- By Best Solar Company PK
- 08 Aug, 2026
- Net Metering
- 8 min read
Pakistan's rooftop solar boom is running into a policy wall. As winter arrives and national power demand slips, the government has revived a plan to slash the **net metering** buyback rate from Rs22 per unit to roughly Rs11.30 — nearly a 50% cut. If you have been waiting to go solar, this is the moment to understand what is changing, why winter demand is the trigger, and whether locking in your application now can protect the older, more generous rate.
This guide breaks down the numbers in PKR, explains the shift from net metering to gross metering, and gives you a clear, practical decision framework for 2026.
Why Falling Winter Demand Triggered a Fresh Review
Electricity demand in Pakistan is seasonal. In summer, air-conditioning pushes grid consumption to its peak. In winter, demand falls sharply — this year by around 3.3% year-on-year. Lower demand means the grid needs less power, yet rooftop solar systems keep pumping surplus units into the network during sunny daytime hours.
That mismatch is the heart of the problem. Distribution companies (DISCOs) must buy this surplus at Rs22 per unit under existing net metering rules, then struggle to use it when overall demand is soft. According to the Power Division, the rapid growth of net-metered solar caused a drop of roughly **3.2 billion units** in grid electricity sales during FY2024, translating into an estimated **Rs101 billion** revenue loss for DISCOs.
The core argument: solar prosumers are being paid a premium rate, while the cost is quietly shifted onto non-solar consumers through higher tariffs — reportedly up to Rs2 per unit.
At a high-level meeting on 22 October 2025, the Power Division formally proposed cutting the buyback rate to Rs11.30 and tasked NEPRA with validating it. By December 2025, NEPRA had gone further, floating a draft framework to move new rooftop solar users from **net metering** to **gross metering** entirely.
Net Metering vs Gross Metering: What Actually Changes
Understanding this difference is critical before you decide.
Under **net metering**, your meter runs both ways. You only pay for the *net* electricity you draw from the grid — your solar exports are subtracted from your imports at the same retail value. This is why net metering has been so financially attractive.
Under **gross metering**, every unit your panels export is sold to the DISCO at a fixed low rate (Rs11.30), while every unit you consume from the grid is bought back at the full retail tariff — which can exceed Rs40–60 per unit in higher slabs. You lose the unit-for-unit exchange advantage.
| Feature | Net Metering (current) | Gross Metering (proposed) | |---|---|---| | Export buyback rate | Rs22 per unit | Rs11.30 per unit | | Unit exchange | Yes (offset imports) | No (all export sold separately) | | Agreement term | 7 years | 5 years (extendable) | | Best for | Daytime + evening users | Heavy daytime self-use | | Payback period | ~3–5 years | Longer (5–7+ years) |
The practical takeaway: gross metering rewards **self-consumption**. The more solar power you use directly during the day, the less the low export rate hurts you.
The Grandfather Clause: Why Locking In Matters
Here is the single most important detail for anyone on the fence.
Existing net metering consumers who already hold valid **seven-year agreements** are protected. They will continue to sell surplus electricity at **Rs22 per unit until their contracts expire** — even after new rules take effect. This "grandfathering" is the reason locking in your application before the cut is so valuable.
If your system is approved and your agreement signed under the current regime, you effectively secure Rs22 pricing for the full contract term. Apply after the switch to gross metering, and you are locked into Rs11.30 with no unit exchange — for a shorter five-year term.
For a typical 10 kW residential system in Lahore or Karachi exporting, say, 400 surplus units a month, the gap is real:
- At Rs22/unit: about **Rs8,800/month** in export value
- At Rs11.30/unit: about **Rs4,520/month** in export value
- Difference: roughly **Rs4,280/month**, or **Rs51,000+ a year**
Over a multi-year term, that difference can amount to hundreds of thousands of rupees — often a meaningful slice of your total system cost, which for quality 10 kW on-grid setups currently runs around **Rs1.6–2.2 million** installed.
Should You Lock In Before the Next Cut?
Rushing a solar decision is never wise, but the policy signal is clear. If you were already planning to install this year, delaying offers no upside and real downside. Consider locking in now if:
- You are financially and technically ready to install within the next few months.
- Your monthly bills are high (heavy summer AC load) and payback economics are strong.
- You want the security of a longer seven-year agreement at Rs22.
Be more cautious if you are financing on tight margins, your roof needs major work first, or your consumption is mostly at night (where solar offsets less). In those cases, sizing your system for **maximum daytime self-use** — rather than large exports — future-proofs you against either outcome.
A practical first-hand tip from installations across Punjab: undersizing slightly and adding a small **battery or hybrid inverter** often beats oversizing for export. As buyback rates fall, storing your own daytime generation for evening use protects more value than selling it cheaply to the grid.
For a deeper cost breakdown, see our guide to solar panel prices in Pakistan and how to choose the right inverter for net metering.
What to Do Next
1. Confirm your DISCO (LESCO, K-Electric, IESCO, etc.) is currently accepting net metering applications under the Rs22 regime. 2. Get a load assessment and quotation from a reputable, AEDB-certified installer. 3. Submit your application and complete the agreement before any gross metering notification takes effect. 4. Keep documentation of your approval date — this is your proof of grandfathered pricing.
The window is not infinite. Once NEPRA finalizes the shift, new applicants default to gross metering at Rs11.30. Acting decisively — but with a properly sized system — is the smartest hedge.
Frequently Asked Questions
**Is net metering being abolished in Pakistan?** Not for existing users. NEPRA has proposed moving *new* rooftop solar consumers to gross metering, but current net metering consumers with valid seven-year agreements keep their Rs22 per unit rate until those agreements expire.
**What is the new net metering rate in Pakistan?** The proposed buyback rate for new solar exports under gross metering is Rs11.30 per unit, down from the Rs22 per unit currently paid under net metering. The change is still being finalized by NEPRA as of 2026.
**Will my Rs22 rate be protected if I apply now?** Yes. If your net metering agreement is approved and signed under the current regime, you are grandfathered — you continue selling surplus at Rs22 per unit for the seven-year term, even after new rules apply to later applicants.
**Does gross metering make solar unprofitable?** No, but it changes the math. Solar still cuts your bills sharply through self-consumption. Under gross metering, systems sized for daytime self-use — often paired with a battery — deliver the best returns rather than relying on grid exports.
Falling winter demand has handed regulators the argument they needed to cut the **net metering** rate. If solar is already in your plans, locking in your application at Rs22 before the shift to Rs11.30 could protect years of savings. Talk to a certified installer at Best Solar Company PK today and secure your rate while the window is open.
Sources: Profit by Pakistan Today — Rs11.30 proposal, Profit — NEPRA gross metering shift
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.








