Good News for Solar Users as NEPRA takes U-Turn Net Metering Policy

2026-02-16 - 16:26

ISLAMABAD – A sigh of relief for solar users as National Electric Power Regulatory Authority (NEPRA) rolld out draft amendment to Policy 2026 that partially reverses its recently introduced changes to the net metering framework. Last month, NEPRA proposed major changes to net metering contracts for both current and future solar consumers, which are prosumers, to address growing share of solar power and cut pressure on costly, inefficient state-run power system. These changes eliminated 1-to-1 unit exchange, proposed cutting solar buyback rate from Rs25.9 per unit to around Rs11, shortened contract durations from seven to five years, and shifted capacity payment obligations onto solar users. Under revised framework, power distribution companies would be required to purchase surplus electricity from solar users producing up to one megawatt at the national average energy purchase price, while selling electricity back to them at prevailing consumer tariffs. This effectively ended traditional net metering. The policy drew widespread criticism, leading Prime Minister Shehbaz Sharif to direct the Power Division to seek a review of the regulations to safeguard existing contracts. NEPRA also issued draft amendments and invited feedback from stakeholders within a month. The proposed changes, effective from February 9, exempt current net metering consumers from the new rules until their existing agreements expire. According to the draft, all approvals, licences, and agreements signed under the previous regulations will remain valid, and billing for these consumers will continue under the old mechanism until the end of their contract terms. In light of PM’s direction, Power Minister Awais Leghari clarified that the government would not seek to roll back the policy for new solar consumers. He said the objective was to shield non-solar users from an additional financial burden of Rs2.87 per unit. The review request to NEPRA, he added, would focus solely on protecting the net metering arrangements of the 466,506 existing solar users. Leghari acknowledged that the changes affect only about 1% of electricity consumers, though he did not clearly explain why this group was prioritised over broader challenges such as power theft, poor recovery, high transmission losses, idle capacity payments, and cross-subsidies. Under NEPRA’s revised policy, netting of exported and imported electricity units has been abolished. Solar consumers will now sell electricity at Rs8.13 per unit while buying it back at rates that can reach up to Rs60 per unit. New solar policy, net metering