Last updated: September 2026

Pakistan Net Metering Explained

With grid electricity among the most expensive in the region and abundant sunshine, rooftop solar with net metering is one of Pakistan's best household investments. But the rules — NEPRA buyback rates, DISCO approvals, the 3-phase meter requirement — confuse many buyers. This guide walks through the system and the rupee math as it stands in 2026.

How net metering works

Under NEPRA's net metering regulations, your bi-directional meter tracks both imported and exported units. At billing time, exported units are netted against imported units:

Import units are billed at your normal tariff slab (Rs 35–65+/unit for most urban domestic consumers in 2026, depending on slab and DISCO).
Export units earn a buyback credit. The buyback rate has been the subject of policy debate: historically around Rs 19–27/unit, with NEPRA moving toward lower rates (~Rs 9–11/unit) for new net metering licences — while existing licence holders were initially grandfathered. Confirm the current rate for new applicants with your DISCO before sizing your system, because it materially changes the math.
Netting happens on your monthly bill; persistent net exporters can carry credits forward, but the system is designed around offsetting your own consumption, not becoming a power producer.

The players: NEPRA, DISCOs and AEDB

NEPRA sets the regulations and the buyback tariff.
Your DISCO (LESCO, IESCO, K-Electric, MEPCO, FESCO, PESCO, etc.) processes your application, inspects the installation and installs the bi-directional meter.
AEDB-licensed installers: use a certified vendor — DISCOs require compliant equipment (inverters on the approved list) and proper documentation, and uncertified installs get rejected at inspection.

The application process

Apply to your DISCO with your latest bill, CNIC copy, property documents and proposed system size.
Technical review: the DISCO checks your sanctioned load and transformer capacity. System size is typically capped at 1.5× your sanctioned load (and residential systems commonly run 5–15 kW).
NEPRA generation licence: issued for net metering systems (your installer usually handles the filing).
Install and inspect: after installation, the DISCO inspects and installs the bi-directional (import/export) meter.
3-phase meter: net metering requires a 3-phase connection — single-phase consumers must convert, which adds cost and a DISCO procedure.

Timelines vary wildly by DISCO and city — from 4 weeks to 4+ months. Ask your installer for recent timelines with your DISCO before paying a deposit.

The rupee math: a worked example

10 kW system in Lahore (yields ~1,500–1,700 kWh/kWp/year in Punjab):

System cost: ~Rs 1.6–2.0 million installed in 2026 (Rs 160,000–200,000/kW for quality Tier-1 panels and a branded inverter)
Annual production: ~15,000 units
Household consumption: 800 units/month = 9,600 units/year at ~Rs 45 average = Rs 432,000/year grid bill
Self-consumption: ~40% (6,000 units) × Rs 45 avoided = Rs 270,000/year
Export: 9,000 units × Rs 10 buyback (new-licence rate) = Rs 90,000/year
Total benefit: ~Rs 360,000/year → payback in ~5 years on a Rs 1.8M system

Note how the buyback rate shapes this: at the old ~Rs 20+ rate, payback was closer to 3–4 years. At lower new rates, self-consumption is everything — size the system to your daytime load, run heavy appliances at midday, and consider that an EV or air-conditioning load dramatically improves the numbers.

Costs and pitfalls

Panel quality matters more in Pakistan's heat: high temperatures cut panel efficiency — Tier-1 panels with good temperature coefficients and proper ventilation under the array pay off.
Dust and smog: Lahore/Karachi soiling can cut output 5–15% — budget for monthly cleaning, more in dusty areas.
Inverter choice: hybrid inverters cost more but allow battery backup during load-shedding; on-grid inverters shut down when the grid fails (anti-islanding).
Load-shedding reality: net metering does not give you power during outages unless you have a hybrid inverter + batteries.
Sanctioned load: if your sanctioned load is small, you may need a load extension before installing a meaningful system size.

Frequently asked questions

What is the NEPRA net metering buyback rate in 2026?

Historically Rs 19–27 per exported unit; NEPRA has moved toward ~Rs 9–11 for new licences. Existing licence holders were initially grandfathered at older rates. Confirm the current new-applicant rate with your DISCO — it is the single biggest variable in payback.

Do I need a 3-phase meter for net metering?

Yes — net metering requires a 3-phase connection and a bi-directional meter. Single-phase consumers must convert, which adds cost and processing time with the DISCO.

How long does DISCO approval take?

Anything from 4 weeks to 4+ months depending on the DISCO and city. Ask your installer for recent real timelines with your specific DISCO before committing.

Does solar work during load-shedding?

Standard on-grid net metering systems shut down during outages for safety. For backup during load-shedding you need a hybrid inverter with batteries — a separate investment decision.

What size system can I install?

Typically up to 1.5× your sanctioned load. Most urban homes install 5–15 kW. Size to your daytime consumption rather than your roof — surplus export earns far less than self-consumed units save.

Run your own numbers with our Pakistan net metering calculator — system size, slabs, buyback rate and payback in rupees.

This guide is for information only and is not professional financial advice.