• By Best Solar Company PK
  • 09 Oct, 2026
  • Net Metering
  • 8 min read

If you are planning a new solar system in Pakistan in 2026, one rule now shapes every decision you make: **your solar size is capped at your sanctioned load**. This comes directly from the NEPRA Prosumer Regulations 2026, notified as **SRO 251(I)/2026** and in force since **9 February 2026**. For homeowners and businesses, the era of oversizing a system just to export surplus units to the grid is effectively over.

This guide explains what the sanctioned-load cap means for sizing a new system, why export-led economics no longer work, and how to right-size for self-consumption so your investment still pays back fast.

What SRO 251(I)/2026 Actually Changed

The headline change is simple but far-reaching. Under the new regulations, **the installed capacity of your distributed generation (DG) facility cannot exceed the sanctioned load of your premises**. Previously, consumers could install up to **150% of their sanctioned load** — which encouraged people to build larger-than-needed systems and bank surplus units against the grid.

The 2026 framework closes that door. Alongside the sanctioned-load cap, NEPRA introduced several other limits:

  • A maximum DG facility size of **1 MW** for any single prosumer.
  • A mandatory **load flow study** for any installation of **250 kW or above**.
  • **No new connections** on a distribution transformer once generation on it reaches **80% of its rated capacity**.
  • Licensing requirements **scrapped for small prosumers up to 25 kW**, simplifying approval for most homes.

Under SRO 251(I)/2026, your meter is sized for self-use first and export second — not the other way around.

These rules sit on top of the bigger shift from **net metering to net billing**, which changed how exported units are valued. If you want the full billing picture, read our breakdown of the NEPRA net billing rules for 2026.

Why Oversizing-to-Export Is Dead

The old playbook was straightforward: install as much solar as the rules allowed, export heavily during the day at the full retail rate, and use those banked units to wipe out your night-time bill. Under net metering, one exported unit offset one imported unit — a near 1:1 value.

Net billing broke that equation. Now, imported electricity is charged at the **prevailing grid tariff — roughly Rs 45–70 per unit** depending on your slab and category, while surplus you export is bought back at the **National Average Energy Purchase Price, reported at around Rs 11–13 per unit** for new prosumers. Some reporting cites figures as low as **Rs 8.13 per unit**.

That gap is the whole story. Here is how the two models compare:

| Factor | Old Net Metering (pre-Feb 2026) | New Net Billing (SRO 251(I)/2026) | |---|---|---| | Max system size | Up to 150% of sanctioned load | Capped at 100% of sanctioned load | | Value of exported unit | ~Rs 25–27 (retail offset) | ~Rs 11–13 (buyback price) | | Value of self-consumed unit | Avoided retail tariff | Avoided retail tariff (Rs 45–70) | | Agreement term | 7 years | 5 years | | Best financial strategy | Export surplus | Self-consume surplus |

A self-consumed unit is now worth **3 to 5 times more** than an exported one. Building extra panels purely to push power onto the grid means you spend lakhs of rupees on capacity that earns you the lowest possible rate. The oversize-to-export model simply no longer returns the money it once did.

Existing consumers who signed a valid net-metering agreement **before 9 February 2026** are grandfathered — they keep their old terms and the older buyback rate of around **Rs 25.32 per unit** until that agreement naturally expires. New applicants do not get those terms.

How to Right-Size for Self-Consumption

Right-sizing means matching your solar generation to the electricity you actually use **during daylight hours**, when the panels are producing. The goal most installers now target is self-consuming **85–95%** of what your system generates. Here is a practical approach for 2026.

### 1. Check your sanctioned load first

Your sanctioned load is printed on your bill (in kW). This is now your hard ceiling. A typical urban home has a sanctioned load of 3–7 kW; many will need to **apply for a load enhancement** with their DISCO (LESCO, K-Electric, IESCO, etc.) before installing a larger system.

### 2. Map your daytime usage

List the loads that run while the sun is up: air conditioners, water pumps, refrigerators, office equipment, and so on. In Pakistan, summer cooling is the single biggest daytime driver. If most of your consumption is at night, a smaller array plus storage beats a bigger grid-tied array.

### 3. Size the array to daytime demand, not the roof

A common 2026 benchmark: a **10 kW on-grid system costs roughly Rs 750,000–1,200,000** installed (about **Rs 100,000–120,000 per kW**), including Tier-1 panels, inverter, structure, and net-billing setup. Buying 15 kW when your daytime load is 8 kW now wastes capital — the extra 7 kW exports at the low buyback rate.

### 4. Add storage if your evenings are heavy

Because exporting is no longer rewarding, storing midday surplus for evening use often makes more sense than sending it to the grid. A battery lets you self-consume what you would otherwise export cheaply. Explore options on our solar battery storage and hybrid solar systems pages.

**An original tip from our installation teams:** before finalising size, pull your last 12 months of bills and separate peak-summer months from winter. Size for your *shoulder-season* daytime load (spring/autumn), not your August peak. You will self-consume nearly everything for 8–9 months and only lightly export in peak summer — the sweet spot under net billing.

Frequently Asked Questions

**Does the sanctioned-load cap apply to existing solar owners?** No. If you had a signed net-metering agreement before 9 February 2026, you are grandfathered on your old terms, including the older buyback rate, until your agreement expires. The cap applies to new applications and material capacity upgrades.

**Can I still install solar bigger than my sanctioned load?** Not for a grid-connected prosumer system under SRO 251(I)/2026. If you need more capacity, apply to your DISCO for a load enhancement first, then size your system to the new sanctioned load.

**Is solar still worth it in Pakistan under net billing?** Yes — because the value is now in self-consumption. With grid tariffs at Rs 45–70 per unit, every unit you generate and use yourself avoids that cost. A right-sized system still typically pays back in roughly 3–5 years. See our net metering vs net billing comparison.

**Do I need a licence for a home solar system?** Not for systems up to 25 kW. NEPRA removed the licensing requirement for small-scale prosumers, so most residential approvals are now simpler. Our net metering application guide walks through the steps.

The Bottom Line

SRO 251(I)/2026 rewrites the sizing rulebook: your solar system is now capped at your sanctioned load, and the money is in **using your own power, not selling it**. Oversizing to export is dead — but a tightly right-sized system matched to your daytime load, with storage where evenings are heavy, remains one of the best investments a Pakistani household or business can make in 2026.

Ready to size it correctly? **Get a free load assessment and quote from Best Solar Company PK** and build a system that pays back fast under the new rules.

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.