Nepra releases draft solar net metering rules amid public backlash

solar electricity

Islamabad – The National Electric Power Regulatory Authority (Nepra) has issued a draft of its 2026 solar power regulations, reopening discussions on net metering after widespread public criticism of the revised rules introduced earlier this month.

In an official statement, Nepra said: “The Authority is pleased to publish the draft amendment to the National Electric Power Regulatory Authority (Prosumer) Regulations, 2026 for eliciting public opinion.” The regulator invited stakeholders to submit comments on the proposed draft to the Nepra registrar within 30 days, available on its official website.

The draft clarifies that existing solar net metering consumers will not be affected by the changes, with current agreements remaining valid until their expiry. According to the amendment:

“Notwithstanding the repeal effected by these regulations, nothing shall affect approvals granted, licences or concurrences issued and agreements executed under the repealed regulations before the commencement of these regulations, and any distributed generator having a valid agreement executed under the repealed regulations shall be billed in accordance with rate and mechanism provided in the repealed regulations till the expiry of the term of the agreement executed under the repealed regulations.”

The regulation is considered effective from February 9, 2026, with retrospective effect.

Key Changes in Net Metering Rules

The controversial reforms introduced by Nepra fundamentally alter electricity pricing for prosumer solar users. Under the Nepra (Prosumer) Regulations, 2026:

• Power utilities must purchase surplus electricity from households, businesses, and industries generating up to 1 MW at the national average energy purchase price.

• Electricity sold back to prosumers will be billed at the applicable consumer tariff, ending the previous one-to-one offset model.

• Standard contract terms are reduced to five years from seven, renewable by mutual consent.

• Existing agreements remain under their original terms, but all future connections and renewals will follow the new five-year net billing framework.

• Any surplus electricity value exceeding consumption will either be adjusted in the next bill or paid to prosumers every three months.

The reforms have sparked debate over their impact on the economics of distributed solar generation, as shorter contracts and changes in billing may influence long-term investment returns.

Nepra’s draft aims to balance regulatory oversight with consumer protection, inviting public input to finalize the 2026 solar net metering framework.