Solar Net Metering Process in Pakistan

A complete net-metering or prosumer application combines correct documents, accurate engineering drawings and a compliant grid-interconnection design.

A practical explanation of the 2026 application, technical review, agreement, metering and concurrence workflow for grid-connected rooftop solar.

Scope: This article is general information, not an equipment quotation, legal opinion, utility approval or site-specific engineering design. Scope: This article is general information, not an equipment quotation, legal opinion, utility approval or site-specific engineering design.

What changed in 2026—and why the terminology matters

Pakistan’s governing document is now the National Electric Power Regulatory Authority (Prosumer) Regulations, 2026, notified through S.R.O. 251(I)/2026 on 9 February 2026. People still search for “net metering,” and DISCO counters may still use the familiar phrase, but a new applicant should understand the current legal language: applicant, distributed generation facility, prosumer, concurrence and net billing. The 2015 distributed-generation and net-metering regulations were repealed, while later amendments addressed treatment of agreements executed under the previous regime.

Under the current billing structure, electricity imported from the distribution company and electricity exported by the prosumer are valued separately. Imported kWh are billed at the consumer’s applicable tariff. Exported kWh are credited at the National Average Energy Purchase Price, or NAEPP, applicable under the regulatory framework. That difference makes daytime self-consumption more valuable than designing a system only to create excess exports. It also means an installer should never promise one permanent buyback rate for the full life of a solar plant.

Step 1: check whether the connection and proposed capacity are eligible

Begin with the electricity connection—not with a panel quotation. Schedule I of the 2026 regulations describes the standard interconnection agreement for a licensee’s three-phase 400V or 11kV consumer and a distributed generation facility from 1kW up to 1MW. A typical 10kW home or small-business proposal therefore needs a suitable three-phase connection before the prosumer pathway is treated as straightforward. Ask your DISCO to confirm the current requirement if your connection is single-phase or if a phase conversion is planned.

The proposed distributed-generation capacity must not exceed the sanctioned load of the premises. If the bill shows a 7kW sanctioned load and the proposed facility is 10kW, increasing the sanctioned load or reducing the proposed capacity may be necessary before the application can comply. Do not confuse sanctioned load, inverter AC rating and panel DC capacity: the application should state all three accurately.

Transformer hosting capacity is another gate. The regulations say a licensee shall not entertain an application when distributed generation connected to that distribution transformer has reached 80% of its rated capacity. This is why two neighbours with similar roofs can receive different outcomes. Request a written technical reason if capacity is cited, and do not accept a salesperson’s verbal guarantee of approval.

Step 2: prepare a complete document and engineering pack

A complete submission normally starts with the Authority’s standard application form and the current DISCO checklist. Prepare the consumer’s name and contact information, CNIC or company documentation as applicable, connection and premises details, sanctioned load, annual consumption, proposed annual generation, requested in-service date and exact generator or inverter information. Where the applicant is not the property owner, obtain the authorization or other documents required by the DISCO.

The technical pack should identify the panel manufacturer, model, quantity and exact DC array kWp; inverter manufacturer, model, serial number, AC kW, voltage, phase and certifications; site layout; single-line diagram; string design; cable sizes; earthing; surge protection; breakers; isolators; and the accessible manual disconnect device. The 2026 regulations require protection and control diagrams to be approved before commissioning and specify compliance of grid-connected inverters and generators with UL 1741 along with applicable standards notified by the Authority. Do not rely on a generic certificate belonging to a different inverter model.

For a proposed facility of 250kW or more, the regulations require a load-flow study through the licensee or a reputable consultant registered with the Pakistan Engineering Council. Smaller systems may still face additional technical study or modification requirements based on the local network. Keep a digital and printed copy of every drawing, form, receipt and covering letter.

Step 3: submit to the correct distribution licensee

Submit to the company serving the consumer connection: for example, IESCO for Islamabad and much of the Rawalpindi region, LESCO for Lahore and surrounding areas, FESCO for Faisalabad, GEPCO for Gujranwala, MEPCO for Multan, PESCO for Peshawar, HESCO or SEPCO in their respective Sindh territories, QESCO in Balochistan, or K-Electric in its service territory. Always use the current office, portal or channel published by that licensee rather than an address copied from an old blog.

Ask for an acknowledgement or diary number. Under Regulation 3, the licensee is required to tell the applicant within five working days whether the application is complete. If information is missing, the applicant is given three working days after being informed to supply it. “Working days” are not the same as calendar days, and the clock can be affected by an incomplete submission. A clean document pack is therefore the fastest practical way to reduce avoidable delay.

Official sequence and indicative regulatory timelines

• Stage
• Regulatory timing
• What the applicant should retain

Information and approved documents requested from licensee

Acceptance, conditions or written infeasibility reason

Interconnection installation and commissioning

NEPRA concurrence after complete documents reach Authority

These are regulatory stages, not a promise that every application will finish in the sum of the shortest periods. Missing documents, transformer constraints, required system improvements, inspection findings and applicant delays can extend the process. If the technical review finds the proposal infeasible, the licensee is to communicate reasons after completing the initial review. Keep correspondence factual and in writing.

