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Net Metering To Net Billing

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16.04.2026

The journey toward the adoption of solar energy has been one of the few true success stories in Pakistan’s recent history. While our nation is not historically known for spearheading green initiatives, sheer economic desperation, driven by crushing utility bills, compelled upper- and middle-class households, as well as businesses, to invest heavily in renewable energy.

This citizen-led movement transformed Pakistan into the world’s third-largest importer of Chinese-made solar panels and, by 2024, the sixth-largest global market for solar technology. Faced with a staggering surge in electricity tariffs, citizens liquidated their savings and took out bank loans to turn their rooftops into miniature power plants. Aided by a highly favourable net metering policy, consumers were able to slash their previously unbearable utility charges to zero.

However, this remarkable momentum has been abruptly thwarted. The recent announcement by the National Electric Power Regulatory Authority (NEPRA) that Pakistan is shifting from "net metering" to a far less lucrative "net billing" regime for new rooftop solar users has triggered intense national debate.

To understand the outrage, one must understand the mechanics of the policy that started it all. Net metering is a billing mechanism that credits solar system owners for the electricity they add to the national grid. Because a typical home generates more electricity during peak daylight hours than it consumes, an on-grid (or grid-tied) solar system allows consumers to send their surplus electricity back to the utility company.

This exchange is managed through the installation of bidirectional meters, locally referred to as "green meters." Unlike normal electric meters that only spin forward, bidirectional meters spin in both directions. When the consumer pulls........

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