PM Orders NEPRA to Review Net-Billing Rules: Should You Install Solar Now or Wait in 2026?

• By Best Solar Company PK
• 31 Jul, 2026
• Solar Policy
• 7 min read

Pakistan's rooftop solar boom just hit its biggest policy speed bump yet. In February 2026, NEPRA (the National Electric Power Regulatory Authority) replaced the old one-to-one net metering system with a far less generous **net-billing** framework under the Prosumer Regulations 2026. Within days, Prime Minister Shehbaz Sharif publicly took notice and directed the Power Division to file a review appeal before NEPRA to protect existing solar users. Through mid-2026, that review remains the single biggest question hanging over every homeowner and business weighing a solar investment.

So could the old net metering terms actually be restored — and if you're a Pakistani buyer, do you install now or wait for the dust to settle? Let's break down exactly what changed, what the PM's intervention can realistically achieve, and the numbers that should drive your decision.

What NEPRA's net-billing rules actually changed

Under the 2015 net metering regime, every unit you exported to the grid offset a unit you imported — a clean one-to-one swap, effectively banking your daytime surplus at the full retail tariff. The Prosumer Regulations 2026 ended that.

The headline changes:

• **Buyback rate slashed:** Exported solar units are now bought at roughly **Rs 11 per unit** (tied to the National Average Energy Purchase Price), down from around **Rs 21–27** under the old netting arrangement.
• **You still buy at full retail:** Imported units are billed at your normal tariff of roughly **Rs 40–50 per unit**. Exports and imports are no longer netted one-to-one — they're settled separately.
• **Five-year contracts** replace the earlier long-term agreements for new connections.
• **A licensing fee of Rs 1,000 per kW** was added in April 2026, so a 10 kW system now carries an extra Rs 10,000 charge.

Crucially, **existing consumers are grandfathered.** Anyone holding a valid net metering agreement as of 9 February 2026 keeps their old terms until the contract expires. Regulators confirmed that about **5,165 applications (some 250.8 MW)** submitted before 8 February 2026 would still be processed under the old policy.

Why PM Shehbaz ordered NEPRA to review the rules

The backlash was immediate — from the PPP, the PTI, energy experts and hundreds of thousands of prosumers. PM Shehbaz directed the Power Division to file a review appeal "to ensure every possible safeguard of the existing consumer contracts."

His stated concern cut to the political core of the issue: the "burden of 466,000 users benefitting from solar should not be put on 37.6 million domestic consumers" drawing power directly from the grid. In other words, the government wants to slow the shift of fixed grid costs onto ordinary bill-payers — without punishing families who already invested in panels in good faith.

The Power Division's review petition asked NEPRA to let distribution companies (DISCOs) keep operating the **repealed net metering mechanism for valid-license holders until a final decision** is reached. NEPRA subsequently invited public comment on an amendment intended to clarify protections for existing distributed generators. You can track official notifications directly on the NEPRA website.

Could net metering terms be restored?

Realistically, a full return to 1:1 net metering for *new* installations is unlikely. NEPRA's direction of travel — reducing the cross-subsidy — mirrors what regulators across South Asia and beyond have done as rooftop solar scaled up. What the review *can* plausibly deliver:

• **Firmer protection for existing contracts**, so grandfathered users aren't force-migrated early.
• **A revised buyback rate** somewhere above Rs 11 if the appeal succeeds partially.
• **Clarified, longer contract terms** or transition provisions for pending applicants.

Treat a wholesale reversal as the best case, not the base case. For a deeper look at how the transition affects current users, see our guide on how net billing changes your solar savings.

Net metering vs net billing: the numbers

| Factor | Old net metering (pre-Feb 2026) | New net billing (2026 rules) | | --- | --- | --- | | Export value | ~Rs 21–27/unit (1:1 offset) | ~Rs 11/unit buyback | | Import cost | Rs 40–50/unit | Rs 40–50/unit | | Settlement | Units netted directly | Import & export billed separately | | Contract term | Long-term | 5 years (new connections) | | Licensing fee | None | Rs 1,000/kW (from April 2026) | | Typical payback* | ~2.5–3.5 years | ~4–6 years |

*Payback depends heavily on how much solar you consume yourself versus export.

Should you install solar now or wait?

Here's the original insight most buyers miss: **the biggest saving from solar was never the export cheque — it's the import you avoid.** Every unit you generate and use on the spot saves you Rs 40–50, regardless of whether the buyback rate is Rs 27 or Rs 11. Net billing only devalues the *surplus* you push to the grid.

That reframes the whole "now or wait" question:

• **Install now if** your daytime usage is high (offices, shops, work-from-home households, homes with daytime AC). Size the system to your own consumption, add a **battery** to store surplus instead of exporting it cheaply, and your economics barely change.
• **Consider waiting only if** your household is empty all day and you were banking almost entirely on generous exports — that model is what net billing broke.

Given that electricity tariffs keep climbing, delaying to chase a policy reversal that may never come often costs more in inflated bills than it saves. A practical middle path: install a right-sized system now with battery-ready inverters, and lock in today's contract terms before further tightening. For sizing help, read our solar system sizing guide for Pakistani homes.

Frequently Asked Questions

**Does NEPRA's net-billing rule affect my existing net metering agreement?** No. If you held a valid net metering agreement as of 9 February 2026, you keep your original terms until that contract expires. After expiry, your DISCO can either renew, terminate, or move you to the net-billing framework.

**What is the new solar buyback rate in Pakistan in 2026?** Exported units are purchased at roughly Rs 11 per unit under net billing, versus around Rs 21–27 previously. You still buy grid electricity at the full retail tariff of about Rs 40–50 per unit.

**Will the PM's review appeal restore old net metering?** It's aimed mainly at protecting existing contracts and softening the terms, not guaranteeing a full return to 1:1 net metering for new users. As of mid-2026 the review is ongoing, so a partial improvement is more likely than a complete reversal.

**Is installing solar still worth it under net billing?** Yes — for most homes and businesses. Your largest saving comes from self-consumption (avoiding Rs 40–50/unit imports), not exports. Pairing panels with a battery and sizing to your own load keeps solar highly profitable even at the lower buyback rate.

The bottom line

NEPRA's shift to net billing genuinely reduced the value of exported solar, and PM Shehbaz's ordered review is a welcome effort to protect the roughly 466,000 households and businesses that invested early. But betting your decision on a rule reversal is risky — the smarter move is to design a solar system around self-consumption and storage, where the NEPRA net-billing rules barely dent your returns.

Want a system sized for the 2026 rules, not the 2015 ones? Get a free, no-obligation solar quote from Best Solar Company PK and we'll model your exact payback under current net-billing terms.

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.