Net Metering to Net Billing in Pakistan (2026)
Complete & Updated Guide for HAZECO Solar Consumers
For many years, solar consumers in Pakistan benefited from Net Metering under NEPRA’s 2015 regulations. This framework encouraged thousands of households and businesses to invest in solar energy by offering unit-to-unit adjustment of electricity exported and imported from the grid.
However, on 9 February 2026, a major regulatory shift took place. NEPRA introduced Prosumer Regulations, 2026, replacing Net Metering with Net Billing. This decision triggered widespread concern, public criticism, and eventually direct intervention from the Prime Minister.
This article explains the complete picture, including background, changes, amendment, government position, and impact on HAZECO solar consumers.
Net Metering Framework Before 9 February 2026 (2015 Regulations)
Before February 2026, solar consumers were governed under:
NEPRA (Alternative & Renewable Energy) Distributed Generation and Net Metering Regulations, 2015
Issued by National Electric Power Regulatory Authority.
How Net Metering Worked
- Electricity exported to the grid and imported from the grid was adjusted on a unit-to-unit basis
- One exported unit fully offset one imported unit
- Only the net units were billed
Example
- Units imported from grid: 400
- Units exported to grid: 300
The consumer was billed for 100 units only.
This system made solar financially attractive and resulted in large-scale investment across Pakistan.
Introduction of Prosumer Regulations 2026 on 9 February 2026
On 9 February 2026, NEPRA notified:
National Electric Power Regulatory Authority (Prosumer) Regulations, 2026
Notification date: 9 February 2026
Reference: S.R.O. 251(I)/2026
Issued under: Section 47 read with Section 7(1) of the Regulation of Generation, Transmission and Distribution of Electric Power Act, 1997 NEPRA Prosumer Regulations.
What Changed
- Net Metering Regulations, 2015 were repealed
- Net Billing was introduced
- Unit-to-unit adjustment was discontinued
What Is Net Billing Under Prosumer Regulations 2026
Under Net Billing:
- Electricity imported from the grid is billed at full applicable consumer tariff
- Electricity exported to the grid is purchased by DISCOs at National Average Energy Purchase Price (NAEPP)
- Exported units are credited in rupees, not units
Example Under Net Billing
- Imported units: 400
- Exported units: 300
- Consumer tariff (import): Rs. 50 per unit (approximate 2026 mid-range rate)
- NAEPP export purchase price: Rs. 8.13 per unit
Calculation:
- Import bill: 400 × 50 = Rs. 20,000
- Export credit: 300 × 8.13 = Rs. 2,439
Final payable bill: Rs. 17,561
Under old net metering, the same consumer would have been billed for only 100 net units — approximately Rs. 5,000. The difference illustrates why existing consumers sought protection and why system design for new installations must prioritise self-consumption over export.
Public Reaction After Notification of Prosumer Regulations 2026
Following the 9 February 2026 notification:
- Strong public concern was expressed across multiple forums
- Existing solar consumers highlighted that they had invested millions and billions of rupees under a different policy framework
- Parliamentarians openly criticised NEPRA and the Power Division
- Net-metering consumers demanded protection of their existing contracts
Due to this pressure, the matter was escalated to the Prime Minister.
Prime Minister’s Intervention and Directions
On the directions of Prime Minister Shehbaz Sharif, the Power Division formally approached NEPRA to re-examine the Prosumer Regulations, 2026.
According to a senior official of the Power Division, the Prime Minister issued clear instructions to safeguard existing solar consumers.
Prime Minister’s Key Directions
- Ensure all possible protections for existing net-metering consumers
- Develop a comprehensive mechanism so that:
- Approximately 466,000 solar consumers
- Do not unfairly transfer financial burden onto over 38 million national grid consumers
Power Division’s Position and Concerns
While supporting protection for existing solar consumers, the Power Division also clarified that:
- Non-solar consumers are bearing an additional burden of approximately Rs. 2.87 per unit in 2026 according to Power Division data presented to NEPRA, with projections indicating this could rise to Rs. 5.35 per unit by 2034 under the old framework
- Rapid solarisation poses a constant operational risk to the national grid, especially regarding load management and stability
This is why the government maintained that Net Billing must apply to new consumers, even if existing consumers are protected.
