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Aftab Maken
ISLAMABAD: The National Electric Power Regulatory Authority (NEPRA), acting on government directions, has prepared a draft proposing sweeping changes to Pakistan’s net metering framework that would significantly reduce the benefits for solar prosumers. Under the proposed rules, the allowable solar system capacity, contract duration and the rate paid for surplus electricity supplied to the grid would be cut by nearly half.
NEPRA has issued the draft “Prosumers Regulations 2025” and invited public feedback within 30 days. Once finalized, the existing Alternative and Renewable Energy Distributed Generation and Net Metering Regulations, 2015 will be repealed.
According to NEPRA, the changes aim to prevent financially strained and inefficient power distribution companies (DISCOs) from moving towards insolvency, while maintaining a balance between the interests of consumers and utilities. The regulator says the objective is to protect consumers from high electricity tariffs, without allowing solar power to turn into a purely profit-making business.
Key proposed changes
Reduced solar capacity limit:
Under the new rules, prosumers will not be allowed to install solar capacity exceeding their sanctioned load. This effectively reduces allowable capacity by around 50 percent. For example, a consumer with a 10 kW sanctioned load will only be able to install a 10 kW solar system. Currently, installations of up to 150 percent of sanctioned load are permitted, allowing a 10 kW consumer to install up to 15 kW. Existing consumers will not be affected until the expiry of their current seven-year agreements.
Shorter contract duration:
The tenure for new net metering agreements will be reduced from seven years to five years. These contracts may be renewed for an additional five years with mutual consent of the DISCO and the consumer, but renewal will not be automatic.
Lower buyback rate for surplus power:
The rate for electricity exported to the grid will no longer be around Rs26 per unit. Instead, it will be linked to the National Average Energy Purchase Price (NAEPP), which is approximately Rs13 per unit. Recent policy adjustments have reportedly pushed this rate even lower, to around Rs10 per unit.
Expanded regulatory scope
The proposed regulations will apply to all systems ranging from 1 kW to 1 MW, bringing them under NEPRA’s direct licensing authority. Currently, systems below 25 kW are licensed by DISCOs.
Technical and operational changes
The draft also introduces stricter technical requirements and revised billing mechanisms to better integrate distributed generation into the national grid and ensure system stability. Notable provisions include:
- Transformer-level capacity cap: New applications will not be accepted if distributed generation connected to a transformer reaches 80 percent of its capacity.
- Mandatory load flow studies: Required for larger systems of 250 kW and above.
- Defined timelines: Strict timelines for connection charges and interconnection installations.
Context and sector outlook
Just last week, NEPRA termed the performance of DISCOs as “poor,” noting that heavy taxes, levies and surcharges are driving electricity prices higher and pushing consumers towards off-grid and decentralized energy solutions.
According to NEPRA, on-grid solar capacity in Pakistan has already exceeded 6,000 MW, while total solar capacity, including off-grid installations, has crossed 13,000 MW.
Energy experts warn that while the proposed measures may slow the rapid expansion of rooftop solar, they could also discourage investment in renewable energy and undermine clean energy goals. NEPRA says the final decision will be taken after reviewing public feedback on the draft regulations.
