Net Metering agreements limited to five years with renewal option

2026-02-09 - 15:56

KARACHI – National Electric Power Regulatory Authority (NEPRA) officially replaced long-standing net metering system with new net billing framework, sending ripples across the energy sector. Under Net Metering Regulations 2026, surplus electricity from households and businesses will no longer fetch the fixed Rs27 per unit rate. Instead, it will be purchased at the current national average energy price, meaning solar consumers will now have to navigate fluctuating compensation rates. Consumers will continue to be billed at the prevailing tariff, while any extra electricity fed into national grid will be adjusted under the new net billing mechanism. Importantly, these rules also extend to biogas-based power producers, broadening their impact. Billing will now be finalized at end of each billing cycle, with payments for excess electricity made on quarterly basis, a move that may affect cash flow for many producers. NEPRA capped net metering agreements at five years, with an option for renewal for another five-year term. This marks a major policy shift, as the Net Metering Regulations 2015 are now officially suspended and replaced. The energy regulator says these changes aim to modernize the framework, but for solar and biogas power users, the new rules signal a dramatic shift in how they earn from surplus energy, making careful planning more crucial than ever. New price announced: Electricity buyback rate for solar consumers reduced