On 21 February 2026, NEPRA notified SRO 251(I)/2026and replaced Pakistan’s 10-year-old net metering regime with a new net billing tariff. The headline change: the rate at which DISCOs buy back your exported solar energy dropped from Rs 25–32/unit to a fixed Rs 8–11/unit— a 60–70% cut. Within 72 hours every solar WhatsApp group in Pakistan was on fire.
The good news: solar still pays back, often faster than any other investment available to a Pakistani household. The bad news: the old “oversize and export everything” playbook is dead. This guide explains what actually changed, who’s affected, the new economics, and how to redesign your system so net billing doesn’t eat your savings.
What changed: SRO 251(I)/2026 in plain English
Under the old net meteringregime (NEPRA 2015 regulations), your bidirectional meter simply spun backwards when you exported. Every exported unit cancelled an imported unit one-for-one at the same retail tariff. If you exported 300 units and imported 400, you paid for 100 net units — at full retail.
Under the new net billing regime, the two flows are separated:
- Imported units are billed at the full applicable retail slab (Rs 22–65+ per unit before FPA/GST).
- Exported units are credited at the National Average Power Purchase Price (NAPPP), set by NEPRA at Rs 10/unit for FY2026.
- The two amounts are reconciled on your monthly bill; any net credit carries forward but is not paid out in cash.
Old vs new at a glance
| Parameter | Net Metering (pre Feb 2026) | Net Billing (post Feb 2026) |
|---|---|---|
| Buyback rate | Rs 25–32/unit (= retail tariff) | Rs 8–11/unit (= NAPPP) |
| Settlement | 1:1 at meter | Separate import & export totals |
| Cash payout for surplus | Yes, annual | No — credit only, no cash |
| Licence validity | 5 years + 5 renewal | 5 years + 5 renewal (unchanged) |
| Capacity cap | Up to sanctioned load | 10 kW residential / 25 kW commercial (proposed) |
| FPA on export side | Netted out | Charged on import side only |
Who is affected (and who isn’t)
The cut-off date for grandfathering is the date your net metering licence was issued by your DISCO, not your application date.
- Existing net metering consumers (licence issued before 21 Feb 2026):You remain on the old 1:1 net metering tariff for the remaining life of your licence. Most licences run 5 years and can be renewed once for another 5 — so existing users have 5–10 years of grandfathered benefit ahead of them.
- Pending applications (filed before 21 Feb 2026, licence not yet issued): Treated under net billing. NEPRA explicitly clarified this in its 4 March 2026 circular, despite industry protest.
- New applicants (from 21 Feb 2026 onwards): Net billing only.
- K-Electric consumers: KE was given a 30-day implementation window; new K-Electric licences issued from 22 March 2026 are under net billing.
The new economics: self-consumption vs export
The single most important number under net billing is your self-consumption ratio— the share of solar energy you use directly instead of exporting.
Take a typical 5 kW system in Lahore generating ~22 units/day. Under the old regime, the maths was simple: all 22 units offset retail at Rs 28 = Rs 616/day. Under net billing, the value depends on when you use it:
| Scenario | Self-consumed units | Exported units | Daily value |
|---|---|---|---|
| Empty house all day, AC at night | 4 (fans, fridge, motor) | 18 | 4 × Rs 60 + 18 × Rs 10 = Rs 420 |
| WFH family, daytime cooling | 15 | 7 | 15 × Rs 60 + 7 × Rs 10 = Rs 970 |
| WFH + hybrid battery (5 kWh) | 20 | 2 | 20 × Rs 60 + 2 × Rs 10 = Rs 1,220 |
The same system delivers roughly 3x the value depending on usage pattern. This is why hybrid systems with battery storage suddenly make sense at the residential level — and why right-sizing matters far more than it did under net metering.
What you should do
1. Shift consumption to daylight hours
Free money. Run your washing machine, dishwasher, water motor and pool pump between 10 am and 4 pm. Pre-cool your house with AC at 2 pm rather than 8 pm. Charge your EV during the day. Every unit you shift saves Rs 50+ versus exporting then importing.
