The National Electric Power Regulatory Authority (NEPRA) has confirmed it will retain the net metering policy for existing solar consumers amid controversy over recent regulatory reforms. The decision, formalised in a notification effective from February 9, 2026, protects current net metering users while outlining a revised framework for future contracts and new connections.
NEPRA’s announcement follows widespread debate triggered by reforms introduced earlier this month aimed at altering how surplus solar electricity is compensated. In a statement accompanying the notification, the regulator said it has published proposed amendments to the NEPRA (Prosumer) Regulations, 2026, on its official website and invited stakeholders to provide feedback within 30 days.
Protection for Existing Solar Consumers
The core of NEPRA’s clarification is that existing net metering consumers will not be subject to the new regulatory changes until the expiry of their current agreements. Approvals, licenses, agreements, and concurrences issued under the previous net metering regime will remain valid, and distributed generators with active contracts will continue to be billed according to the earlier rate and mechanism until their contractual terms end.
This protection came after concerns from solar users and industry stakeholders that the new regulatory approach could undermine the financial viability of rooftop solar investments. Earlier drafts of the Prosumer Regulations 2026 had proposed replacing the one-to-one unit offset model with a net billing framework that could significantly reduce compensation for exported solar power.
What the New Framework Proposes
Under the revised structure proposed in the draft, power utilities will purchase surplus electricity from prosumers, households, businesses, and industries generating up to one megawatt at the national average energy purchase price. Electricity supplied back to prosumers would then be billed at the applicable retail tariff. This approach effectively ends the existing model where exported units could offset imported units on a one-to-one basis.
Alongside this shift, the standard agreement term under the new framework would be reduced from seven years to five years, renewable by mutual consent. Future renewals and new connections will follow the new net billing system, a change that could materially affect the long-term returns of solar installations.
Broader Policy Context
The broader regulatory debate around net metering has seen pushback from solar consumers, industry groups, and business representatives. Critics argue that moving to net billing and reducing compensation rates for exported power harms incentives for rooftop solar adoption and undermines confidence in renewable energy policy stability.
Earlier reporting also indicated government intervention aimed at protecting existing solar benefits, including direct directions to NEPRA to re-examine controversial policy measures following backlash.
Next Steps
With the draft amendments now open for public consultation, stakeholders have 30 days to submit comments to NEPRA’s registrar. The regulator will consider this feedback before finalising any changes to the Prosumer Regulations 2026.