Latest Net Metering Rates in Pakistan (2025) – NEPRA-Approved Buyback Tariff by DISCO

Imagine generating your own electricity at home—and then having your electric company buy back the extra energy you don’t use. That’s the power of net metering for home solar users. As solar energy adoption rises across Pakistan, especially in urban areas like Islamabad, Lahore, and Karachi, more homeowners and businesses are turning toward this smart, money-saving solution.

In simple terms, net metering allows you to send the extra electricity your solar panel system generates back to the national grid. In return, you receive credits that offset your electricity bill. Over time, this means lower monthly bills, reduced dependence on utility companies, and even a chance to earn compensation for renewable energy production.

In Pakistan, this system is officially regulated by NEPRA (National Electric Power Regulatory Authority) under its net metering policy. The authority has laid out clear guidelines and buyback rates for distributed solar producers, creating a framework that supports sustainable energy while empowering consumers.

With the government actively encouraging the shift to renewable energy, net metering isn’t just an option—it’s becoming a smart long-term investment. Whether you’re a homeowner looking to cut down on electricity costs or a business aiming to reduce your carbon footprint, net metering is your gateway to energy independence.

How Net Metering Works in Pakistan

Net metering might sound technical, but it’s actually a simple and smart system—especially when you understand the basics of how it works in Pakistan.

At the heart of net metering is the grid-tied solar system. This means your solar panels don’t just power your home or office; they’re connected directly to the national electricity grid managed by companies like IESCO, K-Electric, LESCO, and others under WAPDA. So, whenever your system produces more electricity than you consume—especially during sunny hours—that surplus energy is sent back to the grid.

Now, here’s where the magic happens.

With bi-directional electricity meters, also known as net meters, your home’s energy flow is recorded both ways:

• One side tracks how much electricity you import from the grid

• The other tracks how much excess electricity you export back to it

The utility company, whether it’s IESCO, K-Electric, or another DISCO, keeps a monthly record of this data. If you’ve exported more electricity than you used, you earn energy credits, which reduce your bill—or in some cases, offset it entirely.

NEPRA has played a crucial role in regulating this process by introducing standardized on-grid solar system pricing and policies. Their guidelines make sure solar system owners are fairly compensated for every unit of clean energy they provide to the grid.

In short, net metering in Pakistan empowers consumers to become energy producers—turning your rooftop into a mini power station that not only cuts your bill but also supports a cleaner, greener national grid.

Current Net Metering Rates (2025 Update)

If you’re planning to invest in solar power, one of the most important questions you might have is: How much will I earn for the extra electricity I send back to the grid? The answer lies in the latest NEPRA net metering update 2025.

As of this year, NEPRA (National Electric Power Regulatory Authority) has set the official feed-in tariff at Rs. 19.32 per kWh. This means for every extra unit of electricity (1 kilowatt-hour) that your solar system exports to the national grid, you are paid Rs. 19.32 by your electricity provider—whether it’s IESCO, LESCO, K-Electric, or another distribution company.

Electricity Buyback Rate: How It Works

Let’s break it down with a simple example:

• Suppose your home consumes 300 kWh in a month.

• But your on-grid solar system generates 450 kWh.

• That’s 150 extra units sent back to the grid.

• At Rs. 19.32 per unit, you’d earn:
  150 x 19.32 = Rs. 2,898 as a credit on your bill.

This process is what we call solar energy reimbursement—turning sunshine into monthly savings, and sometimes even zero bills.

️ DISCO-Wise Net Metering Rate Policy

While NEPRA regulates the buyback rate across the country, some DISCOs (Distribution Companies) may offer minor variations in billing mechanisms or meter adjustments. However, the Rs. 19.32/kWh rate is currently uniform and applicable across:

• IESCO (Islamabad Electric Supply Company)

• LESCO (Lahore Electric Supply Company)

• FESCO, GEPCO, MEPCO, HESCO, PESCO, QESCO

• K-Electric (for Karachi residents)

Always check with your local utility or visit the NEPRA official website to verify the most recent policy updates.

So, whether you’re in Rawalpindi, Lahore, or Karachi—net metering is not just about saving energy, it’s about earning from it.

DISCO-Wise Net Metering Unit Rate Comparison (2025)

• The rate Rs. 19.32/kWh is the NEPRA-approved feed-in tariff for 2025.

• All DISCOs are bound to follow NEPRA’s policy unless a region-specific exception is declared.

Factors Affecting Net Metering Rates

While the concept of net metering is simple—sell your extra solar energy back to the grid—the actual rate you receive per unit can vary based on several important factors. If you’re planning to install a solar system or already have one, understanding these variables will help you maximize your solar earnings.

