By Asif Niaz Meo, Managing Director, SNM Solutions · Updated September 2026
The short version
On 9 February 2026, NEPRA replaced net metering with net billing. Surplus power you export now earns about Rs 11 per unit instead of Rs 22–27. But every unit you generate and use yourself still saves you the full tariff, roughly Rs 55–65. Solar remains a strong investment; what changed is how you design it. If you already had net metering on 9 February, you are protected until your agreement expires.
What changed on 9 February 2026
NEPRA’s Prosumer Regulations 2026 ended the net-metering scheme that Pakistan had run since 2015. Anyone who applies for a grid connection for their solar system after 9 February 2026 is now on net billing.
Under net metering, the grid worked like a battery. Every unit you exported during the day cancelled out a unit you imported at night, one for one. Under net billing, the two directions are priced separately. You sell your surplus to your DISCO at roughly Rs 11 per unit, and you buy what you import at your normal tariff.
Two other things are new for fresh connections: a five-year agreement, and a one-time licence fee of about Rs 1,000 per kW of system capacity.
Net metering vs net billing, side by side
| Net metering until 9 Feb 2026 |
Net billing from 9 Feb 2026 |
|
|---|---|---|
| Exported units | Offset imports one-for-one (worth Rs 22–27) | Sold at about Rs 11 per unit |
| Imported units | Cancelled by exports | Billed at your normal tariff |
| Units you use yourself | Save Rs 55–65 | Save Rs 55–65 (unchanged) |
| Agreement | Ongoing | Five years |
| One-time fee | None | About Rs 1,000 per kW |
| Best system design | Export-heavy was fine | Match your daytime load; consider a battery |
The number that did not change
This is the part most of the coverage misses. Net billing only reduced the value of the power you send away. It did nothing to the value of the power you use.
Every unit your panels generate that runs your air conditioner, your fridge or your factory line is a unit you no longer buy from the grid. At today’s tariffs for a typical higher-consumption household, that unit costs somewhere between Rs 55 and Rs 65 once taxes and surcharges are included. That saving is exactly what it was last year, and it rises every time the tariff does.
So the question is no longer “how much can I export?” It is “how much of my own solar can I use?”
What this means for how you design a system
1. Oversizing is now a mistake
Under net metering, a bigger system was always better: every extra unit was worth Rs 22–27 whether you used it or not. Under net billing, a system that exports half its output earns Rs 11 for that half. Sizing to your actual daytime consumption matters more than sizing to your roof.
2. Batteries became materially more attractive
Your panels peak at midday; your consumption peaks in the evening. Under net metering that mismatch did not matter. Now it does. Storing the afternoon surplus and using it after sunset is worth Rs 55–65 per unit, against Rs 11 for exporting it. For many homes, a hybrid system with battery storage now pays back faster than a larger on-grid system would.
3. Your usage pattern decides your payback
Two neighbours with identical 10 kW systems can now have very different returns, depending on whether someone is home during the day.
A worked example: what a 10 kW system actually returns
These are illustrative figures using conservative assumptions. A 10 kW system in Lahore produces around 40 units a day averaged across the year. We use Rs 50 per unit as an all-in tariff, and SNM’s published prices of Rs 700,000 for on-grid and Rs 1,500,000 for hybrid with lithium battery.
| Scenario | Daytime self-use | Monthly saving | Approx. payback |
|---|---|---|---|
| On-grid, home occupied by day Rs 700,000 |
50% (20 units used, 20 exported) | About Rs 36,000 | 2 to 3 years |
| On-grid, family out by day Rs 700,000 |
30% (12 used, 28 exported) | About Rs 27,000 | Just over 2 years |
| Hybrid, family out by day Rs 700,000 plus the hybrid inverter and wiring premium; battery counted separately |
55% effective (battery shifts ~10 units to evening) | About Rs 39,000 | 2 to 3 years |
Two things stand out. First, a correctly sized system still pays for itself 2 to 3 years and then runs for twenty more. Second, the payback is roughly the same for on-grid and hybrid. That surprises people until they see why: in Pakistan a battery is bought for load-shedding and voltage protection, and most homes install one with or without solar, so it is a separate purchase rather than part of the solar payback. What the hybrid adds to the solar bill is only the inverter and wiring premium. If you would not otherwise buy a battery, add its cost back and the payback lengthens accordingly. The only way to know your own number is to look at your actual bill and daytime usage, which is what a proper site survey does.
