Net Metering in Pakistan 2025 –2026: Updated Rules, Process, Billing & NEPRA Policy
Introduction
Net metering in Pakistan allows solar system owners to sell excess electricity to the national grid, significantly reducing electricity bills and dependence on conventional power. Governed by NEPRA regulations, net metering has played a key role in the rapid growth of solar energy across residential, commercial, and industrial sectors.
As Pakistan enters 2025–2026, net metering policies are evolving. While the system still offers strong financial benefits, proposed changes—especially around export unit compensation and Export MDI limits—make it more important than ever to understand the updated rules before installing a solar system.
This guide explains how net metering works in Pakistan, eligibility criteria, billing methods, latest policy updates, and whether it is still worth it in 2026.
See The Latest News about Net Metering 2026 in the video below by MFES Solar Energy
What Is Net Metering in Pakistan 2025 - 2026?
Net metering is a billing mechanism that enables solar consumers to export surplus electricity to the national grid through a bi-directional (net) meter. The exported units are credited against the electricity imported from the grid.
Instead of wasting unused solar energy, consumers can “net” their consumption, reducing monthly electricity bills.
Net metering in Pakistan is regulated by NEPRA and implemented by DISCOs such as LESCO, IESCO, FESCO, and K-Electric.
How Net Metering Works (2025–2026)
During daylight hours:
Solar panels generate electricity
The house, factory, or business consumes solar power first
Excess electricity is exported to the grid and recorded as export units
At night or during low solar production:
Electricity is imported from the grid
Imported units are adjusted against previously exported units
This unit-to-unit adjustment currently happens at peak and off-peak rates, making net metering financially attractive.
Eligibility Criteria for Net Metering in Pakistan
Net metering is generally available to three-phase electricity consumers, including:
Residential users
Commercial buildings
Industrial units
Agricultural connections
System Size:
Minimum: 3 kW
Typical residential: 3–25 kW
Commercial & industrial: up to 1 MW
Requirements:
3-phase electricity connection
NEPRA-approved inverter
Licensed solar installer
Export MDI within allowed limits
Approval from local DISCO
Net Metering Application Process in Pakistan
Step 1: System Design & Load Assessment
DISCO evaluates:
Sanctioned load
Solar system capacity
Transformer capacity
Export MDI
Step 2: Documentation Submission
Required documents include:
Net metering application form
CNIC copy
Electricity bill
Single Line Diagram (SLD)
Inverter datasheet
Affidavit & undertaking
Step 3: Technical Inspection
DISCO inspects:
Wiring & earthing
Protection devices
Inverter export settings
Step 4: Bi-Directional Meter Installation
Upon approval, a net meter is installed.
Step 5: Agreement & Activation
Net metering agreement is signed and billing starts.
Export MDI – A Critical Factor in Net Metering
Export MDI (Maximum Demand Indicator) records the highest power exported to the grid at any moment.
Why it matters:
DISCOs strictly limit export power
Exceeding allowed Export MDI can result in penalties
Poor inverter configuration causes approval delays
Most net metering rejections in Pakistan happen due to Export MDI exceeding sanctioned limits.
Difference Between DG Capacity and Export MDI
Net Metering Billing & Credit System
Your electricity bill includes:
Imported units
Exported unit adjustment
Fixed charges
Taxes & surcharges
Fuel adjustment charges (FCA)
⚠️ Important:
Exported units do not eliminate fixed charges
Only energy charges are adjusted
Proposed Net Metering Policy Changes (2026 Update)
According to government and NEPRA discussions:
Unit-to-unit adjustment may be replaced
Exported electricity may be purchased at a fixed lower rate
Proposed export price: ~Rs. 11 per unit
Policy aims to reduce financial burden on DISCOs
Latest Development (Early 2026)
The Power Division directed DISCOs to ensure proper crediting of net metering units, reversing earlier attempts to restrict benefits for high-capacity consumers. However, policy revisions are still under finalization.
Is Net Metering Still Worth It in 2025–2026?
Yes — net metering remains a viable and profitable option, especially when:
Solar system is properly sized
Export MDI is controlled
System is designed by professionals
Key Benefits:
Significant reduction in electricity bills
Faster return on investment (ROI)
Protection from rising power tariffs
Reduced load on national grid
Environmentally friendly energy solution
Despite evolving policies, solar net metering continues to offer long-term savings.
Net Metering vs Battery-Based Solar Systems
| Feature | Net Metering | Battery Solar |
|---|---|---|
| Export to Grid | Yes | No |
| Backup Power | No | Yes |
| Approval Needed | Yes | No |
| Initial Cost | Lower | Higher |
| Long-Term Savings | High | Moderate |
Many users now opt for hybrid solar systems, combining net metering with limited battery backup.
See in the video that with out net metering how zero bill is possible
Why Choose MFES for Net Metering in Pakistan?
MFES (Modern Future Energy Solutions) is a trusted solar energy company in Pakistan, providing end-to-end net metering and solar installation services for residential, commercial, and industrial clients.
With hands-on experience in LESCO, IESCO, FESCO, and other DISCO jurisdictions, MFES understands the practical challenges Pakistani consumers face during net metering approvals—especially issues related to Export MDI limits, DG capacity compliance, inverter configuration, and DISCO inspections.
What MFES Offers:
Complete Net Metering Services
From documentation to DISCO approval and bi-directional meter installation.Export MDI–Optimized System Design
Solar systems are designed to stay within approved DG capacity, avoiding penalties and approval delays.Residential, Commercial & Industrial Expertise
MFES handles:Homes & villas
Commercial buildings
Factories & industrial units
Agricultural solar systems
NEPRA-Compliant Equipment
Use of approved on-grid and hybrid inverters, protection devices, and safety standards.Transparent Guidance on 2025–2026 Policy Changes
MFES helps clients understand how upcoming net metering policy revisions may affect ROI and system sizing.
📌 Thinking about net metering or upgrading your solar system?
MFES provides honest consultation, accurate load analysis, and future-proof solar solutions tailored to Pakistan’s evolving energy policies.
👉 Explore MFES services or contact the team for a free net metering consultation.
MFES Solar Energy
Final Thoughts
Net metering in Pakistan for 2025–2026 is no longer “install and forget.” It requires careful planning, compliance with NEPRA rules, and proper Export MDI management. While policy changes are expected, net metering remains one of the most effective ways to reduce electricity costs in Pakistan.
Contact MFES Solar Energy
Plot 188, Opposite Expo Center Gate #3, Johar Town, Lahore
0300-1599957 | 0314-3072721 | 042-31357272
www.mfes.com.pk
info@mfes.com.pk
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