Net Metering in Pakistan 2026: Complete Guide (LESCO, K-Electric, IESCO + All DISCOs)

Net metering in Pakistan is the policy that lets your rooftop solar system feed surplus units back to the grid in return for a credit on your DISCO bill. The policy has been a make-or-break factor in solar economics since 2017, and the March 2025 NEPRA decision fundamentally changed the math: the old 1:1 unit swap is gone, replaced by a flat buyback rate of roughly Rs 10/unit. This guide explains exactly what changed, how the new bill is calculated, what payback looks like in 2026 across LESCO, K-Electric, IESCO, MEPCO, GEPCO, FESCO, HESCO, SEPCO, PESCO, QESCO and TESCO, the step-by-step application process, and the practical questions every Pakistani solar customer should ask before signing a contract.

TL;DR, what changed in March 2025

Old rule (2017-2024): your exported units offset your imported units 1:1 against your retail tariff (Rs 35-48/unit depending on slab). Effective payback: 3-4 years for a typical 5kW system.

New rule (post-March 2025): exported units are credited at the National Average Power Purchase Price (NAPPP), currently around Rs 10/unit. Imported units are still billed at full retail slab rates. Effective payback: 5-7 years for the same 5kW system.

NEPRA's reasoning: under the 1:1 rule, solar customers were effectively avoiding the fixed transmission, distribution and capacity payment costs baked into the retail tariff, while still using the grid as a free battery. Grid-only customers were cross-subsidising them. The buyback rate change shifts that burden back. Whether you agree with the reasoning or not, the math is now what it is, and our Net Metering Calculator computes your post-2025 bill in seconds.

How a Pakistani net metering bill is calculated (worked example)

Consider a Lahore household on LESCO, unprotected slab, with a 5kW solar system. Monthly consumption: 800 units total. Solar production: 600 units. Of that, 350 units are self-consumed (used the moment they are produced), and 250 units are exported back to the grid because no one was home to use them.

The DISCO's bi-directional (green) meter records two numbers:

• Imported units: 450 (800 total − 350 self-consumed from solar)
• Exported units: 250 (sent back to grid)

Under the new rule, the bill is:

1. Import bill on 450 units (unprotected domestic, Q2 2026 illustrative slabs):

Add NJ Surcharge (450 × Rs 0.10 = Rs 45), Electricity Duty (1.5% of variable charges ≈ Rs 222), TV Fee (Rs 35), GST 18% on subtotal (≈ Rs 2,720). Approximate import bill total: Rs 17,800.

2. Export credit at Rs 10/unit:

250 units × Rs 10/unit = Rs 2,500 credit

3. Net payable:

Rs 17,800 − Rs 2,500 = Rs 15,300.

For reference, the same household with NO solar would have used the full 800 units, and the bill would have been roughly Rs 38,000 (much steeper because higher slabs at Rs 43-48/unit kick in). So the solar customer still saves ~Rs 22,700/month vs no solar, but only Rs 2,500/month of that comes from the export credit. The remaining Rs 20,200 saving comes from not having to buy those 600 production units from the grid in the first place.

This is the key insight under the new rule: self-consumption is now far more valuable than export. Anything you can shift from grid-time to solar-time (running the dishwasher / washing machine at noon instead of evening; charging an EV during the day; running pool pumps and water motors midday) directly saves you Rs 35-48/unit instead of earning you Rs 10/unit on export.

DISCO-by-DISCO net metering (LESCO, K-Electric, IESCO, MEPCO and the rest)

The buyback rate is the same nationally (Rs ~10/unit NAPPP), set by NEPRA. What differs by DISCO is:

• The import-side tariff slab structure (each DISCO has slightly different per-unit slab rates per its annual tariff determination, usually within ±1 rupee of each other for the same slab).
• Time-of-Use (ToU) eligibility, K-Electric, LESCO and IESCO have ToU peak / off-peak rates available for connections above a certain load (typically 5kW+). Net metering on a ToU meter splits import / export readings into peak and off-peak buckets, which matters because most solar export happens off-peak (afternoons before 5 PM), where the buyback rate is even lower than during peak (5-11 PM evenings, when no solar is producing anyway).
• Application processing speed, LESCO, IESCO and K-Electric typically clear net metering applications in 4-6 weeks; MEPCO, FESCO, GEPCO 6-10 weeks; HESCO, SEPCO, PESCO, QESCO, TESCO can run 8-12+ weeks depending on local backlog.
• Bi-directional meter availability, usually procured by the DISCO and recovered as a one-time fee on your bill (Rs 25,000-40,000), sometimes included in the solar vendor's installation quote.

Our Net Metering Calculator lets you pick your specific DISCO to get the right tariff applied.

How to apply for net metering in Pakistan: step-by-step

Step 1, Install your solar system. Net metering applies to systems between 3 kW and 1 MW (revised under the new policy from the older 1 kW-1 MW range). Most residential applications are 5-15 kW.

Step 2, Use an AEDB-licensed solar vendor. The Alternative Energy Development Board maintains a public list of licensed net metering installers. Using an unlicensed installer disqualifies you from net metering even if the system is fine, DISCOs will refuse to install the bi-directional meter without an AEDB-licensed vendor's signature on the application.

