Solar Net-Metering Consumers to Witness Reduction in Benefits

The National Electric Power Regulatory Authority (Nepra) has scheduled a public hearing for February 6 to review proposed changes to the solar net-metering system.

Nepra said it received comments from stakeholders, including government bodies, power utilities, organizations, and the general public, prompting the hearing. The regulator has invited all stakeholders to present their views.

Nepra has issued draft Prosumer Regulations 2025 that propose changes to existing net-metering rules. The draft limits new solar installations to a consumer’s sanctioned load, replacing the current provision that allows installations of up to 150 percent of sanctioned capacity.

Existing net-metering consumers will continue under their current seven-year contracts until those agreements expire. The draft regulations also reduce the contract period for new net-metering connections from seven years to five years, with renewal subject to mutual consent.

Nepra will directly regulate and license solar systems ranging from one kilowatt to one megawatt. Nepra has also proposed changing the payment mechanism for surplus electricity supplied to the grid.

Under the proposal, prosumers will receive the national average energy purchase price, estimated at about Rs. 13 per unit, instead of the current rate of around Rs. 26 per unit. The regulator plans to replace net metering with net billing, charging imported electricity at the applicable tariff and crediting exported power at the revised rate.

Nepra said the proposed rules aim to update the regulatory framework as on-grid solar capacity continues to expand across the country.