Is this is End of Net Metering in Pakistan? Big Changes

In recent weeks, Pakistan solar policy has entered the spotlight with bold changes. The federal government, through the National Electric Power Regulatory Authority (NEPRA) and the Power Division, is considering reducing the buy-back rate paid to solar net metering users.

The new rates will be from around Rs 22 per unit to nearer Rs 10 per unit and even officials are considering to ending the net metering in Pakistan, meaning solar users would have to consume all the electricity they produce instead of selling extra power back to the grid.

Read more: How net metering work in Pakistan

Why the Government Wants Change?

The Power Division and NEPRA (the National Electric Power Regulatory Authority) are reviewing the policy because of financial and technical pressures on the power sector.

1. Revenue Loss for Power Companies: In 2024, Pakistan’s distribution companies reportedly lost around 3.2 billion units of grid sales, equal to Rs 101 billion in lost revenue, as more people switched to solar.
2. Unfair Burden on Non-Solar Consumers: Officials argue that when solar users export energy and still rely on the grid for backup, the cost of maintaining the grid shifts to other consumers. In other words, people without solar panels end up paying more to keep the system running.
3. Cheaper Utility Scale Solar Projects: Large solar power plants are now producing electricity for below Rs 10 per unit. The government questions why rooftop users should be paid double that rate for their exports.
4. Grid Stability Concerns: In low-demand months (especially winter), too much exported solar power can cause reverse flow problems in the grid. Officials say this creates technical risks and wasted generation capacity.

Learn more: Solar panel prices in Pakistan

What is the New Plan of Net Metering in Pakistan?

• The buy-back rate may drop from Rs 22 to around Rs 10–11 per unit.
• The export payment system could be phased out, meaning new solar users might not receive money or credits for surplus electricity.
• Existing users may continue under their current contracts for now, but the government has not yet confirmed how long that protection will last.
• Prime Minister Shehbaz Sharif has asked NEPRA and the Power Division to review the impacts carefully before final approval.

So, while the final decision isn’t official yet, it’s clear that major changes are coming to how solar energy is valued in Pakistan.

Final Thoughts

The proposed drop to Rs 10 per unit and the possible end of buy back payments marks a big shift in Pakistan’s solar policy. The government’s goal is to make electricity prices fairer for all and to stabilize the grid. But for many solar users, it feels like the rules are changing mid game.

Solar will still be valuable for reducing bills and energy dependence, but its financial returns will depend more on how much of your own energy you can use directly. In the long run, Pakistan will need a balance: encouraging solar growth while keeping the grid financially sustainable. Whatever happens, one thing is clear the era of easy earnings from net metering in Pakistan may soon be coming to an end.