Gross Metering vs Net Metering in Pakistan: 2026 Policy Explained

By PSI Editorial • June 8, 2026

Atomic Summary: Under net metering, solar exports offset imports at a 1:1 ratio, but NEPRA's 2026 Prosumer Regulations replaced this with net billing, where exports earn only around Rs 11/unit while imports cost Rs 40 to 65/unit. Under the worst-case gross metering model, ALL solar power is sold at wholesale rates and ALL consumption is purchased at retail. Pakistan currently uses net billing, making self-consumption and battery storage the key to maximizing solar ROI.

If you have been following Pakistan's solar energy news in 2026, you have likely seen heated debates about NEPRA killing net metering, gross metering threats, and confusing new regulations. The terminology is being used interchangeably — and often incorrectly — by news outlets, YouTube channels, and even some solar installers.

This article breaks down exactly what each metering model means, what Pakistan's current policy actually says, and how to adjust your solar strategy to maximize savings under the new rules.

The Three Metering Models Explained

1. Net Metering (The Old System: 2015 to February 2026)

Under NEPRA's original 2015 Net Metering Regulations, solar consumers operated on a simple 1:1 unit swap system:

• During daytime: Your solar panels generate electricity. Whatever you do not use is exported to the WAPDA/K-Electric grid.
• During nighttime: You import electricity from the grid as normal.
• At billing time: Every unit you exported cancels out one unit you imported. You only pay for the net difference.

Example: If you exported 300 units and imported 250 units, you owed nothing and carried 50 units as credit to the next month. This made solar incredibly profitable — many consumers had monthly bills of under PKR 500.

2. Net Billing (The Current System: February 2026 Onward)

NEPRA's Prosumer Regulations 2026 replaced net metering with net billing for all new applicants after February 8, 2026. The fundamental change: units are no longer swapped 1:1. Instead, exports and imports are valued at different monetary rates.

• Export Rate: Your excess solar power is bought by the DISCO at the National Average Energy Purchase Price — approximately Rs 11 per unit (this rate is periodically revised by NEPRA).
• Import Rate: You buy electricity from the grid at the full retail tariff — typically Rs 40 to 65 per unit depending on your consumption slab and DISCO.

Example: If you export 300 units (earning 300 x Rs 11 = Rs 3,300) and import 250 units (costing 250 x Rs 55 = Rs 13,750), your net bill is Rs 10,450. Under old net metering, this bill would have been near zero.

3. Gross Metering (The Worst-Case Scenario)

Under gross metering — which was discussed but NOT implemented in Pakistan — your solar system would be completely disconnected from your home. ALL power generated by your panels goes directly to the grid, and you buy back ALL the electricity your home needs at full retail rates.

• Export: 100% of your solar generation is sold at wholesale rate (Rs 9 to 11/unit).
• Import: 100% of your consumption is purchased at retail rate (Rs 40 to 65/unit).
• Self-consumption: Not allowed — all generation must be exported.

Alert: Gross metering is the worst possible model for solar consumers. It eliminates the benefit of self-consumption entirely. Fortunately, Pakistan's current system is net billing, not gross metering, which still allows you to consume your own solar power first.

Financial Impact Comparison: Real Numbers

Here is a side-by-side comparison for a typical 10 kW residential solar system in Punjab generating 40 units/day (1,200 units/month), with a household consuming 800 units/month:

The key takeaway: net billing reduces your savings by roughly 20% compared to old net metering, but it is still vastly better than gross metering. The financial case for solar remains strong under net billing, especially when combined with battery storage.

Who Is Grandfathered Under Old Net Metering?

If you secured your net metering license and had your bi-directional meter installed before February 8, 2026, you are grandfathered under the old 1:1 net metering rules for the duration of your existing contract (typically 7 years from the date of your agreement with the DISCO). Key points:

• Your existing 1:1 unit swap continues until your contract expires
• Applications officially submitted by February 8, 2026 (even if not yet processed) will be honored under the old rules
• You cannot expand your system capacity under the old rules — any capacity increase triggers the new net billing terms

How to Maximize Savings Under Net Billing

Since exported units now earn you only Rs 11/unit while imports cost Rs 40 to 65/unit, the strategy has fundamentally shifted from "export as much as possible" to "consume as much of your own solar power as possible."

Strategy 1: Add Battery Storage

The most impactful change you can make. A 10 kWh to 15 kWh lithium battery bank (brands like BYD, Pylontech, or Osaka Lithium) stores excess daytime solar for use at night, dramatically reducing your grid imports. With a hybrid inverter (Growatt, Solis, or Deye), the battery charges from solar during the day and powers your home after sunset.

Strategy 2: Shift Heavy Loads to Daytime

Run your washing machine, iron, water heater, and water pump during peak solar hours (10 AM to 3 PM) when your panels are generating maximum power. This increases self-consumption and reduces the amount exported at the low wholesale rate.

Strategy 3: Right-Size Your System

Under the old net metering, bigger was always better because every extra unit earned full retail credit. Under net billing, an oversized system exports too much at the low wholesale rate. Size your system to match your daytime consumption plus battery capacity, rather than your total monthly consumption.

Strategy 4: Consider Time-of-Use (ToU) Tariffs

For consumers with 5 kW and above sanctioned load, ToU tariffs charge different rates for peak and off-peak hours. With batteries, you can import cheap off-peak power and avoid expensive peak-hour imports entirely.

Application Process: DISCO-by-DISCO

The metering policy is set by NEPRA, but implementation is handled by your local Distribution Company (DISCO). Here is a quick reference for the major DISCOs:

Alert: Under the new regulations, your net billing application may be rejected if the local transformer capacity utilization exceeds 80%. Check with your DISCO before purchasing your system to confirm capacity availability in your area.

The Bottom Line: Solar Is Still Worth It

Despite the shift from 1:1 net metering to net billing, solar remains the best financial decision for Pakistani homeowners facing electricity rates of Rs 40 to 65 per unit. The ROI period has increased from 3 to 4 years under old net metering to approximately 4 to 6 years under net billing, but a well-designed system with battery storage still provides 20+ years of significant savings.

The key is adapting your strategy: maximize self-consumption, invest in battery storage, and right-size your system for the new rules. For the latest updates on metering policies, read our regularly updated article on net metering policy changes in Pakistan.

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