Pakistan’s National Electric Power Regulatory Authority (NEPRA) has launched a public consultation on proposed new rules governing photovoltaic (PV) systems with capacities of up to 1 MW operating under the country’s net metering framework.

The draft Prosumer Regulations 2025 are intended to replace Pakistan’s existing Net Metering Regulations, which have been in force since 2015.

Under the proposed rules, surplus electricity exported to the grid would no longer be settled through one-to-one net metering. Instead, NEPRA plans to introduce a net billing mechanism, under which PV system owners would be credited based on a nationally determined average energy purchase price rather than the retail electricity tariff.

NEPRA said surplus electricity would be purchased by utilities at Pakistan’s national average energy purchase price, which is expected to be lower than current incentive levels. According to local media outlet Daily Times, the tariff could fall from approximately PKR 26 ($0.093) per kWh to around PKR 13 per kWh.

The proposed regulations would also shorten the standard net metering agreement term from seven years to five years, with extensions possible through mutual agreement between prosumers and distribution companies. Existing net metering agreements signed under the 2015 regulations would remain valid until their expiration, after which the new rules would apply.

If adopted, the changes would mark a transition from a pure net-metering system to a net billing model. NEPRA said the move is aimed at balancing the continued adoption of renewable energy with the financial sustainability of utilities and the reliability of the national power grid.