Net billing · Faisalabad, Lahore, Punjab
Net Metering vs Gross Metering vs Net Billing: What's the Difference?
Short answer
Net metering vs gross metering comes down to one question: is the solar power you use yourself counted before the grid gets involved? Under net metering, exports cancel imports unit for unit. Under gross metering, all solar output is sold to the grid and all consumption is bought back at the retail tariff. Pakistan uses neither for new connections. Since 9 February 2026 it uses a third model, net billing, which sits between the two.
Policy facts below were last checked on 13 October 2026. For the full rules, see our net metering and net billing guide.
What is net metering?
A bidirectional meter records units imported from the grid and units exported to it. At the end of the billing cycle, the two are netted unit for unit. You pay only for the difference. Solar you use directly in your home never touches the meter, so it saves you the full tariff.
This was Pakistan's system under the 2015 NEPRA regulations, with seven-year agreements. It still applies to consumers who had a valid agreement before 9 February 2026, or who applied by 8 February, until their agreement expires.
Three ways to bill solar
Net metering
Units netted one for one. Closed to new users since 9 Feb 2026.
Net billing
Imports at your tariff; exports at about Rs 10–11 (as low as Rs 8). Pakistan now.
Gross metering
All output sold, all use bought. Proposed Dec 2025, not adopted.
What is gross metering?
Under gross metering, all of the solar output is metered and sold to the utility at a fixed buyback rate. All of your consumption is bought from the utility at the retail tariff, even units your own panels produced. The two are separate transactions.
Gross metering treats a rooftop system like a small power plant. You are a seller and a buyer at the same time, with no self-consumption benefit.
In December 2025, NEPRA's draft Prosumer Regulations proposed moving new rooftop solar to gross metering, with a buyback rate reported at about Rs 11.30 per unit. That is not what was finally notified.
What is net billing?
Net billing is what NEPRA notified on 9 February 2026 in the Prosumer Regulations, 2026.
- Solar you use directly in your premises still saves you the full tariff. That is the key difference from gross metering.
- Units you import are billed at your normal tariff.
- Units you export are credited at the national average energy purchase price, currently about Rs 10–11 per unit, and as low as Rs 8.
- The two values are netted in rupees, not units. A surplus credit carries to the next bill or is paid quarterly.
Side-by-side comparison
| Net metering | Net billing | Gross metering | |
|---|---|---|---|
| Self-used solar | Saves full tariff | Saves full tariff | Sold at buyback rate, then bought back at tariff |
| Exported units | Offset imported units 1:1 | Credited at a lower rupee rate | All output sold at buyback rate |
| What is netted | Units | Rupees | Nothing; two separate bills |
| Value to the consumer | Highest | Middle | Lowest |
| Status in Pakistan | Closed to new applicants since 9 Feb 2026; existing agreements continue | Applies to new connections from 9 Feb 2026 | Proposed in Dec 2025 draft; not adopted |
| Agreement term | 7 years (old agreements) | 5 years, renewable | — |
A worked example
The numbers below are round and illustrative only. They are not your tariff, and they do not forecast anyone's bill.
Assume one month for a home:
- Solar produces 800 units.
- 400 units are used directly in the house during the day.
- 400 units are exported.
- At night the house imports 500 units from the grid.
- Total consumption is therefore 900 units.
- Assume a tariff of Rs 50 per unit and an export rate of Rs 10 per unit.
| Model | Calculation | Bill |
|---|---|---|
| Net metering | (500 − 400) × 50 | Rs 5,000 |
| Net billing | (500 × 50) − (400 × 10) | Rs 21,000 |
| Gross metering | (900 × 50) − (800 × 10) | Rs 37,000 |
| No solar | 900 × 50 | Rs 45,000 |
Three things stand out:
- Net billing is far better than gross metering because the 400 units used directly are still worth the full Rs 50.
- Net billing is worse than net metering because exported units earn Rs 10 instead of cancelling a Rs 50 unit.
- Under net billing, every unit you shift from export to self-use is worth Rs 40 more in this example. That is the design lesson.
What this means for your solar system
Because self-use is worth much more than export, good design under net billing:
- Matches panel capacity to your daytime load. Your system also cannot exceed your sanctioned load under the 2026 rules.
- Moves flexible loads to midday: pumps, washing, ironing, and for factories, batch processes.
- Adds a battery where the evening load justifies it, so midday surplus is used after sunset instead of exported. See lithium battery prices.
- Chooses the right system type. Our hybrid vs on-grid vs off-grid guide explains which suits which household.
Factories with heavy daytime loads usually use most of their solar output on site, so net billing affects them less. See industrial and commercial solar.
To estimate your own self-use, start with the solar calculator. For the meter and FESCO/LESCO paperwork, read our green meter and application guide.
Get today's price or a free site survey
Solar Works Pakistan designs every system in-house around your load and the current rules, from about 6 kW to megawatt scale. Send us your last 12 months of bills and we will show you how much of your solar you would use yourself.
- WhatsApp or call: 0336 666 4321
- Email: info@solarworks.pk
- Head office: Main Boulevard, Sargodha Rd, Block F FDA City, Faisalabad
- Lahore branch: 2nd Floor, Jeff Heights, Gulberg, Lahore
- Hours: 9:00 AM to 6:00 PM, daily
- We serve all of Punjab. Contact us.
Frequently asked questions
What is the main difference between net metering and gross metering?
Net metering lets you use your own solar first and nets exports against imports unit for unit. Gross metering sells all solar output to the grid at a fixed rate and bills all consumption at the retail tariff. Net metering is almost always worth more to the consumer.
Does Pakistan use gross metering?
No. NEPRA proposed gross metering in a December 2025 draft, but the regulations notified on 9 February 2026 use net billing instead.
Is net billing the same as gross metering?
No. Under net billing, solar you use directly still saves you the full tariff. Only exported units are credited at the lower rate. Under gross metering, even self-used solar is sold at the low rate.
I already have net metering. Do I have to switch?
No. Valid agreements made under the old rules continue on the old rate and mechanism until they expire. Renewals then move to net billing. Changing your system capacity can also move you to net billing, so check with your DISCO first.
Which is better for me under the new rules, on-grid or hybrid?
If most of your use is in the daytime, on-grid can still work well. If you have a large evening load, a hybrid system with a battery lets you use your own solar at night instead of exporting it cheaply. A site survey and your bill history are the best way to decide.
Sources
- NEPRA (Prosumer) Regulations, 2026, SRO 251(I)/2026 (copy hosted by K-Electric)
- Profit (Pakistan Today), "NEPRA proposes shift from net to gross metering for new rooftop solar consumers" (22 Dec 2025)
- Daily Pakistan, "Explained: Pakistan's new net metering policy and gross metering" (22 Dec 2025): https://en.dailypakistan.com.pk/22-Dec-2025/explained-pakistans-new-net-metering-policy-and-gross-metering
- Dawn, "Nepra pulls the plug on net-metering" (10 Feb 2026)
- The Nation, "Reversing earlier decisions, Nepra exempts pre-Feb 9 prosumers from new regulations" (3 Apr 2026)