Guides · Faisalabad, Lahore, Punjab

Fixed Charges on Electricity Bills in 2026: Does Solar Still Help?

Short answer

Yes. Fixed charges on electricity bills in 2026 are charged per kW of your sanctioned load, and solar cannot remove them, but they are usually a smaller part of the bill than the units you buy, and solar cuts those units. For many homes, buying fewer units can also move you into a cheaper slab, which can lower both the per-unit rate and the fixed charge rate. The catch is sanctioned load: raising it to fit a bigger solar system also raises your fixed charge.

We checked the facts below on 14 October 2026. For how the rest of your bill is built, see how to read your electricity bill.

What changed in February 2026

Before 2026, most domestic consumers below 300 units paid little or no fixed charge. In February 2026 NEPRA approved, and the government notified, a new domestic schedule that added monthly fixed charges for nearly all households. Major outlets reported the charge as levied per kW of sanctioned load, not per connection.

The stated reasons were that the grid's fixed costs, such as capacity payments and network maintenance, were mostly being recovered through per-unit charges while grid sales were falling, partly because of rooftop solar. A fixed charge collects part of those costs whether you buy units or not. At the same time, some upper domestic slabs and industrial rates were cut slightly.

Diagram

Fixed charges in 2026

Domestic

Per kW of sanctioned load

ToU meters

50% of sanctioned load or MDI, whichever is higher

Fixed charges stay even when solar covers your units.

The fixed charges, as reported

CategoryMonthly unitsReported fixed charge (Rs per kW of sanctioned load, per month)
LifelineUp to 100None
Protected1-100200
Protected101-200300
Unprotected1-100275
Unprotected101-200300
Unprotected201-300350
Unprotected301-400400
Unprotected401-500500
UnprotectedAbove 500675

Source: press reporting on NEPRA's February 2026 decision and the notified schedule (see Sources). One outlet listed Rs 400 for the unprotected 101-200 band.

Three more rules were reported:

How to work out your own fixed charge

  1. Find sanctioned load on your bill (in kW).
  2. Find your category (protected or unprotected) and units for the month.
  3. Look up the rate for that slab in the table.
  4. Multiply: sanctioned load × rate.

Example arithmetic only, using the reported rates:

HomeSanctioned loadMonthly unitsRate per kWFixed charge per month
A2 kW150, protectedRs 300Rs 600
B5 kW450, unprotectedRs 500Rs 2,500
C10 kW, TOUMDI 6 kWRs 675 on the higher of 5 kW or 6 kWRs 4,050

GST and other levies apply on top, depending on your category. Check the line printed on your own bill.

Why solar cannot remove fixed charges

A fixed charge pays for being connected to the grid. As long as you keep the connection, you pay it, even in a month when solar covers most of your use. That applies under old net metering, new net billing, or a self-use system without export.

That is why your bill after solar will rarely be zero. If someone promises a "zero bill" from solar, ask them how they treat fixed charges.

Where solar still helps, and sometimes more than you expect

1. Units are still the bigger part of most bills

For Home B above, the fixed charge is Rs 2,500. The energy charge on 450 units, at an illustrative Rs 39 per unit, is about Rs 17,550 before adjustments and taxes. The units are about seven times the fixed charge. Solar works on that larger part.

2. Fewer units can mean a lower fixed charge rate

The fixed charge rate depends on your monthly slab. If solar brings Home B's grid units from 450 to 280, the reported rate falls from Rs 500 to Rs 350 per kW. On 5 kW, the fixed charge falls from Rs 2,500 to Rs 1,750 a month, on top of the lower per-unit rate.

3. For TOU users, a battery can reduce MDI

On TOU connections, the fixed charge uses the higher of 50% of sanctioned load or MDI. If your MDI is above half your sanctioned load because of an evening peak, a battery that supplies part of that peak can bring the charged demand down. Read what MDI means on your bill, and our battery sizing guide.

