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NEPRA Retains Net-Metering Policy for Existing Solar Consumers Amid Regulatory Reform

The National Electric Power Regulatory Authority (NEPRA) has announced that it will retain the net-metering framework for all current solar consumers in Pakistan, offering reassurance after recent policy changes sparked debate over the future of rooftop solar incentives.

In a formal notification, the regulator clarified that existing net-metering agreements, including licenses, approvals, and tariffs, will remain in force until they naturally expire, shielding thousands of households and businesses from changes introduced under the new regulations.

The notification, effective from February 9, 2026, also launches a 30-day window for public feedback and stakeholder input on draft amendments to the Prosumer Regulations 2026, which govern solar-grid interactions and compensation mechanisms.

Policy shift sparked public and political reaction

The updated solar policy comes on the heels of broader regulatory reforms that replaced the decade-old net-metering regime with a net-billing framework. Under the original proposal, surplus electricity generated by solar consumers would be purchased at market-linked rates rather than being credited one-for-one against grid consumption, a move that attracted criticism over reduced financial incentives for renewables.

That shift also included adjustments like shortening contract durations for new applicants from seven years to five and revising how excess power is credited, elements that raised concerns over long-term returns on investment for solar adopters.

Government and regulator respond to concerns

Following a public backlash and interventions from senior officials, including direction for a review of the policy’s impact, NEPRA’s latest decision ensures that current solar consumers will not see their terms altered mid-contract.

Stakeholders affected by the change include residential, commercial, and industrial solar users who installed distributed generation systems under the existing net-metering regime. Experts note that net metering has been a key driver of rooftop solar adoption in Pakistan, which has seen installed net-metering capacity grow significantly in recent years.

The opening of a public consultation period aims to balance the regulator’s objectives of grid stability and fair pricing with the interests of solar investors and consumers.

What this means for solar consumers

  • Existing net-metering users: Will keep their current agreements and compensation mechanisms until contractual expiry.
  • New applicants: Will fall under the updated Prosumer Regulations once finalized and may see different billing and compensation structures.
  • Policy feedback window: Stakeholders have 30 days to submit formal input on proposed amendments.

The move reflects growing regulatory attention on balancing incentives for solar expansion with broader concerns about grid sustainability and cost allocation in Pakistan’s energy sector.

Pride of Pak

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