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NEPRA Shields Existing Solar Users, Keeps Net-Billing for New Connections

The move follows political pushback, featuring a draft that grants billing protection until contract expiry plus a 30-day public comment window.

Overview

  • NEPRA’s Prosumer Regulations 2026 replace one-to-one net metering with net billing for future users, requiring utilities to buy surplus solar at the national average energy purchase price and shifting to five-year contracts.
  • The regulator published a draft amendment deemed effective from February 9, 2026, confirming that existing net‑metering agreements will be honored until they expire.
  • Prime Minister Shehbaz Sharif directed a review to protect current contracts, and Power Minister Awais Leghari said the government will not seek to reverse net billing for new applicants.
  • Officials cite cross-subsidy concerns, noting roughly 466,506 existing prosumers—about 1% of consumers—and estimating last year’s impact on other users at Rs223 billion, with a projected Rs2.87 per unit this fiscal year.
  • Parliamentarians and industry stakeholders criticized the abrupt shift, warning of damage to investor confidence and predicting longer payback periods, slower rooftop solar uptake and potential moves toward battery storage.