Islamabad – A recent decision by the National Electric Power Regulatory Authority (Nepra) to replace net metering with net billing for rooftop solar consumers is sparking concern among lawmakers, industry representatives, and consumers alike. The shift, formalized in the Prosumer Regulation 2026, is raising questions about regulatory predictability, consumer rights, and the future of distributed renewable energy in Pakistan.
The core of the dispute lies in the financial implications for those who have already invested in rooftop solar systems. Under net metering, consumers receive credit on their electricity bills for excess power sent back to the grid, effectively offsetting their energy costs. Net billing, however, offers a lower rate for this excess power, reducing the financial benefits of solar investment.
Parliamentarians voiced their apprehensions during a discussion session organized by the Parliamentary Forum on Energy and Economy on . Concerns centered on the speed with which the regulation was finalized and the perceived lack of adequate stakeholder consultation. Lawmakers argued that reforms with significant financial and legal consequences for thousands of consumers require broader engagement and greater transparency in impact assessments.
Sher Ali Arbab, co-convenor of the Forum, highlighted the drivers behind the surge in rooftop solar adoption. “Citizens invested in rooftop solar largely as a response to systemic weaknesses in the power sector,” he stated, pointing to rising electricity tariffs and the unreliability of the national grid as key motivators. He emphasized the importance of regulatory stability to maintain public confidence in clean energy investments.
Nepra defends the new framework as a necessary step to address concerns related to revenue recovery, cost allocation, and grid sustainability as distributed solar generation increases. Imtiaz Hussain Baloch, Director General (Licencing) at Nepra, explained that the Prosumer Regulation 2026 aims to ensure a more equitable distribution of costs and maintain the financial health of the state-owned power network.
However, critics argue that the timing of the change is particularly problematic, given the current economic climate and the increasing reliance on alternative energy sources. The National Assembly Standing Committee on Industries and Production recently criticized Nepra, warning that the move could undermine investor confidence and damage the government’s credibility. Lawmakers questioned the rationale behind the abrupt policy shift, suggesting it could “shatter the trust of investors in government policies.”
The Pakistan Solar Association Chairman, Waqas Moosa, warned that the revised framework could significantly extend the payback period for rooftop solar systems, potentially slowing down future adoption. He noted that weakening incentives for distributed generation might push consumers towards battery storage and partial disengagement from the national grid, creating new financial and operational challenges for the power sector.
Manzoor Ahmed Ali Zai of the Policy Research Institute for Equitable Development (PRIED) cautioned that altering the financial terms of net-metering undermines the legitimate expectations of households that made long-term investments under the previous regulatory regime. He emphasized that reforms should not disproportionately burden middle-income consumers who adopted renewable energy in good faith.
Parliamentarians underscored the constitutional responsibility of the legislature in overseeing major regulatory shifts with wide economic and social consequences. They emphasized the need for strong parliamentary oversight to ensure transparency, fairness, and alignment with national climate and energy goals. Calls were made for more structured engagement between regulatory bodies and parliamentary forums before the approval of significant policy changes.
The debate also touches on broader questions of government commitment to long-term investments. The chairman of the National Assembly Standing Committee on Industries and Production pointed out that if the government can honor long-term commitments made to independent power producers, it should also respect agreements with individuals and industries who invested in solar systems under the net metering framework.
The shift from net metering to net billing comes at a time when Pakistan is grappling with significant economic challenges, including a strained power sector and a growing need for sustainable energy solutions. The country’s reliance on imported fossil fuels makes it vulnerable to price fluctuations and supply disruptions. Promoting renewable energy sources, such as solar, is seen as crucial for reducing energy costs, enhancing energy security, and mitigating climate change.
However, the implementation of renewable energy policies must balance the interests of various stakeholders, including consumers, investors, and the power distribution companies. The current controversy highlights the complexities of navigating this balance and the importance of ensuring a stable and predictable regulatory environment.
Prime Minister Shehbaz Sharif has directed the Power Division to immediately review the net billing regulations, signaling a potential reassessment of the policy. The outcome of this review will be closely watched by investors, consumers, and policymakers as Pakistan seeks to chart a sustainable energy future.
