ISLAMABAD (Kashmir English): The National Electric Power Regulatory Authority (NEPRA) of Pakistan has implemented comprehensive reforms for rooftop solar systems and small power generators by replacing the existing net metering system with a net billing system.
Existing solar users will maintain their present agreements, but new users must comply with stricter regulations that include reduced prices for their excess electricity sales. The initiative protects the national power grid while it converts solar energy into financial advantages.
From Net Metering to Net Billing
The solar metering system allowed customers to offset their electricity needs by using their solar power production. Customers could use the excess electricity they sent to the power grid to reduce their bills at almost full value. This made rooftop solar financially attractive for many households and small businesses.
The net billing system has established new operational procedures. Distribution companies will buy excess solar electricity from users at the National Average Energy Purchase Price (NAEPP), which currently stands at Rs 11 per unit. Customers will pay standard electricity grid rates, which vary between Rs 37 and Rs 55 per unit.
The system now handles exported and imported units as separate entities, which creates reduced financial advantages for users who utilize solar energy.
How Existing Users Will Be Affected
Existing prosumers- those already registered under net metering will keep their current seven-year contracts. Their exported electricity will continue to be valued at Rs 26 per unit, but credits will now be calculated monthly instead of quarterly.
The new system decreases the instant monetary benefits that early adopters used to receive.
Rules for New Solar Users
The system currently provides financial benefits that are less valuable than the previous system because the company gives new users five-year contracts, which include electricity payments at Rs 11 for each unit they export.
The new rules establish stronger boundaries that determine the maximum system size: Solar installations cannot exceed the consumer’s sanctioned load. Systems above 250kW require a mandatory load flow study.
Distribution companies cannot approve new connections if the total solar capacity on a transformer reaches 80% of its rated capacity. Prosumers must bear all interconnection costs, including meters and grid upgrades.
Officials say the changes were made because distributed solar systems became more widespread, which created operational challenges for the national grid system and raised costs for people who do not use solar energy.
The current on-grid solar capacity reaches approximately 7000MW, while off-grid systems surpass 13000MW. NEPRA believes the new regulations will stabilize the grid system while offering small-scale power producers standardized procedures to follow.
