NEPRA Net Metering in Pakistan: What Homeowners Actually Need to Know
A plain-language breakdown of NEPRA's net metering rules for rooftop solar in Pakistan — eligibility, the 2025 net billing change, smart meter costs, and the approval process.
What Net Metering Actually Means
Net metering lets a solar system that’s connected to the grid (an on-grid or hybrid setup) export any electricity it generates beyond what your home is using. Instead of that surplus going to waste, it flows back into WAPDA’s grid and you get credited for it. At night, when your panels aren’t producing, you draw power back from the grid as normal.
In practice, this is what makes a grid-tied solar system pay for itself faster — you’re not just offsetting your own daytime usage, you’re earning something back for what you don’t use.
But NEPRA (the National Electric Power Regulatory Authority) sets specific rules for who qualifies and how the credit works, and those rules changed in 2025. Here’s what actually matters if you’re considering it.
Who Qualifies
The 5 kW Minimum
Systems under 5 kW are not eligible for net metering registration. If your solar system is smaller than that, you can still connect it to the grid and use it to offset your daytime electricity use — you just can’t export the surplus and get credited for it. Anything you don’t use simply isn’t captured.
This is one of the most common misunderstandings people have going into a solar quote: a small on-grid system is still a real system that lowers your bill, it just isn’t a net-metered one.
Your Sanctioned Load Sets the Ceiling
Whatever’s written as your sanctioned load on your WAPDA bill is the cap on your solar system size for net metering purposes. If your bill shows a 5 kW sanctioned load, you can’t register an 8 kW solar system for net metering — you’d need to apply to WAPDA to increase your sanctioned load first, which is a separate process.
Check your latest bill before assuming a system size is possible.
The 2025 Change: Net Billing, Not 1:1 Net Metering
This is the part that catches people off guard if they read older articles or heard about net metering a few years back.
Under the older rules, exported electricity was credited 1:1 — meaning a unit you exported was worth the same as a unit you’d otherwise buy. NEPRA’s newer Prosumer Regulations (2025) moved to net billing instead. Under net billing, the electricity you export is credited at a utility-set “average purchase price” — not your full retail rate.
What this means in practice: your savings still come primarily from using your own solar power directly during the day rather than exporting large amounts and expecting a full-rate credit back. It’s still worthwhile, but the math is a bit different than it used to be, and any 1:1-based payback estimate you see online may be outdated.
What You Actually Need to Set Up
- A bi-directional smart meter. This is what measures electricity flowing both ways — into your home and back out to the grid. It costs roughly PKR 18,500 and is a required part of the net metering setup, on top of your solar system cost.
- DISCO approval. Your local electricity distribution company (LESCO in Lahore, for example) has to approve the connection before you’re actually net-metered.
- An AEDB-certified installer. Net metering approval and your system’s warranty both depend on the installation being done by a properly certified installer — this isn’t just a formality, an uncertified install can hold up your application.
Quick Reference
| Question | Answer |
|---|---|
| Minimum system size for net metering? | 5 kW |
| What sets my maximum system size? | Your sanctioned load (check your WAPDA bill) |
| Is export credited at full retail rate? | No — since 2025, at a utility-set average purchase price (net billing) |
| Extra hardware required? | Bi-directional smart meter (~PKR 18,500) |
| Who approves the connection? | Your local DISCO (e.g. LESCO) |
| Does my installer need certification? | Yes — AEDB certification, required for approval and warranty |
If Your System Is Under 5 kW
This isn’t a bad outcome — it just changes what your system does for you. A smaller on-grid system without net metering still:
- Offsets your daytime electricity use directly, lowering your bill every month you’re generating power
- Costs less upfront than a 5 kW+ system
- Can usually be upgraded later if your usage grows and you want to reach the net metering threshold
Our savings calculator factors this in automatically — if your estimated system size comes out under 5 kW, it tells you plainly rather than promising net metering savings it can’t actually deliver.
The Bottom Line
- 5 kW is the real threshold for net metering eligibility — below that, you’re offsetting usage, not exporting.
- Net billing (2025) pays less per exported unit than the old 1:1 system — factor that into any payback estimate.
- Budget for the smart meter and use a certified installer — both are required, not optional extras.
Not sure where your household lands? Run our calculator or give us a call — we’ll check your actual bill and tell you straight whether net metering makes sense for your system size.