• By Best Solar Company PK
  • 13 Oct, 2026
  • Net Metering
  • 8 min read @@METATITLE@@ PM Orders Solar Buyback Tariff Review — U-Turn Coming? @@METADESC@@ PM Shehbaz orders a review of Pakistan's solar buyback tariff after backlash. Latest NEPRA net billing rates in PKR plus whether to lock in now or wait.

Pakistan's rooftop solar boom has collided head-on with the national grid's finances — and the government blinked. After weeks of furious reaction from homeowners, solar installers and lawmakers across party lines, **Prime Minister Shehbaz Sharif directed the Power Division and NEPRA to re-verify the slashed solar buyback tariff** and file a review petition to protect existing consumers. The question every prosumer is now asking: is a genuine U-turn coming, or should you lock in an agreement immediately before the rules tighten again?

This guide breaks down exactly what changed, what the PM's intervention actually means, and the practical decision facing anyone with panels on their roof — or planning to install them in 2026.

What triggered the solar buyback tariff backlash

The flashpoint was the **NEPRA (Prosumer) Regulations, 2026**, notified on 9 February 2026. In one stroke, NEPRA repealed the Net Metering Regulations 2015 and moved the entire country from *net metering* to *net billing*.

The difference is enormous for your wallet:

  • **Net metering (old system):** Units you exported were offset one-for-one against units you imported. The grid effectively acted as a free battery.
  • **Net billing (new system):** You *buy* grid electricity at the full consumer tariff — roughly **Rs 37–55 per unit** — but your *exported* surplus is only bought back at the National Average Energy Purchase Price, about **Rs 10–11 per unit**.

That buyback rate is the heart of the fury. It collapsed from around **Rs 25.9 per unit** to roughly **Rs 11 per unit** — a cut of well over 50%. New prosumer agreements were also trimmed from seven years to **five years**.

The grid stopped being a free battery and became a wholesale buyer that pays you Rs 11 and sells it back at Rs 50.

The Power Division defended the move with hard numbers: it projected that leaving net metering untouched would shift up to **18.8 billion units** of lost grid sales by FY2034, a cumulative burden of around **Rs 545 billion**, pushing tariffs up Rs 5–6 per unit for everyone else — largely non-solar households who can't afford panels.

What PM Shehbaz actually ordered

Here's where the "U-turn" talk comes from. Facing criticism in Parliament and a public outcry, the PM stepped in — for the third time on this issue in just over a year. He directed the Power Division to:

  • **File a review petition before NEPRA** rather than letting the February regulations stand unchallenged.
  • Ensure **"every possible safeguard"** for existing consumer contracts.
  • Re-verify the buyback tariff calculation itself, given doubts about whether Rs 11 fairly reflects the value solar exports deliver during peak daytime demand.

In response, NEPRA floated **draft amendments to the Solar Policy 2026** that roll back some of the most controversial changes for existing users. Crucially, this does *not* automatically restore net metering for new applicants — it mainly reinforces protection for those already in the system.

Are existing net-metering agreements safe?

Mostly, yes — and this is the single most important fact for current prosumers.

If you signed a **valid net-metering agreement before 9 February 2026**, you are exempted from net billing. Your old contract — including the old buyback rate — stays intact until it naturally expires. You do **not** need to re-sign, and you should **not** cancel a valid agreement.

The grandfathering clause is exactly what the PM's review petition is designed to defend, so the political winds are currently blowing in favour of existing holders.

Buyback tariff: old vs new at a glance

| Feature | Net Metering (pre-Feb 2026) | Net Billing (Prosumer Regs 2026) | |---|---|---| | Buyback rate | ~Rs 25.9/unit (offset) | ~Rs 10–11/unit | | Import tariff | Offset 1:1 | Full tariff (~Rs 37–55/unit) | | Agreement term | 7 years | 5 years | | Credit carry-over | Up to 3 months | ~1 month | | Existing users | Protected until expiry | N/A (grandfathered) |

Is a real U-turn coming — or just damage control?

Be realistic. The political signals point to *partial* relief, not a full reversal. The Rs 545 billion cross-subsidy argument hasn't disappeared, and the IMF programme leaves little room for the government to restore the old one-for-one net metering en masse. The most likely outcomes of the re-verification are:

  • A **modestly higher buyback rate** than Rs 11 (campaigners are pushing for Rs 13–19).
  • **Firmer legal protection** for pre-February agreements.
  • Possibly a **grace window** for pending applications filed before the cut-off.

A return to pure net metering for all new installations is the least likely result. Treat any promise of a full U-turn with caution.

Should you lock in now or wait?

Our on-the-ground experience installing systems across Punjab and Sindh points to a clear, segmented answer:

  • **If you already hold a pre-9-Feb-2026 agreement:** Do nothing except keep it active. You're grandfathered and the review protects you. Don't let an installer talk you into "upgrading" your contract.
  • **If your application is pending or nearly complete:** Push to finalise it as fast as possible. Older, more favourable terms may still be honoured, and waiting only risks landing you under net billing.
  • **If you're a brand-new buyer:** Don't wait for the review. Net billing is already the law, and even at Rs 11 buyback, a *right-sized* system that maximises **self-consumption** (using your own power instantly rather than exporting it) still pays back in roughly 3–4 years at today's grid tariffs.

The golden rule under net billing has flipped: the goal is no longer to export as much as possible, but to **consume what you generate** and export as little as possible. That changes optimal system sizing — and makes battery storage far more attractive than it was.

For a full breakdown of the new rules, see our guide to the NEPRA net billing rules for 2026, and if you're weighing storage, read how battery backup changes solar payback. Unsure what size to install? Our solar system sizing guide for Pakistani homes walks through the math.

Frequently Asked Questions

**Is net metering banned in Pakistan now?** For new applicants, yes — NEPRA repealed the 2015 net metering regime on 9 February 2026 and replaced it with net billing under the Prosumer Regulations 2026. Existing agreements signed before that date remain valid until they expire.

**What is the current solar buyback tariff?** Under net billing, surplus exports are bought back at the National Average Energy Purchase Price, roughly Rs 10–11 per unit — down from about Rs 25.9 per unit under the old net metering offset.

**Will PM Shehbaz's review restore the old rates?** A full reversal is unlikely. The review petition most plausibly delivers a somewhat higher buyback rate and stronger protection for existing contracts, rather than bringing back one-for-one net metering for everyone.

**Does solar still make financial sense in 2026?** Yes. Grid tariffs of Rs 37–55 per unit mean every unit you self-consume saves far more than the Rs 11 export rate. A correctly sized system focused on daytime self-use still pays for itself within about 3–4 years.

The bottom line

The PM's order to re-verify the **solar buyback tariff** is real relief for existing prosumers and a signal that the harshest cuts may soften — but it is not a reset button. If you're already in the system, sit tight and stay protected. If you're buying new, don't gamble on a U-turn: install a self-consumption-first system now and the numbers still work. Need tailored advice for your roof and bill? Talk to our team at Best Solar Company PK for a free net-billing savings assessment.

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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.