The new solar net metering policy introduces significant changes for new solar consumers while protecting most existing prosumers until 2030-31.
Approximately 80–85% of current rooftop solar users will continue to operate under the existing net metering framework. Most of these connections were approved during FY2024-25. They will continue selling surplus electricity to the grid at Rs 25.32 per unit under a seven-year contract.
However, new rooftop solar users will move to a net billing mechanism. Under this system, they can sell electricity to the grid at Rs 10–11 per unit under a five-year contract.
At the same time, domestic, commercial, and industrial solar users will purchase grid electricity at slab-based tariffs ranging from Rs 34 to Rs 60 per unit.
How the Revised Rooftop Solar Net Metering Policy Impacts Consumers
Officials say the updated structure balances investment recovery with grid sustainability. Under the new mechanism, solar users can recover their investment within three to five years. Previously, some users recovered costs in about 18 months.
Importantly, the grid will now receive compensation for providing storage and system support. In the earlier framework, many prosumers effectively used the grid as a virtual battery without incurring the corresponding fixed charges.
According to official figures, rapid rooftop solar growth led to a 3.2 billion-unit decline in grid electricity sales in FY2024. This reduction resulted in an estimated Rs. 101 billion revenue loss for power distribution companies.
As a result, other electricity consumers faced an average tariff increase of Rs. 0.90 per unit.
Read: Pakistan Ends Net Metering, Introduces New Net Billing Rules
Power Division projections warn that if trends continue, lost grid sales could rise to 18.8 billion units by FY2034. That would translate into a Rs545 billion financial impact and a possible tariff increase of Rs5–6 per unit.
On-grid rooftop solar capacity has expanded rapidly. It grew from just 5MW in 2017 to 6,975MW in 2026. Projections suggest this figure could reach 14,319MW by 2034.
Off-grid solar capacity has already exceeded 13,000MW. It is expected to rise further to 18,944MW by 2034.
Officials note that the expansion of off-grid and hybrid systems has doubled the number of protected electricity consumers from 11 million to 22 million. This shift has increased the subsidy burden and created structural distortions within the power sector.
If the previous net metering regime had continued unchanged, cumulative financial impacts between 2025 and 2034 could have reached Rs4,360 billion. Under the revised mechanism, projections estimate this impact will decline to Rs2,134 billion over the same period.
