Net billing in 2026: what changed for solar users in Pakistan
Rooftop solar transformed Pakistan's power market — and in 2026 the rules for selling surplus power back to the grid changed. Here is what homeowners, factories and investors need to know.
Published 26 October 2026
From net metering to net billing
Under net metering, units exported to the grid were set off against units imported, effectively valuing exports at close to the retail tariff. NEPRA's new regulations, effective 9 February 2026, move new connections to net billing: imports are billed at the applicable tariff and exports are credited at a separate, lower buy-back rate — reported at around PKR 13 per kWh against roughly PKR 26 previously.
What happens to existing contracts
After public objections, the government directed that existing net-metering consumers be protected. NEPRA published a draft amendment so that consumers with current net-metering agreements keep their existing export terms until those agreements expire. Check the term and renewal clause of your own agreement — that date now matters.
Commercial and industrial users
For factories and commercial buildings the economics shift towards self-consumption: sizing systems to on-site load, adding storage, and scheduling energy-intensive work for daylight hours. Lease and power purchase agreements with solar providers should be reviewed for clauses that assumed net-metering export values.
Investors and developers
Rooftop-solar business models built on export income need re-pricing. Contracts with distribution companies, interconnection approvals and any claims arising from regulatory change deserve a legal review before new capital is committed.
How we help
We review net-metering and net-billing agreements, solar EPC and lease contracts, and advise on NEPRA proceedings and disputes with distribution companies. See our Projects & Energy practice.
Frequently asked questions
Does net billing apply to my existing solar system?
Under NEPRA's draft amendment, existing net-metering agreements keep their terms until expiry; new connections move to net billing.
When did net billing take effect?
The new regulations took effect on 9 February 2026.
Should businesses still install solar?
Often yes, but systems should now be sized for self-consumption, possibly with storage, rather than for export income.
This article is general information as of October 2026, not legal advice. Rules change; contact the firm about your specific matter.