Energy · NEPRA Prosumer Regulations
Pakistan has moved rooftop solar from net metering to net billing. The difference sounds technical and is not: it changes what your exported units are worth, and for new consumers the buyback rate has fallen sharply.
The short version: under net metering, exported units offset imported units at roughly the same value. Under net billing, imports are charged at the full retail tariff while exports are credited at a lower separate rate, reported at around Rs 8– 13 per unit for new consumers, against retail rates far above that.
Net metering versus net billing
The distinction is the whole story, so it is worth being precise.
Net metering treats your meter as running in both directions. A unit you export effectively cancels a unit you import. Because both sides are valued at broadly the same rate, a system sized to your annual consumption could bring a bill close to zero.
Net billing separates the two flows. You buy imported electricity at the full retail tariff and you sell exported electricity at a different, lower rate. The two are settled against each other in money rather than in units.
| Net metering | Net billing | |
|---|---|---|
| Imported units | Charged at retail | Charged at retail |
| Exported units | Offset against imports at similar value | Credited at a lower buyback rate |
| Settlement | In units | In money |
| Effect on payback | Faster | Slower |
The numbers that matter
Reported figures for new consumers put the buyback rate at roughly Rs 8 to Rs 13 per exported unit, against grid electricity costing substantially more per imported unit. Previously, export was credited at rates reported around Rs 25 to Rs 27.
Treat any single figure with care: buyback rates, reference tariffs and contract terms are set by regulation and revised, and what applies to you depends on when your connection was approved. The direction, however, is not ambiguous.
The economics have not collapsed. They have shifted from exporting surplus to using what you generate.
What this does to the payback calculation
Under net metering, oversizing a system was rational: every surplus unit was worth close to a retail unit, so generating more was close to pure gain. Under net billing, a surplus unit is worth substantially less than a unit you consume yourself.
That single change reverses several rules of thumb.
- Self-consumption is now the priority. A unit you use as you generate it is worth the full retail rate you avoid paying. A unit you export is worth the buyback rate. The gap between those two numbers is the entire argument.
- Right-sizing beats oversizing. Systems built to cover daytime load now make more sense than systems built to spin the meter backwards.
- Load-shifting genuinely pays. Running washing machines, water pumps and irons during daylight converts low-value exports into high-value avoided imports.
- Battery storage becomes more attractive than it was, because storing surplus for evening use captures retail value instead of buyback value, though batteries have to be weighed against their own cost and lifespan.
Does rooftop solar still make sense?
For most households with meaningful daytime consumption, yes, but for a different reason than before. The case used to be partly about selling to the grid. It is now almost entirely about not buying from it.
Panel costs have moved in the consumer’s favour, with per-watt rates falling this year, which offsets some of the loss on the export side. Subsidised routes also exist, the Punjab CM’s free solar panel scheme is aimed at lower-consumption households.
Before you sign anything
- Ask the installer to model your daytime consumption specifically, not your monthly total. The two produce very different recommended system sizes under net billing.
- Get the applicable buyback rate and contract term in writing, and confirm which regulatory regime your connection falls under.
- Be sceptical of payback periods quoted from net metering-era assumptions. If a proposal assumes export is worth close to retail, it is out of date.
- Check your actual usage pattern against your bill first, your online bill history is the cheapest data you will get.
The wider context
Grid tariffs have climbed steeply over the past decade, which is what made rooftop solar spread so quickly and, in turn, is part of why the rules changed: large volumes of highly-compensated export shift costs onto consumers who cannot install panels. Net billing is the regulator’s answer to that. Whether it is the right balance is a fair argument, but for a household deciding this month, the practical response is the same. Size for your own daytime load, and use what you make.
Frequently asked questions
What is the difference between net metering and net billing?
Net metering offsets exported units against imported units at similar value. Net billing charges imports at the full retail tariff and credits exports at a separate, lower buyback rate, settling the two in money rather than units.
How much is the solar buyback rate now?
Reported figures for new consumers are around Rs 8 to Rs 13 per exported unit, down from rates previously reported around Rs 25 to Rs 27. Confirm the rate applicable to your own connection.
Does this apply to existing net metering customers?
Terms depend on when your connection was approved and the contract you signed. Existing agreements are generally honoured for their stated term, but you should confirm your position with your distribution company.
Is solar still worth installing in Pakistan?
For households with meaningful daytime consumption, generally yes, but the value now comes from avoiding expensive imported units rather than from selling surplus to the grid.
Should I install a battery?
Batteries are more attractive under net billing because stored energy used in the evening avoids a retail-priced import rather than earning a low buyback rate. Whether they pay depends on battery cost and lifespan.
Should I still oversize my system?
Generally no. Under net billing, surplus export is worth much less than self-consumed generation, so sizing to your daytime load usually beats building for maximum export.
How can I get more value from my existing system?
Shift heavy loads, washing, pumping, ironing, into daylight hours. Every unit consumed as generated avoids a full retail charge instead of earning the lower export rate.
