PM Orders NEPRA to Re-Verify the Rs11 Solar Buyback Rate — It's Not Final Yet

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

If you have been holding off on solar because of the headlines about a slashed buyback rate, there is important news. On **October 22, 2026**, Prime Minister Shehbaz Sharif directed the Power Division and NEPRA to **re-verify the proposed Rs11 solar buyback rate** and assess its wider impact before the prosumer reform is finalized.

In plain terms: the cut that worried so many households is **not locked in yet**. The solar buyback rate is back under formal review, and that pause changes the math for anyone deciding whether to install now or wait.

This article breaks down what the directive actually said, what the numbers are today, and the practical move for homeowners and businesses in 2026.

What the Rs11 solar buyback rate controversy is about

For years, Pakistan ran a **net-metering** system. Your rooftop system offset your consumption unit-for-unit, and surplus units exported to the grid were credited at a generous rate. Existing net-metering consumers on valid seven-year agreements still sell surplus power at **Rs22 per unit**.

The Power Division proposed cutting the buyback rate for new solar consumers from that Rs22 level down to roughly **Rs11.30 per unit** — alongside a broader shift from net metering to **net billing** (also described as gross metering) under the draft NEPRA Prosumer Regulations.

The official rationale: with rooftop solar expanding fast, the regulator argues that the old rates shift an estimated burden of up to **Rs2 per unit** onto non-solar grid consumers who are mostly lower-income households.

What PM Shehbaz's October 22 directive actually orders

During the meeting, the Prime Minister took notice of the delay in approving the summary and instructed officials to move carefully rather than rush the cut. The directive has three practical parts:

• **Re-verify the rate.** The Power Division and NEPRA must independently confirm whether Rs11 per unit is the correct, defensible number.
• **Assess system-wide impact.** Officials must study how the change affects solar adoption, investor confidence, the local solar industry, and the grid before reforms are introduced.
• **Don't finalize prematurely.** The reform is explicitly paused for verification, not signed into force.

This matters because a directive to "re-verify and assess impact" is a signal that the final rate could land **differently** from the Rs11 proposal — higher, phased, or structured to protect smaller systems.

The numbers that matter right now

Here is a clear snapshot of where the solar buyback rate stands as the review proceeds. Figures are in Pakistani rupees per exported unit (kWh).

| Category | Rate / Status | Notes | |---|---|---| | Existing net-metering users (valid agreement) | **Rs22/unit** | Honored until the 7-year contract expires | | Earlier reference buyback rate | **~Rs26/unit** | Pre-reform benchmark often cited | | Proposed new buyback rate | **~Rs11.30/unit** | Under re-verification after Oct 22 directive | | Claimed cross-subsidy burden | **Up to Rs2/unit** | Regulator's stated reason for the cut | | Proposed contract term (new systems) | **5 years** | Down from 7 years, extendable by mutual consent |

The most important row for anyone deciding today is the first one: **existing agreements are being honored at their contracted rate.** That is the backbone of the "install now" case.

What this means if you are deciding to buy now

A lower export rate changes the *return* on surplus units — but it does not change the biggest driver of solar savings, which is **self-consumption**. Every unit you generate and use yourself offsets grid electricity at the full retail tariff, which in many slabs sits well above Rs40–Rs60 per unit. That value is untouched by the buyback debate.

Practical guidance for 2026 buyers:

1. **Size for self-use, not export.** Design your system to match daytime load so most of your generation is consumed, not exported. This makes any future buyback rate far less relevant to your payback. 2. **Act while existing terms may still apply.** Any consumer who connects under the current framework may lock in more favorable treatment than future net-billing entrants — subject to final rules. 3. **Add storage if your evening load is high.** A battery lets you shift daytime solar into the evening, cutting reliance on grid units and on the export rate entirely. 4. **Keep documentation clean.** Proper application, metering, and distribution-company paperwork protect your grandfathered status if rules change.

From the installations we handle across Punjab and Sindh, households that prioritize daytime appliance use — ACs, pumps, washing machines on timers — reach payback in roughly **3 to 5 years** even under conservative export assumptions. The buyback rate affects the tail end of returns, not the core savings.

For deeper context on the mechanics, see our explainer on the NEPRA net billing rules for 2026 and our guide to right-sizing a home solar system.

Why the review is good news for the solar sector

A sudden drop to Rs11 risked chilling rooftop adoption — exactly the clean, local generation Pakistan needs as it reduces reliance on imported fuel. By ordering verification and an impact study, the directive keeps the door open for a **more balanced outcome**: perhaps a phased reduction, a higher verified rate, or protections for smaller residential systems.

For buyers, uncertainty is uncomfortable, but a transparent review is better than a rushed cut. You can read NEPRA's own regulatory updates on the official NEPRA website (opens in a new tab) and track the Power Division's announcements through the Ministry of Energy (opens in a new tab).

Frequently Asked Questions

**Is the Rs11 solar buyback rate final in Pakistan?** No. As of the October 22, 2026 directive, the Rs11 (about Rs11.30 per unit) buyback rate is a proposal that the Prime Minister has ordered the Power Division and NEPRA to re-verify, including a study of its system-wide impact, before any reform is finalized.

**Will my existing net-metering agreement be cut to Rs11?** Existing consumers with valid seven-year net-metering agreements are being honored at their contracted **Rs22 per unit** until those agreements expire. The proposed lower rate targets new connections under the net-billing framework.

**Should I wait for the final rate before going solar?** For most homes and businesses, no. The largest share of solar savings comes from self-consumption at full retail tariff — unaffected by the buyback rate. Sizing for daytime use and connecting under current rules usually beats waiting.

**What is the difference between net metering and net billing?** Net metering credits exported units against imported units, often at a high rate. Net billing (gross metering) pays a separate, usually lower buyback rate for exports while you buy grid power at the retail tariff, so self-consumption becomes the priority.

The bottom line

PM Shehbaz's October 22 directive means the **Rs11 solar buyback rate is still under review, not settled.** Existing agreements remain protected at Rs22, and the core economics of solar — slashing your own grid bill through self-consumption — are as strong as ever in 2026.

If you have been waiting for certainty, the smartest move is to design a system around your own usage and connect under today's framework. **Talk to our team at Best Solar Company PK** for a free, no-pressure assessment of what the current rules mean for your roof and your bill.

Sources: ProPakistani, Profit by Pakistan Today, DAWN

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.