2. Resize for self-consumption, not annual offset
The old rule of thumb (size at 1.3x peak month consumption) leaves you exporting 30–40% of generation for Rs 10 instead of using it at home for Rs 60. New rule: size to roughly 65–75% of your average daily consumption for a no-battery system. Our Solar System Designer defaults to net-billing logic since March 2026.
3. Add a battery if you’re on slab 4+
For homes consuming over 400 units/month, the gap between import tariff (Rs 60+) and export rate (Rs 10) is wide enough that a 5–10 kWh LiFePO4 battery pays for itself in 3–4 years on its own. Add it on day one rather than retrofitting — hybrid inverters cost roughly the same as on-grid inverters now (Rs 95k vs Rs 80k for 5 kW). See our battery backup guide for sizing.
4. Apply early if you’re close to ready
There is ongoing industry pressure to revise the Rs 10/unit rate upward, but the next NEPRA review window is July 2026. If you already have rooftop space and the budget, getting a licence under the current regime locks in the Rs 10/unit floor — future revisions are unlikely to go lower.
5. Run the new numbers before you sign
Many installers in March 2026 were still quoting payback figures based on net metering. Always recompute the return using net billing assumptions. The Net Billing Calculator uses the actual SRO 251 numbers and your real consumption pattern; the AI Bill Analyzer can extract your usage curve from a single PDF bill.
Common myths after SRO 251
- “Solar is dead in Pakistan.”No. Payback simply shifted from ~2.5 years to ~5 years. That is still a 20% IRR over 25 years — far better than fixed income, real estate or any conventional savings product available locally.
- “I should rush a sale before policy worsens.”Don’t. The damage is mostly done; further cuts would face severe industry and political resistance. Take time to right-size.
- “Off-grid is now the answer.”Almost never. Off-grid means heavy oversizing and a 2x battery bank. The TCO is 30–50% higher than hybrid with net billing in nearly every residential scenario we’ve modelled.
Related reading
- Net Metering Application Guide (DISCO-wise) — updated for net billing.
- Best Solar Inverters Pakistan 2026 — the hybrid models worth considering.
- Battery Backup Sizing Guide — LiFePO4 picks and sizing math.
- Solar ROI & Payback 2026 — updated payback tables under net billing.
FAQ
What is net billing and how is it different from net metering?
Net metering credited every exported solar unit at full retail tariff (Rs 25–32). Net billing splits the flows: you pay full retail for imports and are paid only Rs 8–11/unit for exports. The two are settled on the bill, not netted at the meter.
Are existing net metering consumers grandfathered?
Yes. Licences issued before 21 February 2026 stay on the old regime for the remaining 5+5 years of validity. Only new applicants from that date forward are on net billing.
What is the new buyback rate in 2026?
NEPRA set the national reference at Rs 10/unit (NAPPP) for FY2026, with DISCO-specific values from Rs 8 to Rs 11. Old net metering offset was effectively Rs 25–32 — a 60–70% reduction in export value.
Does solar still make sense under net billing?
Yes, if you size for self-consumption rather than export. Direct-use units still displace Rs 60+ retail. Payback shifts from 2–3 years to 4–6 years — still better than any 5-year financial product in Pakistan.
Should I add a battery to fight net billing?
For most slab 4+ homes (400+ units/month), yes. A 5–10 kWh LiFePO4 battery captures the 6x gap between import (Rs 60) and export (Rs 10) rates and typically adds only 1–1.5 years to payback while lifting 25-year savings by Rs 8–12 lakh.
How should I size my system differently under net billing?
Old rule: size to annual consumption (1.3x peak). New rule: size to 65–75% of average daily consumption for no-battery, or full consumption with a hybrid battery. Oversizing now hurts: surplus units worth Rs 60 in self-use are sold for Rs 10.
When did SRO 251(I)/2026 take effect and is it being challenged?
Notified 21 February 2026, applies to all new applications from that date. PSIA and REAP filed a constitutional challenge in the Lahore High Court in March 2026; the interim stay was declined. The Rs 10/unit rate is reviewed annually.