Pakistan’s Net Metering Update 2025: Key Changes

Thursday, 18 December 2025 | Web Desk

Solar power has transformed how Pakistanis generate electricity. The key benefit for homeowners has been net metering—a system allowing you to sell surplus solar energy back to the grid. However, new draft regulations from NEPRA propose significant changes.

The Proposed Changes at a Glance:

Reduced Buyback Rate: The major shift is the proposed payment for excess electricity sent to the grid. It would drop to the National Average Energy Purchase Price (around Rs. 13/unit), nearly half the current ~Rs. 26/unit rate.
System Size Cap: New installations will be capped at 100% of your approved electricity load, down from the previous 150% allowance.
Shorter Contracts: New contracts would last 5 years (instead of 7), with extensions subject to mutual agreement with your power distribution company (DISCO).
Grid Capacity Limits: DISCOs may halt new applications if local transformer-level solar capacity reaches 80%, citing grid stability.

Important: Current solar net metering users are protected. Existing contracts will continue under old rules until their 7-year term expires.

Why the Change?
NEPRA states the revisions aim to ensure grid stability and financial sustainability, as rapid solar adoption (over 6,000 MW grid-connected) changes national power dynamics.

How Classic Net Metering Works:
A bi-directional meter tracks:

Export Units: Surplus solar energy you send to the grid.
Import Units: Power you draw from the grid at night or on cloudy days.
Your bill is calculated on the net difference (Import – Export), leading to major savings or even a zero balance.

Basic Requirements for Installation:

A grid-tied or hybrid solar system.
A three-phase meter.
A minimum system size of 3 kW.

Bottom Line:
Net metering remains a powerful way to slash electricity bills and gain energy independence. However, the proposed 2025 regulations suggest reduced financial returns for new future adopters. If you’re considering solar, it’s prudent to finalize plans under the existing, more favorable framework.

Public feedback on the draft is invited, signaling this is a pivotal moment for solar policy in Pakistan.