Step 3, Vendor submits the application to your DISCO with: - System single-line diagram - Inverter datasheet and Pakistan-approved listing (most reputable brands, Inverex, Solis, Knox, MaxPower, Tesla Solar, are listed) - Electrical safety certificate - Site address, CNIC copy of the consumer name on the bill - Application form (DISCO-specific)

Step 4, DISCO inspection. A DISCO engineer visits to verify the installation matches the application. Common rejection reasons: panel string voltage mismatch, missing earth grounding, AC-side overcurrent protection inadequate, anti-islanding test fails.

Step 5, Bi-directional meter installation. Once approved, the DISCO replaces your existing meter with a green bi-directional meter. The meter is sealed; do not let anyone tamper with it.

Step 6, Net metering agreement signing. Three-year initial term, automatically renewable. Read the agreement, it includes clauses about the tariff being subject to NEPRA revisions (which is exactly how the buyback rate dropped in March 2025; existing customers were largely grandfathered to their original rate for the remaining term, but new applicants from April 2025 onward use the new rate).

Step 7, Bill watching. First bill after net metering install should show separate Imported and Exported readings, energy charges on imports only, and the export credit at the buyback rate. If something looks wrong, take photos and dispute within 30 days.

Total elapsed time: typically 4-8 weeks in 2026, longer in remote DISCOs.

Is net metering still worth it in Pakistan after 2025?

Yes for most homes, but the math is tighter than 2018-2024. Approximate payback periods on a Rs 18,000-30,000 monthly bill household:

Three reasons it still makes sense:

1. Tariff inflation. Pakistani electricity rates have risen ~10-15% per year on average since 2020. Your savings escalate every year while the system runs at near-zero ongoing cost.
2. Self-consumption value. Even at Rs 10/unit export, the self-consumed portion (the units your solar generates while you are using them) saves you Rs 35-48/unit. Optimise for self-consumption: run heavy appliances during solar hours.
3. Load-shedding hedge. A hybrid system with a battery keeps you running when the grid blacks out (anti-islanding rule means a pure grid-tied system shuts off during load-shedding for grid worker safety). For homes / businesses in Karachi or smaller cities with frequent load-shedding, the backup itself is worth the extended payback.

Where it makes less sense post-2025: very low-consumption homes (below ~400 units/month) where the unprotected slab top rates do not kick in much. The arithmetic still works but the savings are smaller and payback approaches 8-10 years.

Use our Solar System Size Calculator to size your system to your specific bill and get a realistic 2026-policy payback estimate.

Frequently asked questions

What is the National Average Power Purchase Price (NAPPP)?

The weighted average cost at which CPPA-G (Central Power Purchasing Agency) buys electricity from generators (GENCOs, IPPs). It includes fuel cost, capacity payment, transmission losses. NEPRA pegs the solar export buyback to this number, currently around Rs 10/unit, revised quarterly with the FPA / QTR cycle.

Did existing net metering customers lose their old 1:1 rate?

Mostly grandfathered for the remainder of their existing 3-year agreement term. New applications submitted after the April 2025 effective date of the NEPRA notification use the new buyback rate from day one. Renewals after the original 3-year term ends move to whatever rate is in force at renewal.

Can I export more than I import in a month?

Yes, you can, and the surplus is rolled over as a credit on next month's bill (under transitional rules; some DISCOs cap roll-over at one year). The credit is in PKR, not in kWh, so the value is locked at the buyback rate when it was earned.

Are commercial / industrial customers treated the same?

The same buyback rate (Rs ~10/unit NAPPP) applies, but the import-side tariff is the relevant B-class commercial or industrial schedule, which usually has different slab structures, demand charges, and ToU peak / off-peak splits. The framework is the same; the per-unit numbers differ.

What if my solar produces more than 3 kW of system size, is that legal?

3 kW is the lower eligibility bound for net metering. Systems above 1 MW require a separate wheeling agreement, not net metering. Residential systems are almost always in the 3-25 kW range, comfortably within net metering eligibility.

Do I have to be on the same tariff slab forever once I install solar?

No. Your slab (Protected vs Unprotected) is determined by your import-side usage. If your post-solar imports stay below 200 units/month for 6 consecutive months, you can re-qualify for Protected slab. Many Pakistani solar customers achieve this within a year, which provides additional savings on the import side.

Bottom line

Net metering in Pakistan still works, it just works less aggressively than the headline 3-year-payback stories you may have read from 2019-2024 articles. Run your specific numbers in our Net Metering Calculator, size a sensible system in the Solar System Size Calculator, and predict your DISCO bill before / after with our Electricity Bill Calculator. Get three written quotes from AEDB-licensed vendors before signing, verify the panel and inverter warranties, and ask the vendor to handle the net metering application paperwork (most include it free as part of installation).

Solar is one of the few investments in Pakistan that fights both rising electricity bills AND rupee depreciation simultaneously. Even at a 5-7 year payback, the next 15-18 years of nearly-free electricity is a stronger return than almost any savings instrument available in PKR.