Net metering · Faisalabad, Lahore, Punjab
Net Metering in Pakistan 2026: How the New Net Billing Rules Work
Short answer
Net metering closed to new applicants on 9 February 2026. New rooftop solar connections are on NEPRA's net billing rules: you pay your normal tariff for every unit you take from the grid, and every unit you export is credited at a much lower rate. Anyone with a net metering agreement, or who applied by 8 February 2026, keeps the old terms until the agreement expires.
This guide covers what changed, who is protected, what the new rules mean for system sizing, and how to apply through FESCO or LESCO. We last checked the policy facts on 13 October 2026. NEPRA can revise rates by notification, so confirm current figures before you sign anything.
What is net metering?
Net metering is a billing arrangement for consumers with solar on site. A two-way meter records units you import from the grid and units you export. Under the old Pakistani system, exported units were set off against imported units one for one, and you paid only for the net difference. If you exported more than you used, your distribution company (DISCO) bought the extra units at a fixed rate.
That one-for-one offset made net metering attractive: a unit exported at noon cancelled a unit imported at night, even though the night unit cost far more.
What changed on 9 February 2026
On 9 February 2026, NEPRA notified the NEPRA (Prosumer) Regulations, 2026 (SRO 251(I)/2026). They repealed the 2015 net metering regulations and replaced net metering with net billing for new connections.
| Rule | Old net metering (2015) | New net billing (2026) |
|---|---|---|
| How units are settled | Exported units offset imported units one for one | Imports billed at your normal tariff; exports credited separately at the national average energy purchase price |
| Agreement term | 7 years | 5 years, renewable by mutual consent |
| Maximum system size | Up to 1.5 times sanctioned load (reported) | Up to your sanctioned load; overall cap 1 MW |
| Who can apply | Three-phase consumers | Three-phase 400 V or 11 kV consumers |
| Transformer limit | — | No new applications once connected generation on a transformer reaches 80% of its rating |
| Large systems | — | Load flow study required at 250 kW and above |
| Surplus credit | Credited to the bill | Carried to the next 30-day bill or paid out quarterly |
The prosumer pays for interconnection, including metering, and the DISCO can use either one bidirectional meter or two separate meters.
The export rate
The regulation does not print a rupee figure. It links exports to the national average energy purchase price, which NEPRA may revise. When the rules were notified, major outlets reported the export rate at about Rs 10–11 per unit, against roughly Rs 26 under the old arrangement. In practice it currently sits at about Rs 10–11, and has gone as low as Rs 8. Grid units cost many households several times that. Ask us for the rate in force the week you apply.
The licence fee and small systems
- April 2026: NEPRA withdrew the licence requirement and fee for systems up to 25 kW, backdated to 9 February 2026. Systems above 25 kW still pay Rs 1,000 per kW.
- 6 August 2026: NEPRA amended the regulations so that facilities of 25 kW or below need approval from the DISCO rather than concurrence from NEPRA.
For most homes and small shops, that means one less office to deal with.
Who keeps the old net metering terms?
After strong public reaction and a review request from the Power Division, NEPRA moved to protect existing users. As reported in April 2026:
- Existing agreement holders are billed under the old rate and mechanism until their agreement expires.
- Applications filed up to 8 February 2026 are processed under the old rules.
- Renewals after expiry move to net billing.
- Changing your system capacity after 9 February takes you out of the old terms. LESCO has said consumers who increase net metering capacity are moved to net billing.
In September 2026 the Power Division reported that about 11,700 pending net metering cases had been cleared, and warned people not to pay anyone for faster processing.
If you already have net metering: do not add panels or change your inverter capacity without first checking what it does to your agreement.
Net metering rates in Pakistan: a worked example
Round illustrative numbers, not your tariff and not a forecast. In one month a home imports 500 units at night and exports 400 units at midday. Tariff Rs 50, export rate Rs 10.
