How grid-connected solar is billed in Pakistan since the 2026 move to net billing — step-by-step application across every major DISCO, common mistakes, and what to verify post-approval.Net Metering in Pakistan: How It Works and How to Apply
For grid-connected rooftop solar, the connection to your DISCO is what lets your system offset your whole bill rather than just the hours the sun is shining. For a decade that worked through net metering: every unit you exported cancelled a unit you later imported, one-for-one. That changed in February 2026. New applicants now fall under NEPRA’s Prosumer Regulations 2026 (SRO 251(I)/2026), which replace net metering with net billing — exports are bought at a fixed rate of roughly Rs 10–11 per unit, while everything you import is billed at your normal tariff. Systems approved before February 2026 keep their old 1:1 deal until their agreements expire. Understanding this — and how to navigate the application process — is essential before investing in a solar system.
Net Metering, Net Billing, and What Applies to You
Net metering was a billing arrangement between you and your local electricity distribution company (DISCO). When your solar panels generated more electricity than you were consuming — which happens frequently during peak sunlight hours — the excess flowed back into the grid. Your bidirectional meter recorded both the electricity you drew from the grid and the electricity you exported to it, and at the end of each billing cycle you were credited for every exported unit at the same rate you paid for imported electricity. One unit out equalled one unit in. That made oversized systems attractive: you could push surplus to the grid and offset your bill at the full retail rate — in Karachi, roughly Rs 45 to Rs 55 per unit at upper slabs.
That framework, introduced under the NEPRA (Net Metering) Regulations of 2015, was replaced in February 2026. NEPRA’s Prosumer Regulations 2026 (SRO 251(I)/2026) moved Pakistan from net metering to net billing. The difference is one word, but it changes the math. Under net billing you still export surplus, but the buyback rate is no longer tied to the retail rate: exported units are bought at roughly Rs 10–11 each — down from the roughly Rs 27 available just before the switch — while every unit you import is charged at your normal retail tariff of roughly Rs 45–55 at upper slabs. Because you pay far more to buy a unit back at night than you earn exporting one at noon, the economics of overproduction have collapsed.
If you already hold a net metering agreement signed before February 2026, you are grandfathered in. Your existing 1:1 terms remain valid until your contract expires — you do not need to take any action. The new rules apply only to applications going forward, and new prosumer agreements run for five years. The practical takeaway for anyone installing today: size the system to what you actually use during daylight, treat exports as a bonus rather than the main event, and consider battery storage if much of your consumption is in the evening. Self-consumed solar still saves you the full Rs 45–55 you would otherwise pay the grid — that is where the value has always been.
The Application Process: Step by Step
The application process in Pakistan involves multiple steps and can take anywhere from 4 to 12 weeks depending on your DISCO. Here is what the process looks like:
Step 1: System installation. Your solar system must be installed and operational before you can apply. The system must meet NEPRA technical standards, including proper protection relays, anti-islanding features, and appropriate inverter specifications.
Step 2: Application to your DISCO. Submit a grid-connection application to your local distribution company. This requires your CNIC copy, property ownership documents, latest electricity bill, single-line diagram of your solar system, equipment specifications (panel and inverter datasheets), and the installer’s registration details.
Step 3: Technical feasibility study. The DISCO conducts a technical assessment to verify that your system meets safety standards and that the local grid infrastructure can accommodate your export capacity. This typically takes 2–4 weeks.
Step 4: Generation license from NEPRA. For systems above 1 MW, a generation license is required from NEPRA. For residential and small commercial systems (under 1 MW), a simplified notification process applies. Your DISCO handles the coordination with NEPRA.
Step 5: Bidirectional meter installation. Once approved, the DISCO replaces your existing meter with a bidirectional (import/export) meter. You may need to pay for the meter and installation, which typically costs PKR 10,000–25,000.
Step 6: Connection agreement. You sign a connection agreement with your DISCO. This formalizes the billing arrangement and defines the terms under which you will export and import electricity. New agreements are issued under net billing and run for five years.
Step 7: Commissioning. A DISCO representative inspects your installation, verifies the meter readings, and formally commissions the arrangement. From this point, your meter tracks both import and export.
Which DISCOs Handle Solar Grid Connections?
All major distribution companies in Pakistan process rooftop solar grid-connection applications under NEPRA’s prosumer regulations. New connections are set up under net billing; systems approved before February 2026 keep their existing net metering terms. Either way, the efficiency of the application process and turnaround time varies significantly between them:
• K-Electric (Karachi) — Generally efficient process, well-established procedures for residential and commercial systems.
• LESCO (Lahore) — One of the most active DISCOs for solar connections, with a relatively streamlined application process.
• IESCO (Islamabad/Rawalpindi) — Good support for solar applications, moderate processing times.
• FESCO (Faisalabad) — Active program, though processing can be slower than LESCO.
• MEPCO (Multan) — Processes solar applications, though timelines vary by region.
• PESCO (Peshawar) — Applications accepted, but infrastructure challenges can cause delays.
• HESCO (Hyderabad) — Supports solar connections, though fewer installations compared to other regions.
Common Mistakes to Avoid
Oversizing your system for export. Under net billing, surplus you push to the grid earns only about Rs 10–11 per unit — a fraction of what you pay to import it back. Sizing a system far beyond your daytime consumption no longer pays for itself, and some DISCOs also cap export capacity relative to your sanctioned load. Size to your own load first, and use batteries rather than the grid to bank surplus for the evening.
Choosing a non-AEDB-registered installer. The Alternative Energy Development Board (AEDB) maintains a registry of approved solar installers. Using a non-registered installer can complicate your application and may void certain protections.
Incomplete documentation. Missing or incorrect documents are the most common cause of application delays. Ensure your single-line diagram, equipment specs, and property documents are all in order before submitting.
Ignoring the bidirectional meter requirement. Your existing meter cannot track exports. Until the DISCO installs a bidirectional meter, you are effectively giving away any surplus generation for free.
Not monitoring after installation. Once your connection is active, you should verify that your bills accurately reflect your imports and exports. Billing errors are not uncommon, and catching them early saves money and frustration.
We Handle the Entire Process
The application process is manageable but bureaucratic. It involves coordination between your installer, your DISCO, and sometimes NEPRA — and delays at any step push back your timeline for actually benefiting from a grid-connected system.
Solar Citizen manages the entire process on behalf of our clients, from initial documentation and DISCO application through to meter installation and commissioning. Our team is familiar with the specific procedures and contacts at each major DISCO, which significantly reduces processing time. If you are planning a solar installation and want the grid connection handled properly from the start, get in touch with our team.
Find a Solar Installer by City
Net-billing approval depends as much on your installer’s paperwork experience with your specific DISCO as on the system design itself. Use our city installer rankings to find someone who has navigated K-Electric, LESCO, IESCO, or your local utility before.
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