Govt introduces changes to solar net metering policy, launches new billing system

ISLAMABAD: The government has announced major changes to the solar energy policy, including a shift from the existing net metering system to a new net billing framework for solar consumers. The updated policy, named the Nepra Solar Consumer Rules 2025, has been approved by the Ministry of Energy following consultations with relevant stakeholders.

According to sources from the National Electric Power Regulatory Authority (Nepra), the new rules will reduce the duration of solar contracts from seven years to five years. Under the net billing system, solar consumers will receive a fixed per-unit price for the electricity they generate, instead of the previous arrangement under net metering, where consumers were credited for each unit fed back into the grid. The per-unit rate under the new system has been set at approximately Rs. 11.

The revised policy also introduces new licensing requirements. Previously, domestic, industrial, and commercial consumers generating electricity from solar systems with loads up to 25 kW were exempt from obtaining a license from Nepra. Under the new rules, obtaining a license will be mandatory for all solar installations, regardless of size, including those under 25 kW.

Officials say the changes aim to create a more structured and sustainable framework for solar energy adoption, ensuring fair compensation for energy supplied to the grid while maintaining regulatory oversight.

Energy experts suggest that the shift from net metering to net billing could impact the financial incentives for small-scale solar consumers, but it is expected to improve the overall management of distributed solar generation in the country.

The Nepra Solar Consumer Rules 2025 are expected to come into effect in the coming months, with solar consumers advised to familiarize themselves with the new licensing and billing requirements.