Same home, same panels, two bills
Net metering
(500 − 400) units × Rs 50 = Rs 5,000
Net billing
(500 × Rs 50) − (400 × Rs 10) = Rs 21,000
The fix is self-use: every unit you use yourself saves the full Rs 50; every unit you export earns only the export rate.
| Old net metering | New net billing | |
|---|---|---|
| Units billed | 500 − 400 = 100 units at the tariff | 500 units at the tariff |
| Export credit | Already netted off | 400 units × export rate |
| Bill (Rs 50 tariff, Rs 10 export) | Rs 5,000 | Rs 21,000 |
Solar did not stop working. Each unit you use yourself is now worth your full tariff, while each unit you export is worth far less.
How net billing changes system sizing
Under net metering, many people oversized and used the grid as a free battery. Under net billing, good design focuses on self-consumption.
- Size to your daytime load first. Look at what runs between roughly 9 AM and 4 PM: ACs, motors, pumps, office or factory machines. Panels that feed those loads directly save you the full tariff.
- Be careful with surplus. Extra panels whose output mostly goes to export earn only the export rate. They may still pay back, but more slowly.
- Consider a battery for evening load. Storing midday surplus for use after sunset is worth your full tariff. See the lithium battery price and the battery sizing guide.
- Shift loads where you can. Run washing machines, water pumps, irons or process loads at midday.
- For factories, look at the whole profile. Large daytime loads usually absorb most solar output, so net billing changes less. Storage can also help with peak demand and generator fuel. See industrial and commercial solar.
This is why hybrid systems have become more common; compare the options in hybrid vs on-grid vs off-grid solar. For a starting size, try the solar calculator, then the solar system price guide.
Single-phase homes
The regulations make net billing available to three-phase 400 V or 11 kV consumers. Many smaller homes in Punjab are single-phase. To export, you may need a three-phase connection first, which is a separate application to your DISCO. At present, DISCOs are generally not approving new three-phase meters on shared transformers. They ask for a dedicated transformer of at least 25 kW, which costs roughly Rs 1.25 to 2 million depending on the DISCO, the substation and the site. If you only want to cut your own bill, a self-use system with export limited can still work, with no new transformer.
The application process (FESCO and LESCO)
The Prosumer Regulations set timelines that DISCOs must follow:
- Collect information. The DISCO gives you the forms free within 2 working days.
- Submit the application with panel and inverter details, a single-line diagram, your CNIC and a recent paid bill in the applicant's name. LESCO also requires the inverter serial number and manufacturer to be registered.
- Acknowledgement of receipt and completeness within 5 working days.
- Technical review within 15 working days. If the connection is not feasible (for example, the transformer is at its 80% limit), the DISCO must give reasons.
- Agreement signed within 7 working days of approval.
- Cost estimate and payment: estimate within 7 working days; you pay within 7 working days.
- Meter and commissioning within 15 working days of payment.
- Approval: up to 25 kW by the DISCO; larger systems need NEPRA concurrence and the Rs 1,000 per kW fee.
LESCO reported in June 2026 that applications after 9 February go through its Net Billing Portal. The FESCO website (fesco.com.pk) has no separate net billing portal; applications go through your FESCO subdivision or customer service centre. Either way, we prepare and submit the file for you. For the document checklist, meter types and practical tips, read the green meter and FESCO/LESCO application guide.
Green meter price in Pakistan
"Green meter" is the common name for the bidirectional meter. LESCO stopped buying bidirectional green meters in September 2025 and now installs AMI smart meters on solar connections. Under the 2026 regulations, the prosumer pays the metering cost, which varies by DISCO and connection type. The amount is on your DISCO's demand notice; WhatsApp 0336 666 4321 and we will tell you what to expect for your connection.
Net metering vs net billing vs gross metering
- Net metering: imports and exports are netted unit for unit.
- Net billing: imports and exports are valued at different rupee rates and the money is netted. Pakistan uses this for new connections since February 2026.
