Pakistan's Shift from Net Metering to Net Billing Regulations

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Net billing

The recent major shift in Pakistan's renewable energy policy as the National Electric Power Regulatory Authority (NEPRA) transitions from net-metering to a net-billing framework. This regulatory change drastically reduces the buyback rates for surplus solar energy, cutting them from roughly Rs26 to approximately Rs11 per unit, while shortening future contract lengths to five years. The government aims to protect the state-owned power grid and manage capacity charges caused by the rapid surge in solar adoption, which has exceeded 19,000MW in total capacity. For homeowners and businesses, these new rules place a premium on self-consumption and require specific protection equipment, such as circuit breakers and surge devices, to secure utility approval. Despite these stricter financial terms and system size limits, analysis suggests that solar investments remain viable with payback periods generally staying under five years. The provided materials include official news reports, technical installation guidelines, and financial impact studies to help "prosumers" navigate this evolving energy landscape.

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