Already on net metering? You are protected
If your net-metering agreement was valid on 9 February 2026, it continues on the old terms until it expires. Two cautions. First, be careful before expanding an existing system, because modifications can affect your status; talk to your installer before you commit. Second, when the agreement does expire, you will move to net billing, so it is worth understanding the new rules now.
How to apply for net billing
- Get a proper load assessment. Under the new rules this is the single most important step, because it sets the size that maximises self-use.
- Install a grid-tied or hybrid system with an approved inverter and a bi-directional meter.
- Submit the application to your DISCO (LESCO in Lahore, K-Electric in Karachi, IESCO in Islamabad, and so on) with the system documentation and single-line diagram.
- Inspection and meter installation by the DISCO.
- Sign the five-year agreement and pay the one-time licence fee.
SNM handles the entire process, from the load assessment through to the signed agreement. We have secured more than 5,000 net-metering and net-billing approvals across Pakistan.
The 2026 rules in detail
These points are confirmed against the regulations and independent reporting, and they change how a system should be designed in Lahore:
- System size is capped at your sanctioned load. Under the old rules you could install up to 1.5 times your sanctioned load; new applications cannot exceed it. If your bill shows 10 kW sanctioned, 10 kW is the ceiling unless you first apply to LESCO to raise the load.
- Transformer saturation cap. Distribution companies cannot accept new applications once solar connected to your local transformer reaches 80 percent of its rated capacity. This is a real rejection risk in high-uptake areas such as DHA, Bahria Town and Johar Town, so ask LESCO to check your transformer before you commit to a size.
- Agreement term. New net-billing agreements run five years and are renewable. Existing seven-year net-metering agreements run to their expiry on the old terms.
- Settlement. Exported units are valued at about Rs 11, credited against your next bill or paid quarterly in cash, your choice.
- Grandfathering, and the trap. SRO 547(I)/2026 protects agreements signed before 9 February 2026 until they expire. That protection ends on any “material modification of the distributed generation facility resulting in change to the maximum electrical output”, which means adding panels or a bigger inverter can move the whole system to net billing. Read what happens if you expand a net-metering system before touching a protected installation.
Frequently asked questions
Is net metering still available in Pakistan?
Not for new applications. NEPRA replaced it with net billing on 9 February 2026. Agreements that were already valid on 9 February continue until they expire.
How much do I get paid for exported units under net billing?
About Rs 11 per unit, compared with Rs 22–27 under the old net-metering scheme.
Is solar still worth it under net billing?
Yes. Every unit you use yourself still saves the full tariff, roughly Rs 55–65. Payback is 2 to 3 years for both on-grid and hybrid systems, because in Pakistan the battery is bought for load-shedding and voltage protection and is not counted in the solar payback.
Should I add a battery now?
For many homes, yes. Storing your afternoon surplus and using it in the evening is worth far more than exporting it at Rs 11. It depends on your usage pattern, which a site survey will show.
What does net billing cost to set up?
A one-time licence fee of roughly Rs 1,000 per kW, and new connections sign a five-year agreement.
I already have net metering. Do I lose it?
No. Agreements valid as of 9 February 2026 are protected until expiry. Speak to your installer before expanding an existing system.
Find out your real payback under the new rules
Send us a recent electricity bill and we will show you the numbers for your home or business, sized for net billing, with no obligation.
Roman Urdu mein aam sawalat
Net metering aur net billing mein kya farq hai?
Net billing mein grid ko bheji gayi bijli ka rate taqreeban Rs 11 per unit hai, jabke jo bijli aap khud use karte hain woh Rs 55 se 65 per unit bachati hai. 10 February 2026 se naye connection net billing par hain.
Kya purana net metering agreement khatam ho jayega?
Nahi. 10 February 2026 se pehle manzoor shuda agreement apni muddat tak purani sharait par barqarar rehta hai.
Kya 2026 mein solar lagana faida mand hai?
Ji haan. Khud use ki gayi har unit Rs 55 se 65 bachati hai aur sahi size ka system taqreeban 2 saal mein payback deta hai.
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