- Gross metering: all solar output is sold to the grid and all consumption bought from it. NEPRA proposed this in December 2025 but notified net billing instead.
Details in net metering vs gross metering vs net billing.
We file the application for you
Solar Works Pakistan designs every system in-house and installs with its own teams, from about 6 kW to megawatt scale, across Punjab. We size systems around your load and the current net billing rules, not the old one-for-one offset. We prepare and submit the net billing application and documents to FESCO or LESCO on your behalf, and our quotation lists the brand, model, quantity and manufacturer's warranty for each item, which is what the DISCO application needs.
Get today's price or a free site survey
Send us your last 12 months of electricity bills. We will look at your load, tell you honestly how net billing affects your case, and design a system around it.
- 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; see our Faisalabad and Lahore pages, or contact us. Site surveys are normally free. Founded in 2021, we have served 300+ customers, including 50+ industrial clients.
Frequently asked questions
Is net metering still available in Pakistan in 2026?
Not for new applicants. Applications from 9 February 2026 come under net billing. A valid agreement signed before then, or an application filed by 8 February 2026, keeps the old terms until the agreement expires.
What is the net metering rate in Pakistan now?
New prosumers get exports credited at the national average energy purchase price, currently about Rs 10–11 per unit and as low as Rs 8. Imports are billed at your normal tariff. NEPRA can revise the export rate, so confirm the current figure with us or your DISCO.
What is a green meter?
The meter that counts units in both directions. LESCO now installs AMI smart meters on solar connections instead of the older green bidirectional meters. It is installed at your cost after the application is approved.
How long is a net billing agreement?
Five years from commissioning, renewable by mutual consent. Old net metering agreements ran for seven years.
Can I install more solar than my sanctioned load?
No. Capacity cannot exceed your sanctioned load, with an overall cap of 1 MW. For a bigger system, apply to raise your sanctioned load first.
Will adding panels to my existing net metering system affect it?
It can. Changing capacity after 9 February 2026 moves you to net billing, according to reports and LESCO statements. Check before you expand.
Is there a NEPRA fee for net billing?
Systems up to 25 kW no longer pay the NEPRA licence fee and are approved by the DISCO. Systems above 25 kW pay a one-time Rs 1,000 per kW. DISCO connection and meter charges are separate.
Should I add a battery under net billing?
Usually yes for evening use: storing daytime solar for the evening saves the full tariff, while exporting it earns only the low export rate.
Is solar still worth it under net billing?
It can be, if the system is sized for self-use. Most of the value now comes from units you use yourself. Oversized systems that mostly export pay back more slowly.
Can a single-phase house get net billing?
The regulations refer to three-phase 400 V or 11 kV consumers. A single-phase home that wants to export usually needs a three-phase connection first, and DISCOs currently ask for a dedicated transformer of at least 25 kW (roughly Rs 1.25–2 million) rather than connecting new three-phase meters on a shared one. A self-use system can still cut your bill without export.
Sources
- NEPRA (Prosumer) Regulations, 2026, SRO 251(I)/2026, 9 February 2026.
- NEPRA, amendment to regulation 21 on existing agreements (2026); amendment SRO 1330(I)/2026 dated 6 August 2026 (25 kW approval by DISCO).
- Dawn, "Nepra pulls the plug on net-metering" (10 Feb 2026); Geo News (10 Feb 2026); Business Recorder (Feb 2026).
- pv magazine, "Pakistan blocks retroactive export rate cut in net billing shift" (25 Feb 2026).
- The News (19 Feb, 28 Apr, 24 Jun 2026); The Nation (3 Apr 2026); ARY News (2 Apr 2026).
- ProPakistani, "Govt clears nearly 12,000 pending solar cases" (6 Sep 2026).
- Daily Pakistan, LESCO smart AMI meters (11 Nov 2025); Profit (Pakistan Today), draft prosumer regulations and gross metering proposal (Dec 2025).