• By Best Solar Company PK
  • 20 Oct, 2026
  • Solar Policy
  • 8 min read

When the federal government floated a plan to slash the solar **net metering buyback rate** from Rs22 to Rs11.30 per unit, the backlash was immediate. On 22 October 2025, Prime Minister Shehbaz Sharif stepped in and ordered the Power Division to re-verify the numbers behind the cut — and, crucially, to establish whether the net metering contracts already signed by hundreds of thousands of homeowners can legally be revised at all. For anyone running rooftop solar in Pakistan, this review sits at the heart of your return on investment.

A year on, in 2026, the dust has settled enough to explain what the order actually set in motion, what changed, and how it affects you whether your panels are already on the roof or still in a quotation.

Why the government wanted to cut the rate

The core argument is financial. By December 2024, Pakistan had roughly **283,000 net metering consumers** with about **4,124 MW** of installed rooftop capacity — up from just 321 MW in 2021. The Power Division told the Economic Coordination Committee that these prosumers had shifted a burden of around **Rs159 billion** onto ordinary grid consumers, warning it could balloon to **Rs4.24 trillion by 2034** if left unchanged.

The reasoning: net metering let solar owners bank excess units at the full consumer tariff (around Rs22–27) while avoiding fixed capacity and transmission charges. Those costs didn't disappear — they were spread across everyone else's bills, disproportionately hitting lower-income households without solar.

The Prime Minister's message was blunt: verify the figures and the law before touching a single existing agreement — don't let a revenue fix become a trust-breaker.

What PM Shehbaz's 22 October order actually directed

The order was not an approval of the cut. It was a brake. According to Power Division briefings, the Prime Minister instructed officials to:

  • **Re-verify** the proposed drop from Rs22 to Rs11.30 per unit and the data used to justify it.
  • **Examine the legal implications** of altering buyback rates for existing contracts signed under the Net Metering Rules, 2015 — i.e. whether those agreements can be reopened without breaching contract law.
  • **Draft new standard contracts** aligned with a proposed **net billing** framework for future consumers only.
  • Run **fresh consultations** and a public communication campaign before anything was notified.

That second point — the legality of revising existing contracts — is the question that kept most solar owners awake at night.

Can existing net metering contracts be legally revised?

This is the single most important takeaway. Contracts executed under the 2015 rules were time-bound agreements (originally up to seven years), and lawyers argued that unilaterally cutting the agreed buyback rate mid-term could amount to a breach. The review was ordered precisely to avoid that exposure.

The practical outcome that followed in late 2025 drew a clear line:

  • **Existing agreements run their course** at the terms you signed, until they expire or you materially change your system.
  • **New and renewing consumers** fall under the new regime, with the lower compensation rate and shorter contract terms.

If you already have a signed net metering agreement, the honest, verified position is that your originally agreed rate is protected for the remainder of your contract — not indefinitely. Treat anything beyond that term as subject to the new rules.

Net metering vs net billing: the shift explained

By December 2025, the National Electric Power Regulatory Authority (NEPRA) had moved from debating a rate cut to replacing the mechanism itself — a shift from *net metering* to *net billing* (a gross-metering-style model). Here's the before-and-after in plain terms.

| Feature | Old net metering (2015 rules) | New net billing regime | |---|---|---| | Export rate | ~Rs22–27/unit (full tariff) | ~Rs11.30/unit (fixed buyback) | | How units settle | Exported units netted against imports | Import and export billed separately | | Standard contract term | Up to 7 years | 5 years, renewable by consent | | Licensing (≤25 kW) | Exempt | Licence now required | | Who it applies to | Grandfathered existing users | New/renewing prosumers |

The key change: you no longer swap a unit for a unit. You buy grid electricity at the full retail tariff and sell your surplus at the lower fixed rate — so self-consumption now matters far more than export.

What this means for current solar owners

If your system is already net-metered, don't panic-sell your inverter. Your contract terms were deliberately shielded by this very review. Practical steps:

  • Keep a copy of your signed agreement and note its **expiry date** — that's your protected window.
  • Avoid upgrades that trigger re-contracting unless you've modelled the new rate.
  • Shift heavy loads (AC, pumps, EV charging) to **daylight hours** to consume your own generation.

What this means for new solar buyers in 2026

New buyers should run the maths on the Rs11.30 rate, not the old Rs22. The good news: panel and inverter prices have fallen so sharply that payback is still attractive — but the winning strategy has flipped from "export everything" to "**use what you make**."

  • **Right-size** your system to your daytime load rather than maximising export.
  • Consider **battery storage** to bank solar for evening use instead of selling cheap and buying back dear.
  • Get a written, current-year quote that assumes net billing economics.

For a deeper breakdown, see our guides on net metering vs net billing in Pakistan and NEPRA's new rooftop solar rules.

Frequently Asked Questions

**What is the new net metering buyback rate in Pakistan?** For new and renewing solar consumers, the buyback rate for surplus electricity exported to the grid has been set at around Rs11.30 per unit under the net billing framework, down from roughly Rs22–27 per unit under the old net metering scheme.

**Will my existing net metering contract rate be cut?** No. PM Shehbaz's 22 October order specifically triggered a legal review to protect agreements signed under the 2015 rules. Existing contracts remain valid at their agreed terms until they expire or you materially modify your system.

**Is rooftop solar still worth it in Pakistan in 2026?** Yes, for most households and businesses. With panel prices at record lows and grid tariffs high, payback periods remain attractive — but you now maximise savings through self-consumption and storage rather than by exporting large surpluses.

**Do I need a NEPRA licence for a small solar system now?** Under the new rules, installations up to 25 kW — previously exempt — now require registration/licensing with NEPRA. Your installer or distribution company (DISCO) should handle this as part of the application.

The bottom line

PM Shehbaz's order was a reality check on a rushed tariff cut: verify the data, respect existing contracts, and reserve the lower rate for the future. The regime has since moved to net billing, but the principle protecting current owners held. If you're on solar, know your contract expiry; if you're buying in 2026, build your business case around self-consumption. Want a tailored payback estimate under the new rates? Talk to our team for a free solar assessment.

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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.