The sanctioned load trade-off

Under the 2026 net billing rules, your solar capacity cannot exceed your sanctioned load. Many homes therefore apply to raise sanctioned load before installing solar. Since fixed charges are per kW, that decision now has a monthly cost.

Example arithmetic only: raising sanctioned load from 5 kW to 10 kW, at an illustrative Rs 350 per kW, adds Rs 1,750 a month in fixed charges, about Rs 21,000 a year, before tax.

How to handle it:

Our net metering and net billing guide explains the capacity limit in full.

Should you go off-grid to avoid fixed charges?

Some people ask whether disconnecting from the grid avoids fixed charges. It does, but it is rarely the best answer for a Punjab home:

For most homes, a well-sized hybrid system with the grid kept as backup gives a better balance. Our guide to off-grid solar inverters explains when off-grid does make sense.

Putting it together

When you estimate what solar will save under the 2026 tariff:

  1. Keep the fixed charge in the "after solar" bill. Do not count it as a saving.
  2. Value self-used units at your full marginal rate, including the slab effect.
  3. Value exported units at the export rate, not your tariff.
  4. Add any change in fixed charge from a change in slab or sanctioned load, up or down.
  5. Use 12 months of bills, not one month.

Our guide to estimating solar payback walks through each step, and the solar calculator gives a starting size. For the wider picture of 2026 tariff changes, read electricity tariff 2026 and solar. If your household moves between protected and unprotected, read protected vs unprotected consumers and solar.

Solar Works Pakistan designs every system in-house, from about 6 kW to megawatt scale, and includes fixed charges and sanctioned load in the sums before we recommend a size.

Get today's price or a free site survey

Send us 12 months of bills with your sanctioned load visible. We will show you what solar can and cannot change on your bill.

Site surveys are normally free. Founded in 2021, Solar Works Pakistan has served 300+ customers, including 50+ industrial clients.

Frequently asked questions

Are fixed charges per kW or per connection in 2026?

Major outlets reported the 2026 domestic fixed charges as per kW of sanctioned load per month. A home with a larger sanctioned load pays more. TOU consumers pay on the higher of 50% of sanctioned load or maximum demand.

Does solar remove fixed charges from my bill?

No. Fixed charges are paid for staying connected to the grid, whether or not you buy units. Solar reduces the units you buy, which is usually the larger part of the bill.

Can solar lower my fixed charge?

It can, indirectly. The fixed charge rate depends on your monthly slab, so buying fewer units can move you to a lower rate. Confirm with your DISCO how the slab is set on a solar or net billing connection.

Should I increase my sanctioned load for solar?

Only as far as your design needs. Under net billing, solar capacity cannot exceed sanctioned load, but every extra kW now adds a monthly fixed charge. Size to self-use first, then decide.

Is it worth going off-grid to avoid fixed charges?

Rarely for a Punjab home. The extra batteries for nights and foggy winter days usually cost far more than the fixed charges saved, and you lose grid backup. A hybrid system with the grid kept is usually the better balance.

Are lifeline consumers charged fixed charges?

Lifeline consumers were reported as exempt from the 2026 fixed charges. Most homes with solar use far more than the lifeline limit, so they are not in this category.

Sources

  1. Dawn, "Fixed power charge to be levied per kW, not per connection" (11 Feb 2026)
  2. The News, "Nepra loads Rs132bn onto domestic bills to cut industrial tariffs" (12 Feb 2026)
  3. Profit (Pakistan Today), "Pakistan's power regulator introduces Rs200-675 fixed monthly charges for domestic consumers" (12 Feb 2026)
  4. Pkrevenue, "New schedule of fixed charges on electricity bills announced" (17 Feb 2026)
  5. Pakera, "Electricity unit price in Pakistan 2026: slab rates" (Oct 2026): https://pakera.pk/electricity-unit-price-slab-rates-pakistan-2026/