Solar Net Metering Tariffs Cut as NEPRA Issues Regulations 2026
In a setback for solar energy consumers, the National Electric Power Regulatory Authority (NEPRA) has reduced the rates at which electricity generated by solar users is purchased by the national grid, following the issuance of the Net Metering Regulations 2026 notification.
Under the new regulations, existing solar net metering consumers will continue to sell electricity to the national grid at the previously approved rate of PKR 25.32 per unit. However, for new solar consumers, NEPRA has announced a significant reduction of PKR 17.19 per unit in the power purchase rate.
As a result, new net metering consumers will now receive only PKR 8.13 per unit for electricity supplied to the national grid, a rate that is less than one-third of the previous tariff.
NEPRA has also introduced a revised net billing mechanism for both new and existing consumers. Under the new system, exported solar units will no longer be treated as equivalent to grid electricity units. Consumers will now be charged for all electricity drawn from the national grid according to applicable government tariffs and slab rates.
Additionally, the licensing period for new net metering consumers has been reduced from seven years to five years.
According to the Power Planning and Monitoring Company, Pakistan currently has net metering solar installations with a capacity of around 7,000 megawatts, while an estimated 13,000 to 14,000 megawatts of capacity is being generated by off-grid solar consumers.
Energy experts believe that the revised regulations could further accelerate the shift towards off-grid solar systems. The total number of solar net metering consumers in the country currently stands at 466,000.
Data from the Power Division’s Power Planning and Monitoring Company shows that 82 percent of net metering solar consumers are located in major urban centres. Lahore accounts for 24 percent of users, followed by Multan with 11 percent, Rawalpindi with 9 percent, Karachi with 7 percent and Faisalabad with 6 percent.
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