NEPRA Net Metering Policy Changes 2026 — What Every Solar Owner Must Know
NEPRA (National Electric Power Regulatory Authority) has made several significant updates to Pakistan’s net metering framework since the original 2015 policy. This guide covers the latest 2025–2026 net metering rules, what changed, how it affects your solar payback calculations, and what new applicants need to know before installing.
What Is Net Metering in Pakistan?
Net metering allows solar system owners connected to the national grid to feed excess electricity back to their DISCO (Distribution Company) and receive credit on their electricity bill. Under Pakistan’s net metering framework, the exported units offset your imported units at the same tariff rate — meaning your bill is calculated on the net difference between what you consume and what you produce.
📋 Regulatory body: Net metering in Pakistan is governed by NEPRA’s Alternative & Renewable Energy (ARE) Policy 2019 and subsequent amendments. Applications are processed by individual DISCOs — LESCO, HESCO, MEPCO, PESCO, QESCO, IESCO, SEPCO, FESCO, and TESCO.
Key Net Metering Policy Points in 2026
| Parameter | Current Rule (2026) |
|---|---|
| Eligible system size | 1kW – 1MW (residential: typically 1kW–100kW) |
| Export rate | Same as import tariff (kWh for kWh offset) |
| Billing period | Monthly — net units billed |
| Rollover of excess credits | Excess units roll over month to month; annual settlement at Rs. 2/kWh buyback |
| Required inverter type | Grid-tied or hybrid with anti-islanding protection |
| AEDB certification | Mandatory for inverter — must be on AEDB approved list |
| Installer requirement | Must be AEDB-licensed installer |
| Application fee | Rs. 5,000–25,000 depending on DISCO and system size |
| Bidirectional meter | Supplied and installed by DISCO at owner’s cost |
What Changed in 2025–2026?
- Annual buyback rate revised — Excess annual generation credits are now settled at approximately Rs. 2/kWh (previously higher). Design your system to avoid large annual surpluses.
- Processing timeline enforcement — NEPRA has mandated DISCOs to process net metering applications within 60 days of complete document submission. Previously, backlogs stretched to 6+ months.
- Commercial category expansion — Commercial and industrial users up to 1MW can now apply, opening net metering to factories and large commercial buildings.
- Simplified documentation — Single-window facilitation at many DISCOs has reduced the number of offices applicants need to visit.
⚠️ Critical for system sizing: Because excess annual generation is bought back at only Rs. 2/kWh (far below retail tariff), don’t oversize your solar system. Size it to cover 80–90% of your annual consumption — not 120–150%. Oversizing wastes money on capacity you won’t benefit from.
Net Metering Application Process (2026)
- Install your system — Use an AEDB-certified inverter and an AEDB-licensed installer. Keep all invoices and installation documents.
- Submit application to DISCO — Documents needed: CNIC copy, latest electricity bill, single-line diagram, inverter AEDB certification, installer license, property proof.
- Technical inspection — DISCO engineer visits to inspect the installation (anti-islanding, wiring standards, panel orientation). Typically scheduled within 2–4 weeks of application.
- Bidirectional meter installation — DISCO installs a bidirectional (import/export) meter at your property. You pay the meter cost (~Rs. 15,000–25,000).
- Connection agreement signing — Sign the Distribution Interconnection Agreement (DIA) with your DISCO. This formalizes net metering terms.
- First net metered bill — From your next billing cycle, bills will show both import and export readings — your bill is the net difference.
Which DISCOs Are Fastest for Net Metering in 2026?
| DISCO | Coverage Area | Avg. Processing Time | Online Portal |
|---|---|---|---|
| LESCO | Lahore division | 45–75 days | Yes |
| IESCO | Islamabad + Rawalpindi | 30–60 days | Yes |
| MEPCO | Multan, southern Punjab | 60–90 days | Partial |
| FESCO | Faisalabad division | 60–90 days | Partial |
| HESCO | Hyderabad, interior Sindh | 90–120 days | Limited |
| PESCO | Peshawar, KPK | 90–120 days | Limited |
| QESCO | Quetta, Balochistan | 120–180 days | No |
Frequently Asked Questions
❓ Can I get net metering on a rented property in Pakistan?
Yes, but only the name on the WAPDA meter (usually the property owner) can be the net metering account holder. Renters need written permission from the landlord and the landlord’s CNIC. The net metering agreement will be in the property owner’s name.
❓ What happens if my solar produces more than I consume in a month?
Excess monthly units roll forward as credits to your next bill — you pay zero that month. If you still have excess credits at the annual settlement date, they are paid out at approximately Rs. 2/kWh. This is why oversizing your system leads to poor returns.
❓ Does net metering work with off-grid systems?
No. Off-grid systems are not connected to the WAPDA grid, so there is no mechanism to export or import power. Net metering only applies to grid-connected (on-grid or hybrid) solar systems with an inverter that has anti-islanding protection.
❓ Is the net metering export rate the same as my import rate?
Yes — Pakistan uses a 1:1 kWh offset model. Each unit you export reduces your import bill by exactly one unit at your tariff rate. This is one of the most favorable net metering structures globally and significantly boosts solar ROI in Pakistan.
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Sources & references
Tariff, net-metering, and policy details on this page draw on the following official sources. Rates change often, so confirm current figures with the relevant authority or a licensed installer before you decide.
- NEPRA — National Electric Power Regulatory Authority: electricity tariffs and the 2026 shift from net metering to net billing.
- AEDB — Alternative Energy Development Board: solar policy, installer standards, and net-metering guidance.
- Your local distribution company (DISCO) — for example LESCO, K-Electric, IESCO, MEPCO, PESCO or QESCO — for area-specific tariffs and the net-metering application process.
