- The Ministry of Energy, Pakistan, has substituted the net metering system with the gross billing framework, where solar electricity is bought back at a fixed rate.
- New solar contracts are restricted to five years. The installation of less than 25 kW needs immediate NEPRA authorization.
- The purpose of the shift is to ease the financial load on those who are not solar customers and create grid stability in the long term.
Solar consumers in Pakistan benefit from rooftop solar systems feeding electricity to the national grid.
ISLAMABAD: Pakistan’s Ministry of Energy has introduced major changes to the country’s solar net metering policy. Under the revised policy, solar consumers will receive a fixed compensation of Rs11 per unit for electricity exported to the grid, down from Rs25.98. The relocation supports incentives with realities in the market and grid sustainability
New Agreement Rules
Solar power contracts will now last five years, compared with the previous longer terms. Additionally, all installations up to 25 kilowatts require a license from NEPRA, whereas domestic and small commercial consumers were previously exempt.
From Net Metering to Gross Billing
Earlier, excess electricity reduced consumers’ bills directly. Now, the gross billing system pays for electricity generated at a fixed rate, while electricity drawn from the grid is billed separately at NEPRA-approved tariffs. Existing net metering users with valid contracts may continue at previous rates until expiry.
Reason for Change
Authorities mention the increase in the cost of non-solar grid consumers, the loss to the distribution companies, and the operational risks due to overproduction on the sunny days. The transition is also meant to avoid additional tariff increments and guard grid stability.
Stakeholder Consultation
The reforms are based on months of discussions with the regulatory bodies, distribution companies, and solar stakeholders. NEPRA has invited feedback and may hold public hearings before finalizing the regulations.
