the Rs1.73/unit request means in concrete PKR terms, and why 2026 is arguably the most urgent year yet to lock in your numbers.

What CPPA is actually asking for on September 29

The request is a **Fuel Charges Adjustment (FCA)** for August 2026 — a monthly true-up that lets power companies recover the gap between the fuel cost they charged consumers and what they actually paid.

  • Consumers were billed a **reference fuel cost of Rs7.0998/unit**.
  • The **actual fuel cost came to Rs8.8265/unit**.
  • The Rs1.7267 gap is what CPPA-G wants to pass through, rounded to **Rs1.73/unit**.

Per the petition filed on behalf of the ex-WAPDA distribution companies (XWDISCOs), the pass-through would add roughly **Rs29.5 billion** to consumer bills in the applicable month. The adjustment would also apply to **K-Electric** customers in Karachi. So whether you are in Lahore, Faisalabad, Multan, or Karachi, this hearing touches your bill.

A single FCA looks small on paper — under two rupees a unit. But FCAs stack on top of the base tariff, quarterly adjustments, and taxes. That stacking is exactly what has pushed effective household rates far above the "headline" tariff.

It is worth being precise: the Rs1.73/unit figure is a **fuel adjustment**, not a permanent base-tariff change. It typically applies for a single billing month. But these adjustments arrive month after month, and Pakistan's power generation cost reportedly **jumped 37.6%** year-on-year in the latest data — so the pressure is structural, not a one-off.

Where your real electricity rate stands in 2026

Understanding solar payback starts with your true per-unit cost — not the base tariff. In January 2026, NEPRA set the national average uniform tariff near **Rs33/unit**, but once FCAs, quarterly tariff adjustments, and general sales tax are layered in, most unprotected residential and commercial consumers are effectively paying **Rs40–55/unit**.

Here is roughly what different consumers face:

| Consumer type | Effective rate (2026) | Impact of a Rs1.73/unit FCA | |---|---|---| | Protected residential (≤200 units) | Rs10–13/unit | Minimal; largely shielded | | Unprotected residential (high slab) | Rs45–55/unit | ~Rs1,730 more per 1,000 units | | Commercial | Rs45–60/unit | Directly raises operating cost | | Industrial | Rs40–50/unit | Erodes margins on every shift |

If you run a shop, a small factory, or a household consuming more than 300–400 units a month, you are firmly in the band where solar delivers the fastest returns — and each NEPRA-approved hike widens that advantage.

How another hike shortens solar payback

Solar payback is simple arithmetic: **system cost ÷ annual savings**. Tariff hikes increase the "savings" side, so payback shrinks.

A typical **10kW on-grid system** in Pakistan costs about **PKR 950,000–1,200,000** installed (around Rs34–45 per watt) and generates roughly **1,140–1,200 units per month**, or about **13,500 units a year**.

  • At **Rs45/unit**, that output offsets about **Rs607,500/year** — payback around **1.7–2 years**.
  • Add the Rs1.73/unit FCA (self-consumed units you no longer buy from the grid), and your annual saving climbs by roughly **Rs23,000+**, trimming payback further.
  • Every future FCA or base-tariff revision repeats this effect.

The critical nuance in 2026 is *where* the savings come from. Since NEPRA moved from **net metering to net billing** (effective February 9, 2026), the economics have shifted toward **self-consumption**, not export. We break this down in our guide to net billing vs net metering in Pakistan.

The net billing factor: self-consumption is now king

Under the old net-metering regime, exported units were swapped one-for-one against imported units — effectively giving you the full retail tariff for your surplus. That is gone for new consumers.

Under the **Prosumer Regulations 2026**:

  • **New solar consumers** export surplus at a buyback rate of roughly **Rs8.13/unit** — down sharply from before.
  • **Existing net-metering users** are grandfathered and continue at their older rate (around **Rs25.32/unit**) until their agreements expire.
  • All imported units are charged at the full prevailing tariff, slab by slab.

The practical takeaway: the money is in the units you **use yourself** and never buy from the grid at Rs45–55/unit — not in the units you sell back at Rs8. When another FCA like the Sept 29 request is approved, the value of every self-consumed solar unit rises, while the value of exported units stays flat. That makes **right-sizing** your system to your daytime load — and considering **hybrid systems with battery storage** to shift solar into evening hours — the smartest 2026 strategy. See our solar system sizing guide for Pakistani homes.

What you should do before and after the hearing

You cannot control NEPRA's decision, but you can position yourself:

1. **Audit your last 6 bills.** Find your true effective per-unit rate, including FCA and taxes — that is your real payback benchmark. 2. **Prioritise self-consumption.** Size the system to cover daytime load first; over-sizing purely to export makes little sense under net billing. 3. **Lock pricing now.** Panel and inverter prices are relatively soft in 2026 (Rs34–45/watt), but the rupee and import duties can move quickly. 4. **Get your net-billing meter application in early.** Approvals and DISCO processing take time; starting now protects you from further rate erosion.

For official rules and tariff notifications, always cross-check the primary sources: NEPRA's official website and the Alternative Energy Development Board (AEDB).

Frequently Asked Questions

**Will the Rs1.73/unit hike be permanent?** No. This is a Fuel Charges Adjustment for August 2026, so it typically applies to a single billing month. However, FCAs recur monthly, and Pakistan's rising generation costs mean similar adjustments are likely to keep appearing — the long-term trend for grid tariffs is upward.

**Does this hike make solar worth it in 2026?** For unprotected households and commercial or industrial users paying Rs40–55/unit, yes — payback on a well-sized on-grid system is already around 1.7–2.5 years. Each approved hike shortens that further because your self-consumed units offset an ever-higher grid rate.

**How does net billing change my solar payback compared to old net metering?** Under net billing, surplus you export earns only about Rs8.13/unit instead of near-retail value. Payback now depends on how much solar you consume directly rather than sell back, so systems matched to your daytime usage (and hybrids with batteries) pay off fastest.

**Are existing solar owners affected by the Sept 29 hearing?** The FCA affects your grid-import charges like any consumer, so your imported units cost more. But existing net-metering users keep their older, higher buyback rate under grandfathering, which continues to protect the value of their exports.

**Where can I confirm the final approved rate?** NEPRA publishes its decision after the hearing on its official website, and your DISCO reflects the approved FCA as a separate line item on your bill. Always verify against the NEPRA notification rather than social media figures.

The bottom line

The September 29 hearing is one more step in a clear, multi-year pattern: grid electricity in Pakistan keeps getting more expensive, while solar hardware stays affordable. Whether NEPRA approves the full Rs1.73/unit or trims it, the direction of travel rewards anyone who generates their own power. With net billing making self-consumption the priority, the best move is to size a system to your load and act before the next adjustment lands.

**Ready to run your own payback numbers?** Get a free, no-obligation solar assessment from Best Solar Company PK and see exactly how many months it takes for your system to pay for itself at today's rates.

**Sources:**

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.