Pakistan’s long-awaited switch to net billing for solar has come into force, but an attempt to retroactively put net metering contract holders onto lower rates has been quashed by Prime Minister Shehbaz Sharif.
New regulations cut the rate for exporting solar to the grid from PKR 26 ($0.093) per kWh to PKR 13 per kWh. In the run up to changes coming into force on Feb 9. 2026, those with existing net metering contracts at the higher export tariff faced a sudden retroactive change to their agreement.
It was the result of Pakistan’s National Electric Power Regulatory Authority (Nepra) introducing the new regulations in a way that effectively shifted net metering consumers onto the new net billing model – meaning those with a net metering connection agreement would be paid the new lower rate despite installing their systems and securing a contract under more favorable terms.
One Pakistan-based source told pv magazine Nepra received wide criticism for the move, and a public backlash led to Prime Minster Sharif intervening. The Prime Minister ordered a restoration of the net metering billing mechanism for those with existing net metering contracts and Nepra has since issued a draft amendment to its initial regulations. The amendment would see net metering contract holders retain their current export tariff until their agreement expires. The draft amendment is backdated to apply on Feb. 9 and is subject to a 30-day public consultation.
Pakistan’s attempt to lower the tariff paid to consumers with net metering connections has been a long-running battle in response to turbulent economic conditions for the countries energy system. The Institute for Energy Economics and Financial Analysis (IEEFA) reported in 2024 that Pakistan’s net metering policy was offering two- to four-year payback periods for 5 kW to 25 kW systems. This left power utilities concerned that higher penetration of distributed solar could place the distribution infrastructure at risk of failure and increase capacity payments on non-net-metered consumers.
Growth for Pakistan's net metering bill also coincided with a surge in solar imports in recent years, although the vast majority of this capacity has not been installed in net metering installations – Islamabad-based think tank Renewables First found only 1% of consumers on Pakistan’s grid had a net metering connection in June 2025. Net metering connections have been to date concentrated in larger properties in more affluent areas, due to technical restrictions that meant only those with a three-phase connection could apply.
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