Net metering vs net billing — the 2026 change
On 9 February 2026 NEPRA notified SRO 251(I)/2026 — the Prosumer Regulations 2026, replacing the 1:1 net-metering rule that had been in force since 2015 with a net-billing model.
- Net metering (until 9 Feb 2026) — every kWh exported was credited at the same retail tariff you paid for imported units. Effectively a 1:1 swap.
- Net billing (from 9 Feb 2026) — you pay full retail tariff for any unit imported from the grid (~PKR 40–60/unit depending on slab) and receive only the National Average Energy Purchase Price for exports (currently around PKR 11/unit).
- Grandfathering — existing prosumers with agreements signed before 9 Feb 2026 keep the old buyback rate (typically PKR 22–27/unit) for the life of their contract. The roughly 5,000+ pending applications submitted before that date also retained the old rate.
The practical takeaway: new builds in 2026 should favour self-consumption — daytime-heavy load matching, modest battery sizing, and right-sized arrays — rather than oversized export-heavy systems.
What we file and pay on your behalf
- Application form (NEPRA prosumer application via your DISCO).
- Single-line diagram stamped by a PEC-licensed engineer.
- Equipment specification sheets for the panels and inverter.
- Inverter test report showing anti-islanding and grid-protection compliance.
- Concurrence fee — PKR 1,000 per kW (NEPRA-set) plus DISCO processing fees.
- Demand notice fees — up to PKR 21,000 single-phase / higher three-phase.
- AMI smart-meter cost — approximately PKR 70,000.
- Site inspection coordination with the DISCO meter inspection team.
- Final agreement signing once approved.
You sign documents and pay the line items above. Everything else — chasing case numbers, attending DISCO meetings, follow-up calls — is on us.
Process timeline
- Days 1–3 — documentation pack. We prepare drawings, specs, and the application after your system design is locked.
- Days 4–10 — DISCO submission + concurrence fee. Application filed; case number issued.
- Days 10–30 — DISCO review. Technical review, potential clarifications. We respond on your behalf.
- Days 30–45 — site inspection. DISCO inspector confirms installation matches the approved drawings.
- Days 45–60 — AMI meter installation. Bidirectional smart meter installed; agreement signed.
- System energised — exports begin counting from the day of meter activation.
DISCO coverage by region
| DISCO | Service area |
|---|---|
| LESCO | Lahore, Kasur, Okara, Sheikhupura, Nankana Sahib |
| IESCO | Islamabad, Rawalpindi, Jhelum, Chakwal, Attock |
| GEPCO | Gujranwala, Sialkot, Gujrat, Hafizabad, Narowal, Mandi Bahauddin |
| FESCO | Faisalabad, Jhang, Sargodha, Toba Tek Singh, Mianwali, Khushab, Bhakkar |
| MEPCO | Multan, Bahawalpur, Bahawalnagar, Dera Ghazi Khan, Muzaffargarh, Rahim Yar Khan, Vehari, Sahiwal, Khanewal, Lodhran, Layyah, Rajanpur |
| HESCO | Hyderabad and lower Sindh |
| SEPCO | Sukkur, upper Sindh, Larkana |
| QESCO | Balochistan (entire province) |
| PESCO | Khyber Pakhtunkhwa |
| TESCO | Former FATA / merged tribal districts |
Frequently asked questions
How long does the net-metering or net-billing application take in Pakistan?
Typically 30 to 60 days from documentation submission to AMI smart-meter activation. LESCO and IESCO are usually fastest in Punjab metros. Outliers can take longer if the DISCO requests clarifications or if site inspection scheduling slips.
Can I still get the old 1:1 net-metering rate?
Only if your application was submitted before 9 February 2026 — the cutoff date in NEPRA's Prosumer Regulations 2026. New applications after that date are processed under net billing, with exports credited at roughly PKR 11/unit instead of the old retail-rate swap.
What documents do I need to provide?
CNIC of the applicant, electricity bill (showing your reference number and connection capacity), property documents proving ownership or NOC from the owner, and authorisation letter for us to file on your behalf. We provide the technical drawings, equipment specs, and inverter test reports.
How much will I pay in fees?
Concurrence fee: PKR 1,000 per kW. Demand notice: up to PKR 21,000 single-phase. AMI smart meter: approximately PKR 70,000. Plus DISCO processing fees that vary by region. We itemise all fees in the quotation so there are no surprises.
Do I need a 3-phase connection for net metering?
For systems above 5 kW yes — most DISCOs require a 3-phase connection upgrade. Below 5 kW a single-phase connection works. If you need to upgrade we'll coordinate with the DISCO during the application.
What if my system was installed but never net-metered?
Common in 2019–2022 era installs. We can file the net-metering or net-billing application retroactively for any compliant system. We inspect the existing install first to confirm the inverter is grid-tie and anti-islanding compliant, then file the documentation.
Does net billing make solar a bad investment now?
No — solar is still strongly economic for Pakistani buyers in 2026. The optimisation just shifts: rather than oversizing for export, you size to maximise self-consumption, often pairing with a small battery. See our hybrid solar page for the recommended 2026 architecture.