NEPRA Retains Net Metering for Existing Solar Consumers

The National Electric Power Regulatory Authority (NEPRA) on Monday decided to retain the net metering policy for existing solar consumers, providing clarity after recent reforms triggered a debate.

NEPRA has issued a formal notification amending the solar policy while safeguarding the interests of current net metering users.

The regulator has also invited feedback and suggestions from stakeholders, giving them 30 days to submit their input on the proposed amendments.

As per the notification, the amendment will take effect from February 9.

In a statement, the regulator said it has published the proposed amendments to the National Electric Power Regulatory Authority (Prosumer) Regulations, 2026 to elicit public opinion. The draft is available on NEPRA’s official website, and stakeholders have been asked to submit their comments to the registrar within the stipulated period.

Existing Solar Consumers Protected

NEPRA clarified that existing solar net metering consumers will not be affected by the new regulations. Their current agreements will remain valid until the expiry of their contractual terms.

The draft amendment states that approvals, licenses, agreements, and concurrences granted under the previous regulations will remain in effect. Distributed generators with valid agreements under the repealed regulations will be billed according to the earlier rate and mechanism until the expiry of their existing contracts.

The relevant sub-regulation is deemed to have taken effect from February 9, 2026.

What Changes Under the New Framework?

The federal government faced criticism after NEPRA introduced net metering reforms on February 9, fundamentally altering how surplus solar electricity is compensated.

Under the proposed framework:

Power utilities will purchase surplus electricity from prosumers, including households, businesses, and industries generating up to one megawatt, at the national average energy purchase price.

Electricity supplied back to prosumers will be billed at the applicable consumer tariff.

This effectively ends the previous one-to-one offset model, which allowed solar users to offset exported units against imported units to reduce or neutralize their electricity bills.

Shorter Contract Period

Another major change is the reduction in the standard agreement term from seven years to five years, renewable by mutual consent.

While existing prosumers will continue under their current contracts until expiry, all future renewals and new connections will fall under the new five-year net billing framework, a move that significantly alters long-term return calculations for solar investments.

Billing Adjustments

If the prosumer’s electricity supply exceeds the electricity consumed from the grid, the excess will be either adjusted in the subsequent bill or paid to the prosumer every three months.

The draft regulations are now open for public consultation before final approval.