Concurrence fee and connection costs are different

NEPRA’s S.R.O. 709(I)/2026, dated 28 April 2026 and deemed effective from 9 February 2026, sets the concurrence application fee at nil for a DG facility of 25kW or less. For a facility above 25kW, the notification states a one-time fee of Rs1,000 per kW. A 10kW applicant should therefore not be quoted a NEPRA concurrence fee under this notification, but this does not mean the entire interconnection is free.

The prosumer remains responsible for costs associated with interconnection facilities up to the interconnection point, including metering installation, and for network improvements reasonably required solely for that interconnection. The licensee issues a connection-charge estimate. If meters are unavailable, the regulations allow the prosumer to procure the appropriate meter subject to licensee testing before installation. Pay only against an official demand notice or a clearly itemized contractual scope, and distinguish NEPRA fee, DISCO connection charges, meter cost and installer service charges.

Agreement, concurrence, inspection and commissioning

Once the application qualifies, the applicant and licensee enter into the interconnection agreement. The licensee forwards the agreement, fee evidence where applicable and the prescribed affidavit for NEPRA concurrence. If distributed generation does not commence within six months after concurrence, fresh concurrence is required. A material modification—such as changing maximum output or interconnection equipment—also requires prior notice, a revised application and fresh concurrence rather than silently adding panels or another inverter.

The licensee has the right to review the design and inspect the facility before parallel operation. The system needs suitable interconnection protection, anti-islanding behaviour, an accessible manual visual-break disconnect, approved metering and safe earthing. The model agreement requires written notice that the installation is complete and available for commissioning tests before interconnection. Do not export to the grid through an ordinary meter while waiting for approval; reverse flow may be recorded incorrectly and the installation may be non-compliant.

At handover, retain approved drawings, panel and inverter serial numbers, datasheets, warranty documents, protection settings, insulation and earthing test results, meter details, before-and-after readings, monitoring login and photographs of labels and disconnects. These records matter when equipment is replaced or a billing dispute occurs.

How the 2026 net-billing calculation works

At each billing cycle, imported units and exported units are measured in two directions. Imported kWh are charged using the consumer’s applicable tariff. Exported kWh are credited using the applicable NAEPP. If the monetary value of exports exceeds the monetary value of imports for that cycle, the regulations provide for the balance to be carried forward or paid by the licensee quarterly. Taxes, fixed charges, capacity-related charges and other bill components should be read from the actual tariff and bill rather than assumed to disappear.

For CY 2026, NEPRA’s power-purchase-price forecast determined an NAEPP of Rs8.13/kWh. That figure is useful for a dated example, not a permanent guarantee: Regulation 14 allows the Authority to revise the export rate during the agreement and incorporate the revised rate. If a home imports electricity whose avoided variable value is much higher than Rs8.13 but exports large midday surpluses, shifting laundry, pumping, cooling or production load into solar hours can improve economics without adding panels.

Example: if a system generates 1,000kWh in a month and the property uses 650kWh directly, only 350kWh reaches the export register. The 650kWh may displace imports at the applicable consumer value, while the 350kWh receives the export treatment. This is why a correct feasibility model separates self-consumption, grid imports and grid exports instead of multiplying all generated units by one retail tariff.

Agreement term, older agreements and disputes

The standard term under the 2026 regulations is five years from commissioning and may be renewed in further five-year terms with mutual consent. Applicants with agreements executed under the previous rules should not assume that every new-applicant clause applies identically. The April 2026 amendment addressed protection of approvals and agreements granted under the repealed framework and their billing treatment until expiry. Existing prosumers should check their executed agreement, the final gazette amendment and the latest bill rather than relying on social-media summaries.

A prosumer must operate and maintain the facility using prudent electrical practices. The licensee may disconnect for a fault and may also act for maintenance, non-compliance or termination under the stated notice provisions. Disputes arising under the regulations may be submitted to NEPRA. Before escalating, preserve the application diary number, agreement, concurrence, meter records, bills, emails, photographs and complaint references. A documented chronology is much more useful than an unsupported allegation.

Final pre-submission checklist

• Confirm three-phase connection, sanctioned load and the exact proposed AC/DC capacity.
• Ask the DISCO about transformer hosting capacity before buying non-returnable equipment.
• Use the current application form, agreement, affidavit and fee notification.
• Attach consumer identity, premises authority and company documents where applicable.
• Attach layout, single-line diagram, string design, protection and earthing details.
• Match inverter certificates to the exact make and model being installed.
• Keep acknowledgement numbers and respond to deficiencies within the allowed time.
• Pay connection charges only against an official estimate and retain receipts.
• Do not parallel or export before the required meter, inspection and concurrence.
• Model savings with separate self-consumed, imported and exported units.

The process is manageable when engineering and paperwork are prepared together. Buying hardware first and asking compliance questions later is the most common avoidable mistake.

Official sources checked

• NEPRA Prosumer Regulations 2026 — S.R.O. 251(I)/2026
• April 2026 amendment for agreements under the previous framework — S.R.O. 547(I)/2026
• NEPRA concurrence-fee notification — S.R.O. 709(I)/2026
• NEPRA CY 2026 power-purchase-price forecast

Regulations, tariffs and utility procedures can change. Check the latest gazette notification and your serving DISCO before making an investment decision.