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

If you have been waiting to go solar, the past few weeks have been nerve-wracking. On 22 October, Prime Minister Shehbaz Sharif stepped in and ordered NEPRA and the Power Division to re-verify the proposed **solar buyback rate** of roughly Rs11 per unit before any new net-billing framework is finalized. That single directive put a pause on a change that would nearly halve what rooftop owners earn for the surplus power they send to the grid.

So what does this review actually mean for anyone installing solar now in Pakistan? Below we break down the proposed numbers, the reason behind the push, and the practical steps to protect your investment while the policy is still in flux.

What the Prime Minister Actually Ordered

In a high-level power-sector meeting on 22 October, the PM declined to rubber-stamp the Power Division's proposal and instead directed officials to "expedite a review of the proposed tariff" and "assess its impact before finalizing reforms."

In plain terms, the government is not scrapping the buyback cut — it is re-checking the math first. The Power Division wants to drop the rate paid for exported solar units from around Rs21–22 to about **Rs11.30 per unit**, a reduction of nearly 50%. An even steeper Rs10 proposal had already been rejected by the cabinet earlier, which is partly why this fresh verification was ordered.

The buyback rate is not being abolished — it is being re-examined. For buyers that means a narrow window, not a closed door.

The PM also asked for new standard contracts aligned with a **net billing** model, fresh public consultation, and a clearer communication strategy. You can track how this fits the bigger shift in our net metering to net billing explainer.

Net Metering vs Net Billing: The Core Difference

Understanding why Rs11 matters requires understanding the model change. Under the old **net metering** system, one exported unit cancelled one imported unit — effectively full retail value. Under **net billing**, the two are decoupled: every unit you draw from the grid is billed at the full slab tariff, while every unit you export is bought back at the lower, fixed buyback rate.

| Factor | Net Metering (old) | Net Billing (proposed) | |---|---|---| | Export credit | ~Rs27/unit (full retail) | ~Rs11.30/unit (fixed) | | Import charge | Offset by exports | Full slab tariff | | Best system design | Oversize to bank units | Right-size for self-use | | Existing consumers | Protected under 2015 rules | Grandfathered until agreement expires |

The headline takeaway: under net billing, the money is in **using your own solar power**, not in selling it back cheaply.

Why the Government Wants to Cut the Rate

The Power Division's case rests on cost-shifting. According to figures cited in the review:

  • Rooftop solar reduced grid electricity sales by about **3.2 billion kWh in FY2024**.
  • That shortfall pushed roughly **Rs101 billion** in fixed costs onto non-solar consumers.
  • It lifted the average national tariff by about **Rs0.9 per kWh**.
  • Left unchecked, officials project the burden could reach **Rs545 billion by FY2034**.

Whether or not you agree, this is the data the regulator is now re-verifying. The National Electric Power Regulatory Authority (NEPRA) has also signalled it will revise the buyback rate periodically going forward, so a single fixed number is unlikely to last for the full life of your panels anyway.

What a Revision Means If You Install Solar Now

Here is the practical reality for a Pakistani homeowner or business weighing a 10kW or 15kW system this quarter.

**1. Existing agreements are protected.** The revised framework is not meant to apply retroactively to consumers who already hold valid net-metering licenses and agreements under NEPRA's 2015 regulations. Those remain effective until they expire — which is exactly why rushing to lock in a connection has value.

**2. Payback periods lengthen — but stay attractive.** At Rs27/unit export credit, an oversized system paid back fast on sold surplus. At Rs11/unit, a system sized mostly for daytime self-consumption still typically pays back in roughly 3–5 years, because you are avoiding grid units that now cost far more than Rs11.

**3. System design logic flips.** Our installers now right-size arrays to match daytime load and increasingly pair them with battery storage, so you consume your own generation in the evening instead of exporting it for pennies. See our guide to solar battery storage in Pakistan.

**4. Prices favour buyers.** Panel prices in Pakistan remain near historic lows — quality tier-1 panels sit around Rs28–38 per watt, and a complete 10kW on-grid system runs roughly Rs1.4–1.8 million installed, depending on inverter and structure. Cheaper hardware partly offsets a lower buyback rate.

A Practical Checklist Before You Sign

  • Confirm whether your DISCO is still processing net-metering applications under the 2015 rules.
  • Ask your installer, in writing, which tariff framework your agreement will fall under.
  • Size the system to your **daytime consumption first**, export second.
  • Budget for a hybrid inverter so you can add batteries later without replacing equipment.
  • Keep copies of your application date — it may determine which rate you are grandfathered into.

For model-by-model options, compare our best solar panels in Pakistan 2025 roundup before committing.

Frequently Asked Questions

**What is the proposed solar buyback rate in Pakistan right now?** The Power Division has proposed a net-billing buyback rate of about Rs11.30 per unit, down from the roughly Rs21–27 per unit that net-metering consumers historically received. As of late October, the Prime Minister has ordered NEPRA and the Power Division to re-verify this figure before it is finalized, so it is not yet law.

**Will the lower buyback rate apply to my existing net-metering connection?** No. Consumers with valid licenses and agreements under NEPRA's 2015 net-metering regulations are expected to be grandfathered and keep their existing terms until those agreements expire. The new rate targets fresh applicants under the proposed net-billing framework.

**Is it still worth installing solar at Rs11 per unit?** Yes, for most households and businesses. The real savings come from not buying grid units at Rs40–60+ per unit during the day, not from exporting surplus. A right-sized system — ideally with battery storage — still delivers a strong return even if exports earn only Rs11.

**When will the final decision be made?** There is no confirmed date. The PM's 22 October directive sent the proposal back for verification, fresh consultation, and redrafted standard contracts, so the timeline depends on NEPRA's review and cabinet approval.

The Bottom Line

The Prime Minister's order to re-verify the Rs11 **solar buyback rate** is a reminder that Pakistan's solar policy is still a moving target — but it is moving toward self-consumption, not away from solar itself. For anyone installing now, the smart play is to lock in under today's rules, size your system for your own usage, and treat the grid buyback as a bonus rather than the business case.

Need help designing a system that stays profitable under net billing? Talk to our team at Best Solar Company PK for a free, no-obligation assessment tailored to your bill.

Sources: ProPakistani, Business Recorder, NEPRA

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.