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Aftab Maken
ISLAMABAD: In a move aimed at calming market jitters and addressing mounting public concern, the National Electric Power Regulatory Authority (NEPRA) has issued a draft amendment to its Prosumer Regulations 2026, making it clear that existing solar net metering consumers will face no changes to their current arrangements.
The regulator has opened the draft for public consultation, giving stakeholders 30 days to submit comments and objections before the framework is finalized.
Existing Investors Get Full Protection
At the heart of the draft is a strong reassurance: all previously approved agreements, licenses, and concurrences granted to existing solar net metering users will remain fully protected. These prosumers will continue to operate under their original terms, tariffs, and procedures until their contracts expire.
In practical terms, rooftop solar users who invested under the earlier regime will continue enjoying the same unit-for-unit adjustment mechanism. Distribution companies (DISCOs) will keep purchasing surplus electricity under the established net metering structure, ensuring no financial disruption or retrospective policy shock.
The clarification comes after widespread apprehension triggered by the earlier notification — SRO 251(I)/2026 dated February 9, 2026 — through which NEPRA replaced the 2015 Alternative & Renewable Energy Distributed Generation and Net Metering Regulations with a new Prosumer framework.
Shift from Net Metering to Net Billing
The 2026 regulations introduced a structural shift from traditional net metering to a net billing model for new distributed generation facilities — primarily solar installations, but also small-scale wind and biogas projects up to 1 megawatt capacity.
Under the new structure:
- Exported surplus electricity will be compensated at the National Average Energy Purchase Price (NAEPP), currently around Rs10–11 per unit.
- Imported electricity will be billed at the applicable retail tariff, ranging roughly between Rs37 and Rs55 per unit (excluding taxes and surcharges).
This effectively ends the previous one-to-one unit adjustment benefit for new entrants, significantly altering the economics of rooftop solar investments going forward.
What May Change for New Applicants
The draft amendment outlines several potential modifications for future applicants, including:
- Implementation of net billing instead of net metering
- Lower export compensation rates compared to earlier unit offsets
- Shorter contract durations — possibly five years instead of seven
- Quarterly payments for surplus electricity rather than real-time billing adjustments
- Stricter capacity caps, limiting installations to the sanctioned load of the premises
According to the regulator, these adjustments are designed to improve transparency, ensure grid stability, align small-scale generation with national energy pricing realities, and safeguard the financial sustainability of the power sector.
Balancing Reform with Investor Confidence
The policy recalibration appears to be a balancing act. On one hand, the government faces mounting pressure to address grid financial stress and cross-subsidy distortions. On the other, rooftop solar adoption has surged in recent years as consumers seek protection from rising electricity tariffs.
The earlier 2015 regime offered generous incentives, enabling many households and commercial consumers to virtually eliminate monthly bills through unit-for-unit offsets. With rising solar penetration, however, distribution companies have raised concerns about revenue shortfalls and grid management challenges.
By “grandfathering” existing prosumers, NEPRA appears intent on preserving investor confidence while gradually restructuring incentives for future installations.
Public Consultation Now Open
NEPRA has uploaded the full draft amendment on its official website and invited input from consumers, solar industry players, energy experts, and other stakeholders. Comments must be submitted to the NEPRA Registrar within 30 days of publication.
The final outcome of this consultation process could significantly shape Pakistan’s distributed solar landscape at a time when the country is striving to reduce dependence on imported fuels, manage circular debt pressures, and advance climate commitments.
For now, existing rooftop solar users can breathe easier. Their investments remain shielded — at least until their contracts run their course.
As the regulatory dust settles, the bigger question remains: can Pakistan redesign its solar incentives without slowing the momentum of its renewable transition?
