ISLAMABAD:
The National Electric Power Regulatory Authority (Nepra) is set to move ahead with the plan of switching from net metering to net billing, which can spark a backlash from consumers.
Earlier, the Power Division attempted twice to revise the solar net metering policy but it pulled back following strong criticism from consumers and other stakeholders. Now, it has shifted the burden to the regulator.
The power-sector regulator is scheduled to hold a public hearing on Friday to consider views of proponents and opponents of the proposed policy shift. The focus of the hearing will be on the draft Prosumer Regulations 2025, published on December 16, 2025, as part of efforts to reshape Pakistan’s renewable energy framework.
Net metering allows consumers to receive full credit for the energy they generate. In contrast, net billing credits consumers at a lower rate for the energy they supply to the grid, meaning they are compensated less for surplus energy.
By compensating these consumers at a reduced rate, the net billing ensures that the grid remains financially viable, helping balance the interests of solar and non-solar consumers. It also encourages efficient use of solar energy while easing the burden on grid-dependent users.
The draft provides guidelines on the integration of distributed generation facilities, such as solar, wind and biogas, with Pakistan’s electricity grid. These regulations define roles and responsibilities of prosumers, licensees and Nepra, focusing on the application process, interconnection standards and billing procedures.
The regulations aim to establish a fair framework for both small-scale producers and the broader energy sector, ensuring safety, technical feasibility and effective integration with the grid.
Nepra’s Prosumer Regulations 2025 have triggered both support and concerns from various stakeholders. While some industry experts and governmental bodies have endorsed the changes, emphasising their long-term benefits for grid stability and financial sustainability, others have voiced concern over solar energy momentum.
The Private Power and Infrastructure Board (PPIB) has expressed strong support for the shift from net metering to net billing, calling it a “progressive step” towards a more balanced, transparent and sustainable framework for distributed energy resources (DERs). PPIB highlighted that the changes would offer a reasonable compromise between promoting solar energy and safeguarding the interests of non-solar consumers. Similarly, GIZ (Deutsche Gesellschaft fur Internationale Zusammenarbeit), which is advising Nepra on the revisions, praised the regulations for incorporating smart grid solutions and promoting digitalisation in the power sector.
According to GIZ, the regulations are designed to improve operational efficiency, integrate renewable energy seamlessly and support environmental sustainability efforts in line with Pakistan’s long-term energy and climate commitments. Those in favour specifically emphasised the necessity of aligning renewable energy contributions with grid stability and supported the gradual integration of solar power with stricter export controls to avoid overloading the grid.
Amidst endorsements, the proposed regulations have faced opposition as well from several solar stakeholders, with critics raising concerns over the financial consequences for consumers. Siddiq Renewable Energy Ltd, a major player in Pakistan’s solar industry, expressed concern that the new buyback rates may render rooftop solar investments economically unviable. According to it, this policy shift will hamper solar adoption, extend payback periods, while discouraging investment in clean energy.
The Karachi Chamber of Commerce & Industry (KCCI) also voiced concern, claiming that the net billing framework would create an unfair disparity between the buyback price and the retail electricity price. According to the chamber, prosumers will be forced to export solar energy at rates much lower than what they pay for grid electricity, essentially creating a “solar tax” on those who are trying to play their part for the environment.
