Net Metering to Net Billing: What NEPRA’s 2026 Rules Mean for Your Electricity Bill

If you have solar on your roof in Pakistan, or you are about to install it, the rules changed on 9 February 2026. NEPRA replaced the net metering framework that had been in place since 2015 with a system called net billing. The name change sounds technical. In practice it changes what a unit of solar electricity is worth to you, and it changes what a sensibly designed solar system looks like.

Here is what actually changed, what it costs in rupees, and what to do about it.

What changed on 9 February 2026

Under the old net metering rules your meter effectively ran both ways. Every unit you exported to the grid during the day cancelled out a unit you imported at night. One for one. You settled the difference in units, and unused credits carried forward.

Net billing ends that. There are now two separate prices:

• The distribution company buys your exported units at the National Average Energy Purchase Price — currently around Rs. 11 per unit.
• You buy grid units at your normal consumer tariff — commonly Rs. 40 to Rs. 60 per unit depending on your slab and region.
• Settlement happens in rupees, monthly. Units are no longer banked against each other.

Several other changes came in the same regulations:

• New agreements run five years instead of seven, renewable by mutual consent.
• A concurrence fee of roughly Rs. 1,000 per kW applies to new applications.
• The framework covers distributed generation up to 1 MW.
• No new connections are allowed where generation on a transformer has already reached 80% of its rated capacity.

The whole policy change, in one ratio

Export: about Rs. 11. Import: Rs. 40 to Rs. 60.

Under net metering, a unit sent to the grid came back as a unit. Under net billing you have to export roughly four or five units to pay for one unit you bring back at night.

That single ratio is the entire policy change, and it is why a system designed in 2024 is not the system you should be building in 2026. Producing more electricity is no longer the goal. Using your own electricity is.

What it looks like in rupees

Take a household in Lahore with a 6 kW system. Assumptions are written out so you can swap in your own numbers:

• System generates about 750 units a month
• Household consumes about 900 units a month
• About 300 units are used directly during daylight hours
• Grid tariff taken at Rs. 55 per unit, export at Rs. 11 per unit

Same panels, same sunshine, same house. The bill roughly triples, because the 450 units going out of the house are no longer worth what the 600 units coming in cost.

Where a battery changes the arithmetic

Now add a 10 kWh lithium battery to the same house. Instead of exporting the afternoon surplus at Rs. 11, you store it and use it after sunset, replacing units you would otherwise buy at Rs. 55.

Roughly 270 units a month move from the export column into the self-consumption column:

That is a difference of roughly Rs. 11,800 a month, from storage alone. Under the old net metering rules the same battery would have saved you almost nothing, because the grid was already acting as a free battery. That is the part people find counter-intuitive: the policy change did not make batteries better, it made the alternative worse.

This is also why LiFePO4 lithium batteries have moved from a luxury item to the part of the system that carries the payback. Cycle life matters here — a battery that is charged and discharged every single day needs to survive several thousand cycles, which is where lithium separates itself from tubular lead-acid.

If you already have net metering

You are protected, with one important catch.

NEPRA confirmed in April 2026 that consumers holding a valid agreement from before 9 February 2026 keep their existing billing arrangement until that agreement expires. You do not get moved onto net billing mid-contract.

The catch is expansion. Under the amendment, any modification that increases your system’s maximum output causes you to forfeit the tariff benefit of the old arrangement. Adding a few panels to an existing net-metered system can therefore cost you far more than the panels are worth. If you are thinking about expanding, work out the numbers on the new terms first.

Two further points worth knowing: distribution companies have been authorised to move consumers onto the new policy once a contract expires, and the amendment carries retrospective effect from 9 February 2026.

If you are installing solar now: three rules

1. Size the system for your own consumption, not for export

The old instinct was to fit as many panels as the roof allowed, because every surplus unit came back at full value. That instinct now costs money. Look at when your house actually uses electricity, and size the array to cover that load with a modest margin, rather than to maximise total generation.

2. Budget for storage from day one

Retro-fitting a battery later usually means replacing the inverter too. It is cheaper to buy a battery-ready system once than to buy most of one twice.

3. Choose a hybrid inverter, not an on-grid inverter

An on-grid inverter has nowhere to put surplus except the grid, which is exactly the transaction that is now worth Rs. 11. A hybrid inverter can charge a battery, run your loads and interact with the grid, and it keeps working during load shedding. For most Pakistani homes in 2026 the hybrid is the default choice and the on-grid unit is the exception.

Common questions

Is solar still worth installing in Pakistan?

Yes — but the return now comes from the units you avoid buying, not the units you sell. A well-sized system paired with storage still displaces electricity that costs Rs. 40 to Rs. 60 per unit, and that is a substantial saving. What no longer works is the oversized, export-heavy system that was popular in 2023 and 2024.

Should I cancel a net metering application that is already submitted?

Not without checking where it sits in the process. The cut-off is tied to the agreement date, so an application already in progress may or may not fall under the old terms. Confirm the status with your distribution company before making a decision.

Does this affect off-grid systems?

No. If you are not connected to the grid for export, these regulations do not apply to you. Off-grid and pure backup systems are unaffected.

Will the Rs. 11 buyback rate change?

It can. The export price is linked to the National Average Energy Purchase Price, which is revised periodically, and the policy itself has already been amended once since February. Treat the figure as current guidance rather than a fixed number, and check the notified rate before signing anything.

What to do next

If you are planning a new system, start from your electricity bill rather than from your roof. Work out how many units you use, when you use them, and how many of those units you could realistically cover yourself. That number decides the inverter size and the battery size, and everything else follows from it.

We supply hybrid solar inverters from 1.2KW up to 125KW and wall mounted LiFePO4 lithium batteries, and we are happy to work through the sizing with you before you commit to anything. You can talk to us here, or browse the full product range with specifications and datasheets.

Related reading

• Hybrid, on-grid or off-grid inverter: which one does your house need?
• What size solar inverter do you need? A load guide for Pakistani homes
• Lithium vs tubular batteries: the real ten-year cost

The figures in this article are indicative and are used to illustrate how the new mechanism works. Tariffs vary by slab, region and distribution company, and NEPRA regulations are subject to amendment. Confirm current rates and your own eligibility with your distribution company before making a purchase decision.