End of Net Metering: NEPRA Launches New ‘Net Billing’ Framework for Solar Prosumers.
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Shift in Strategy: NEPRA's transition to Net Billing ends the unit-for-unit offset era, sparking debate over renewable energy incentives.
Key Changes Under the Prosumer Framework
The new regulations introduce a more regulated, albeit less profitable, environment for small-scale renewable producers.
- Lower Export Rates: Prosumers will no longer offset their bills on a 1:1 basis. Instead, excess power sold back to the grid will be priced at the national average purchase price, which is significantly lower than retail rates.
- Immediate Transition: The framework applies to all new exports, meaning existing prosumers must adapt to a system with reduced financial returns compared to previous years.
- Technical Standards: To prevent grid disruptions, NEPRA now mandates strict interconnection safety, including bidirectional meters and advanced protective devices.
- Policy Objective: NEPRA describes the move as a transition toward a “shared grid,” aiming for long-term grid stability and a more equitable distribution of power costs.
- Mixed Reactions: Domestic and industrial users have expressed concerns that the lower profitability of net billing could stall Pakistan’s momentum in clean energy adoption.
