The government has reportedly decided to revise the net metering policy for solar power consumers across the country, introducing a new regulatory framework aimed at shifting from net metering to a net billing system, sources said.
According to officials, the revised framework has been titled the NEPRA Solar Consumer Regulations 2025. The Ministry of Energy has approved the new policy after consultations with stakeholders, including power distribution companies and the power regulator.
NEPRA sources said the immediate introduction of net billing will replace the existing net metering mechanism. Under the new rules, the duration of solar power purchase agreements will be reduced from seven years to five years. Instead of additional surcharges under net metering, solar consumers will now receive a per-unit adjustment under the net billing system.
Sources said the proposed purchase price for solar electricity under net billing will be around Rs11 per unit. Previously, solar consumers were benefiting from a rate of Rs25.98 per unit under the net metering mechanism.
Officials further said that under the new policy, consumers with a load of less than 25 kilowatts will be required to obtain a licence from NEPRA. Earlier, domestic, commercial and industrial consumers with systems up to 25 kilowatts were exempted from licensing requirements.
According to sources, the Ministry of Energy, distribution companies and NEPRA completed the procedural work after several months of consultations. The ministry informed the federal government that continuation of the existing system was no longer feasible without policy changes.
Commenting on the development, a spokesperson for the Ministry of Energy said the determination of solar tariffs falls under NEPRA’s regulatory mandate. The spokesperson added that the policy shift would not significantly impact consumers and confirmed that the net billing system would be implemented in place of net metering.
