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

If you already have solar panels on your roof, or you are about to install them, one clause in Pakistan's new solar rules matters more than any other: **net metering grandfathering only lasts until your contract expires.** After that, your distribution company (DISCO) is legally authorised to terminate the agreement or move you onto the far less generous net billing regime.

This is the single biggest reason thousands of Pakistani homeowners are rushing to lock in a net metering agreement in 2026. Let's break down exactly what "contract expiry" means, what you stand to lose, and why the maths still favours acting now.

What actually changed in 2026

In February 2026, NEPRA notified the **Prosumer Regulations, 2026**, which formally replaced the old net metering framework built under the 2015 rules. The headline shift is from *net metering* to *net billing*.

  • **Net metering (old):** Every unit you exported offset a unit you imported, roughly 1:1. Your export was effectively valued at the retail tariff — around **Rs 25–27 per unit**.
  • **Net billing (new):** You buy grid electricity at the full retail rate (which can reach **Rs 50+ per unit** at peak slabs) but sell your surplus at the National Average Energy Purchase Price — reported at roughly **Rs 8–11 per unit**.

That gap is enormous. Under net billing, exporting surplus power is worth less than half of what it was, so the economics now reward using your own solar power during the day rather than dumping it to the grid.

The value of a single exported unit fell from about Rs 25 to as little as Rs 8–11 — a cut of more than 60% for anyone forced onto net billing.

What "grandfathering" really protects — and for how long

NEPRA did soften the blow for existing users. If you signed a net metering agreement under the 2015 regulations, that contract is **grandfathered** — honoured on its original terms until the day it expires.

Here is the catch most people miss. Those legacy agreements were issued for a **7-year term**. Grandfathering does not mean "forever." It means "until year seven." New contracts signed today run for only **5 years**.

When your term ends, the regulations hand your DISCO two options:

1. **Terminate** the net metering agreement outright, or 2. **Shift** you onto the prevailing net billing framework and its lower export rate.

A 5-year extension is theoretically possible, but the rules make it **subject to the DISCO's willingness** — it is not an automatic right. Given the grid pressures pushing this whole reform, banking on a renewal at old rates would be optimistic.

Why locking in now still makes financial sense

Every month you delay is a month of lower electricity bills you never recover. And crucially, agreements executed while the current framework applies start your protected clock at the more favourable terms. Consider the numbers for a typical home system in 2026:

| Factor | Existing net metering user | New net billing user | |---|---|---| | Export value per unit | ~Rs 25 | ~Rs 8–11 | | Contract term | 7 years | 5 years | | Import (buy) rate | Up to ~Rs 50/unit | Up to ~Rs 50/unit | | Settlement | Offset against import | Cash-credited at low rate | | Best strategy | Export freely | Maximise daytime self-use |

A standard **10 kW residential system** costs roughly **PKR 1,400,000–1,750,000** installed. With good daytime consumption, annual savings land around **PKR 420,000–520,000**, giving a payback period of about **3.5–4.5 years**. If you secure your agreement now, you lock those savings in against a backdrop where export values are only expected to fall further. See our rooftop solar payback breakdown for a full worked example.

The one design change everyone must plan for

Under the 2026 rules, your system size **cannot exceed your sanctioned load**. Oversizing to bank huge exports — the old game — no longer pays, because those exports earn the low net billing rate anyway.

The smart 2026 design is different:

  • **Right-size the array** to your sanctioned load and daytime demand.
  • **Shift heavy loads to daylight hours** — run the AC, pump, washing machine and iron between roughly 9am and 4pm.
  • **Consider battery storage** so evening consumption comes from stored solar rather than Rs 50/unit grid power.

This "self-consumption first" approach protects your savings whether you stay on net metering or eventually get moved to net billing. Our guide to choosing the right solar system size walks through matching panels to your load.

What to do before your contract expires

Practical, first-hand advice from installations we have completed across Punjab and Sindh this year:

1. **Find your expiry date.** Check your original net metering agreement and note the exact 7-year end date. 2. **Diarise a reminder 6–9 months ahead.** That is when to formally request an extension and prepare a fallback plan. 3. **Get the request in writing.** Ask your DISCO in writing about renewal terms so you have a record. 4. **Add storage before expiry** if your evenings are grid-heavy — it future-proofs you against a net billing shift. 5. **If you are not yet solar, act this year.** A 2026 agreement is more valuable than a 2028 one.

For the full mechanics of the new regime, read our explainer on how NEPRA net billing works.

You can also verify the framework directly through NEPRA, Pakistan's power-sector regulator, and the Alternative Energy Development Board for renewable policy updates.

Frequently Asked Questions

**Does grandfathering mean my net metering rate is safe forever?** No. Grandfathering protects your original terms only until your contract expires. For legacy 2015-era agreements that is a 7-year term, after which the DISCO can terminate the deal or move you to net billing.

**Can a DISCO really cancel my net metering agreement?** Yes. Under the Prosumer Regulations 2026, once your term ends the DISCO is authorised to either terminate the agreement or shift you onto the current net billing framework. A 5-year extension exists but depends on the DISCO's willingness, not an automatic entitlement.

**How much lower is the net billing export rate?** Sharply lower. Where net metering valued exports near the retail tariff of about Rs 25 per unit, net billing pays the National Average Energy Purchase Price of roughly Rs 8–11 per unit — a cut of more than half.

**Is it still worth installing solar in Pakistan in 2026?** Absolutely. Even under net billing, a right-sized system with strong daytime self-consumption pays back in around 3.5–4.5 years, because you avoid grid power costing up to Rs 50 per unit. Locking in a net metering agreement now simply improves those returns further.

The bottom line

Grandfathering is real relief, but it is a countdown, not a guarantee. When your net metering contract expiry arrives, the decision is your DISCO's — and the rules now let them terminate or downgrade you to net billing. The families who win are the ones who secure their agreement early, size their system to their own load, and start consuming their sunshine directly.

**Ready to lock in before the rules tighten further?** Talk to Best Solar Company PK for a free load assessment and a net-metering-ready design built for 2026 and beyond.

Sources: Express Tribune, Dawn, Profit by Pakistan Today, pv magazine

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.