Request Submitted by Power Division to NEPRA
In compliance with the Prime Minister’s instructions, the Power Division formally requested NEPRA to:
For Existing Consumers
- Protect consumers holding valid net-metering licences as of 9 February 2026
- Continue billing under repealed 2015 Net Metering Regulations
- Allow DISCOs to temporarily continue the old net-metering mechanism
- Maintain protection until expiry of existing agreements
- Consumers with valid pending applications submitted before 8 February 2026 (totalling 5,165 applications for 250.822 MW) to also be considered under old net metering terms
For New Consumers
- Apply Prosumer Regulations 2026 (Net Billing) without exception
- No unit-to-unit adjustment for new solar installations
Amendment in Prosumer Regulations 2026
To remove ambiguity, NEPRA issued an amendment draft titled:
Amendment in NEPRA (Prosumer) Regulations, 2026
Draft amendment published by NEPRA on February 16, 2026 for 30-day public consultation. Deemed effective from 9 February 2026
What the Amendment Clarifies
- Approvals, licences, concurrences, and agreements executed before 9 February 2026 remain valid
- Existing net-metering consumers will continue to be billed under the old mechanism till agreement expiry
- After expiry, renewals will fall under Prosumer Regulations 2026
- New consumers remain fully subject to Net Billing
Impact on HAZECO Solar Consumers
Existing HAZECO Solar Consumers
- Net-metering benefits continue
- No immediate billing change
- Legal protection exists through amendment
- Agreement date and expiry are critical
- Export credit rate remains at Rs. 25.32 per unit until agreement expiry
- Agreement term remains seven years as originally contracted
New HAZECO Solar Consumers
- Net Billing applies from day one
- Exported energy has lower financial value
- System design should prioritise daytime self-consumption
- Oversized systems may reduce economic return
- Export credit rate is Rs. 8.13 per unit
- New agreements are for five years, renewable by mutual consent instead of the previous seven years
Final Conclusion
Net Metering has effectively ended for new solar consumers in Pakistan. For existing consumers, due to strong public reaction, Prime Minister’s intervention, and NEPRA’s draft amendment deemed effective from 9 February 2026, legal protection remains in place until agreement expiry.
For new HAZECO consumers considering solar, the economics have changed significantly — exported units are now credited at Rs. 8.13 per unit while grid imports are billed at the full applicable tariff. System design should prioritise self-consumption over export to maximise savings under net billing.
For existing HAZECO consumers, your priority is to know your agreement expiry date, confirm your export credit rate on your bill, and verify your billing method with your DISCO. Your current terms remain protected — but only until your agreement expires, after which net billing applies automatically.
FAQs
Q1: Is net metering completely banned?
No. Existing consumers with valid agreements before 9 Feb 2026 can continue till agreement expiry.
Q2: I installed solar in 2024. Will my billing change?
No, if your net-metering agreement is valid, you are protected.
Q3: I am planning solar now. Which system applies?
Net Billing only under Prosumer Regulations 2026.
Q4: Will export units still reduce my bill?
Yes, but differently depending on your status. Existing consumers continue receiving Rs. 25.32 per unit for exports under their current agreement. New consumers receive Rs. 8.13 per unit — credited in rupees, not units.
Q5: Can DISCOs change my agreement suddenly?
No. Existing contracts are protected under NEPRA’s draft amendment deemed effective from 9 February 2026. DISCOs cannot unilaterally alter valid agreements before expiry.
Q6: Is solar still worth installing?
Yes, but the economics have changed for new installations. A system sized to cover your own daytime consumption — rather than one designed to export surplus — will deliver the best return under net billing.
Q7: What should HAZECO consumers check?
- Agreement start & expiry date
- Export credit rate on bill
- Billing method mentioned on meter reading
- Whether your application was submitted before 8 February 2026 — if so, you may qualify for old net metering terms