PM Orders NEPRA Appeal: What It Means for Solar Buyers in 2026

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

Pakistan's rooftop solar boom just hit its biggest political test. In February 2026, NEPRA notified the Prosumers Regulations 2026, scrapping the decade-old net metering system and replacing it with net billing. Within days, Prime Minister Shehbaz Sharif took notice and directed the Power Division to file a formal appeal against the regulator's own overhaul, specifically to protect the contracts of existing solar users.

For anyone weighing a solar purchase right now, this is not abstract policy noise. The **NEPRA net metering** fight decides how much your rooftop system pays back, how long your rate is locked, and whether "existing" or "new" prosumer status is worth thousands of rupees a year. Here is what happened, what the numbers actually are, and how to decide.

What the NEPRA net-metering overhaul changed

Under the old net metering rules, your meter ran both ways. Every unit you exported was netted one-to-one against a unit you imported, effectively valuing your surplus at the full consumer tariff, often around Rs 25 to Rs 27 per unit.

The Prosumers Regulations 2026 broke that link. Net billing treats export and import as two separate transactions:

• The utility **buys** your surplus at the National Average Energy Purchase Price (NAEPP).
• The utility **sells** you grid power at the full applicable consumer tariff, including taxes and surcharges.

That single change is the whole story. Export credit fell from roughly Rs 27 per unit under the old National Average Power Purchase Price to around Rs 13 per unit under NAEPP, a cut of about 52%. Early drafts floated buyback rates as low as Rs 8.13 to Rs 11 per unit for new consumers, down from the Rs 25.9 many were used to.

The contract term also shrank from seven years to five years.

Why the Prime Minister ordered NEPRA to appeal

The political logic is about fairness and trust. Households and businesses that installed solar under net metering made a five to eight year payback calculation based on one-to-one credit. Slashing their export value overnight would blow up those numbers and punish early adopters.

So the PM directed the Power Division to appeal, arguing existing consumers must keep their original billing arrangement. NEPRA responded by floating a draft amendment and, by April 2026, confirmed that existing net metering consumers will retain their current arrangements until their contracts expire, while tighter net-billing terms apply to new applicants.

There is a critical catch buried in that relief.

Existing vs new prosumer rights: the line that costs you money

The protection for existing users is real but conditional. NEPRA restricted the benefits tied to system changes. In plain terms:

• If you keep your **existing** approved system as-is, you keep your old net metering treatment for the remainder of your contract.
• If you **expand, upgrade, or materially modify** that system, the added capacity, and potentially your whole arrangement, can be pushed onto the new net-billing rates.

That is the trap for anyone thinking "I'll install a small system now and add panels later." Under the current rules, the later expansion may not enjoy grandfathered rates.

Here is a side-by-side of where things stand in 2026.

| Factor | Old net metering | New net billing (Prosumers Regulations 2026) | | --- | --- | --- | | Export valuation | ~Rs 25 to 27 per unit (1:1 offset) | ~Rs 13 per unit (NAEPP), drafts as low as Rs 8.13 to 11 | | Import charge | Netted against exports | Full consumer tariff plus taxes | | Contract term | 7 years | 5 years | | Existing users | N/A | Grandfathered until contract expires | | System expansion | Same rate | New capacity likely on net-billing rates |

What this means if you are buying solar now

Do not let the headlines scare you out of solar. The economics still work, they just work differently. A few practical takeaways from what we see on real installs:

1. **Size for self-consumption, not export.** The old model rewarded oversizing to sell surplus. The new model rewards using your own power. Match panel capacity to your daytime load so fewer units leak to the grid at the low buyback rate. 2. **Add battery storage sooner.** When export is worth only ~Rs 13 but grid import costs the full tariff, storing daytime surplus for evening use is far more valuable than it was in 2024. Even a modest lithium battery changes the payback math. 3. **Install your full intended capacity in one go.** Because expansions risk losing grandfathered status, it is usually smarter to build the right-sized system once rather than in stages. 4. **Get your application approved before rules tighten further.** Policy is still in flux and further appeals or amendments are possible. Locking in an approved connection now protects your position.

You can read our related breakdown on net metering vs net billing in Pakistan and our guide to choosing the right solar system size before you commit.

For the official regulatory position, check the source documents on the NEPRA website and background on the sector from the Alternative Energy Development Board so you are working from primary data, not rumor.

The bottom line for 2026 buyers

Solar in Pakistan is still one of the fastest hedges against rising grid tariffs, which is precisely why so many households and businesses adopted it. The **NEPRA net metering** appeal shows the government understands that credibility matters: existing users are being protected, and the policy is being contested rather than rammed through. For new buyers, the message is to design smarter, prioritize self-use and storage, and act while approvals are straightforward.

Frequently Asked Questions

**Does the PM's directive cancel NEPRA's new net-billing rules?** No. The new Prosumers Regulations 2026 stay in force. The Prime Minister's appeal specifically targets protection for existing solar users, and NEPRA has confirmed those consumers keep their current arrangement until their contract expires.

**What is the difference between net metering and net billing?** Net metering offsets your exported units one-to-one against imported units at the full tariff. Net billing pays you a lower wholesale rate (around Rs 13 per unit under NAEPP) for exports while charging you the full consumer tariff for the power you draw from the grid.

**Will my existing solar system be moved to the new rates?** Not automatically. Existing approved systems are grandfathered for the rest of their contract. However, if you expand or significantly modify the system, the added capacity is likely to fall under the new net-billing terms.

**Is it still worth installing solar in Pakistan in 2026?** Yes. With grid tariffs high and climbing, self-consumption savings remain strong. The key is to size your system to your own usage and consider a battery so you rely less on the reduced export rate.

Thinking about going solar before the rules shift again? Talk to the team at Best Solar Company PK for a free system assessment and a payback estimate built on the latest 2026 policy.

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.