• By Best Solar Company PK
  • 21 Jul, 2026
  • Solar Policy
  • 8 min read

If you installed rooftop solar in the last few years, you locked in one of the best deals in Pakistan's energy market: the utility bought your surplus units back at roughly the same price it charged you — around Rs 21–22 per unit under the old net-metering system. That deal is now closed to new applicants. But thanks to a direct intervention by the Prime Minister and a follow-up amendment by NEPRA, your old rate is protected — *if* you understand the rules and avoid a few costly mistakes.

Here is what actually happened, and the concrete steps every existing solar owner should take now.

What changed — and why the PM stepped in

In December 2025, NEPRA moved to replace net metering with a **net-billing (gross-metering style) regime** for new rooftop solar consumers. The headline change was the buyback rate: instead of being credited around **Rs 22 per unit** for exported electricity, new users would be paid roughly **Rs 11.30 per unit** — barely half. Import electricity, meanwhile, is still billed at full retail tariff plus taxes, so the economics for new installations changed sharply overnight.

The regulator's justification was the cross-subsidy. NEPRA and the Power Division argued that around **466,000 net-metering users** were shifting costs onto more than **37.6 million grid-only consumers**. Officials put the burden transferred to grid consumers at about **Rs 159 billion** as of December 2024, warning it could balloon toward **Rs 4,240 billion by 2034** if left unchanged.

The abrupt cut triggered a public backlash. Prime Minister Shehbaz Sharif convened a high-level meeting and **ordered NEPRA to file an appeal/reconsideration** aimed at protecting people who had already invested in solar in good faith — many of whom took loans expecting the old payback maths.

The principle NEPRA settled on: rules can change for the future, but a valid agreement you already signed must be honoured to the end of its term.

The protection you now have

Following the PM's order, NEPRA issued a draft amendment on **16 February 2026** and finalised the protection in an amendment to the Solar (Prosumer) Regulations, notified in **early April 2026 with retrospective effect from 9 February 2026**. The core guarantee is straightforward:

  • If you held a **valid net-metering agreement, licence or concurrence on or before 9 February 2026**, you keep your existing terms — including the old ~Rs 22 buyback/settlement mechanism.
  • That protection lasts **until your agreement expires**, not indefinitely. Net-metering agreements were typically issued for a multi-year term (historically up to seven years, with newer contracts limited to shorter terms).
  • Your rights are grandfathered under the **repealed 2015 net-metering regulations** — the new net-billing rate does **not** automatically apply to you.

In plain terms: the government did not rip up existing contracts. It drew a line at 9 February 2026. Everyone on the correct side of that line keeps the deal they signed up for.

The traps that can cost you your old rate

This is where owners need to be careful. The protection is tied to your **existing, unchanged agreement**. Several actions can push you out of the old regime and into the new low-rate net-billing rules:

  • **Expanding or upgrading your system.** NEPRA explicitly stated that the old financial benefits do **not** carry over where there is a "material modification" that changes the maximum electrical output of your facility. If you add panels and increase your sanctioned export capacity, that addition — and potentially your whole arrangement — can fall under the new rules.
  • **Any capacity added after 9 February 2026** is treated under the new framework, regardless of when your original system was installed.
  • **Letting your agreement lapse.** When your current term expires, renewal will be under whatever rules apply at that time — most likely net-billing. Protection is time-bound.
  • **Oversizing beyond sanctioned load.** New rules cap systems to your sanctioned load and bar DISCOs from accepting applications once a distribution transformer hits **80% of its rated capacity**. Expansion requests can be refused on these grounds alone.

What existing solar owners should do now

Treat your net-metering agreement like the valuable financial asset it is. Concrete steps:

  • **Find and file your agreement.** Locate your signed net-metering agreement and the concurrence/licence letter from your DISCO (LESCO, K-Electric, IESCO, MEPCO, etc.). Note the **execution date** and the **expiry/term date**. Confirm the date is on or before 9 February 2026.
  • **Confirm your status in writing.** If you have any doubt, ask your DISCO's net-metering cell to confirm in writing that your agreement is registered and active under the old regulations. Keep the reference number.
  • **Do not "improve" your system casually.** Before adding a single panel, get written clarification on whether it will be treated as a material modification. In many cases it is smarter to **leave a well-performing net-metering system exactly as it is** and, if you need more power, design a separate self-consumption setup (with batteries) that does not touch your protected export agreement.
  • **Track your expiry date.** Put the agreement expiry in your calendar. As it approaches, get current advice on renewal terms — the rules in force then will govern your next contract.
  • **Keep your bills and export records.** Save monthly bills showing units exported and credited. If a billing dispute arises, this documentation proves you were settled at the old rate.
  • **Watch for further appeals.** The policy is still contested. The PM's appeal reflects ongoing pressure, and further tweaks are possible. Follow credible updates rather than WhatsApp forwards.

Should new buyers still go solar?

Yes — but with clear eyes. Even at ~Rs 11.30 per unit for exports, the strongest savings from solar come from **self-consumption**: every unit you generate and use immediately offsets electricity you would have bought at full retail tariff (Rs 40–65+ per unit including taxes and surcharges for many slabs). Under net-billing, the smart design is to **size your system to your daytime load** and add batteries to shift solar into the evening, rather than exporting cheaply to the grid. Payback periods are longer than the old net-metering era, but with panel prices at historic lows, solar still beats paying full grid tariff for years to come. If you are weighing a system today, read our guidance on how net billing changes the maths.

Frequently Asked Questions

**Do I automatically keep my old Rs 22 rate, or do I have to apply for it?** If you had a valid net-metering agreement on or before 9 February 2026, the protection applies automatically under NEPRA's amendment — you do not need to re-apply. However, you should verify your agreement is correctly recorded with your DISCO and keep documentary proof, in case of a billing error.

**How long does the protection last?** Until your existing agreement expires. It is not permanent. Net-metering agreements were issued for a fixed term, so check your expiry date. On renewal, you will likely move to the new net-billing rates.

**If I add more panels, do I lose my old rate?** You risk it. NEPRA said the old financial benefits do not continue where there is a material modification that changes your system's maximum output. Any capacity added after 9 February 2026 falls under the new rules. Get written confirmation from your DISCO before expanding.

**What is the new rate for people who install now?** New rooftop solar users are moved to net-billing, with exports credited at roughly Rs 11.30 per unit — down from the ~Rs 22 under old net metering — while imported electricity is billed at full retail tariff.

**Why did the government cut the rate at all?** Officials cited a growing cross-subsidy: solar net-metering users were said to be shifting around Rs 159 billion (as of December 2024) onto grid-only consumers, projected to rise sharply by 2034. The PM's order was an attempt to balance that concern against protecting people who had already invested.

**Where can I confirm all this officially?** Check NEPRA's notified Solar/Prosumer Regulations and amendments, and confirm your own status directly with your DISCO's net-metering department. Do not rely on unofficial forwards for something this financially important.

*This article is for general guidance based on NEPRA notifications and public reporting as of mid-2026. Confirm the current rules and your specific agreement status with NEPRA or your DISCO before making decisions.*

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.