️ 1. Government Regulations & NEPRA Policies

The foundation of all net metering in Pakistan lies in the policies issued by NEPRA. Every year, NEPRA reviews and announces the official feed-in tariff. This rate is influenced by national energy goals, market demand, and the cost of power generation from traditional and renewable sources.

Additionally, Power Purchase Agreements (PPAs)—which outline terms between solar producers and DISCOs—are often regulated by NEPRA to ensure fairness and transparency for both consumers and utility companies.

️ 2. Location and Regional DISCO

Where you live also plays a role. Different provinces and DISCOs (like IESCO, LESCO, or K-Electric) may have slight variations in billing practices, metering infrastructure, or credit adjustment timings. Urban centers typically have smoother implementation of net metering due to better infrastructure and support.

For instance:

• IESCO is known for quick processing and efficient meter installation.

• K-Electric may have a different timeline or approval protocol.

• Rural areas might face delays in technical surveys or grid connectivity.

☀️ 3. Type and Size of Solar PV System

Not all solar systems are created equal. The size and quality of your solar PV system directly impact how much extra energy you can send to the grid—and thus how much you can earn.

• A 5kW grid-tied system will earn differently than a 10kW hybrid setup.

• Systems with battery storage might export less energy, as stored electricity is used locally.

• Distributed Energy Resources (DERs) like multiple rooftop setups or solar farms may require additional approvals and technical considerations from DISCOs.

4. Utility Company’s Internal Policy

Although the feed-in tariff is set by NEPRA, each utility company (DISCO) manages its own metering and billing systems. This means timelines for:

• Meter installation

• Energy credit adjustments

• System inspections and approvals

…can vary widely. That’s why it’s important to stay updated with your local utility’s net metering procedures, especially if you’re in the IESCO service region or planning to apply soon.

Bonus Insight: Net Metering vs Gross Metering

Pakistan currently follows the net metering model, where you’re credited only for the net amount of excess electricity exported. In contrast, gross metering pays you for every single unit your system generates, regardless of your own usage. While gross metering sounds attractive, net metering offers a more balanced and cost-effective structure for residential and small business setups in our current regulatory environment.

Understanding these factors puts you in a better position to optimize your solar savings, choose the right system, and work effectively with your local utility company.

Net Metering Benefits for Homeowners and Businesses

Switching to solar energy isn’t just good for the planet—it’s a smart financial decision. Through Pakistan’s net metering program, both homeowners and businesses can enjoy real-time savings, monthly credits, and long-term returns. Let’s explore how this system works in your favor.

1. Significant Cost Savings and Return on Investment (ROI)

Installing a grid-tied solar system may seem like a big investment upfront—but with net metering, you start seeing savings almost immediately. Every excess unit your system sends back to the grid is money in your pocket. Over time, these credits add up, making your solar ROI (Return on Investment) stronger and faster than ever.

For many users, solar systems pay for themselves within 3 to 5 years—and then continue saving you money for over a decade.

2. Energy Credit Rollover = No Waste

Don’t worry if your solar system generates more electricity than you use in a given month. With net metering, any extra energy is converted into credits that roll over to the next billing cycle. That means:

• You’re never losing value.

• You can cover higher electricity usage in future months—like during hot summers or business peak seasons.

This energy credit rollover system ensures every unit you generate works for you.

3. Drastically Reduced Electricity Bills

One of the most obvious and appreciated benefits of net metering is the reduction in your electricity bill. Whether you live in Islamabad under IESCO or operate a business in Karachi with K-Electric, net metering can offset a significant portion of your monthly charges—and in some cases, bring your bill down to zero.

Imagine using your AC, lights, and appliances without stressing over the unit price at the end of the month—that’s the power of solar energy savings.

4. Energy Independence + Environmental Impact

Beyond the savings, net metering helps you become less dependent on the grid and rising electricity rates. You produce your own clean power and use it smartly. Plus, every unit you export means fewer fossil fuels burned—helping reduce air pollution and carbon emissions in Pakistan.

By choosing net metering, you’re not just making a smart financial move—you’re contributing to a greener, more sustainable future.

Whether you’re a homeowner looking to protect your family from rising costs, or a business aiming to improve your bottom line, the benefits of net metering are too good to ignore.

How to Apply for Net Metering in Pakistan

So, you’ve installed a solar system—or you’re planning to—and now you want to take the next smart step: apply for net metering. Good news: the process is well-structured, and once approved, you can start sending your extra solar energy to the national grid and earn credits on your electricity bill.

Here’s a step-by-step guide to help you apply through NEPRA and your local DISCO, such as IESCO or K-Electric.

Step-by-Step Net Metering Application Process

Step 1: System Installation by Certified Installer

First, make sure your solar PV system (minimum 1kW and up to 1MW) is installed by a certified installer. This ensures your system meets the technical standards required by AEDB (Alternative Energy Development Board) and NEPRA.

Step 2: Gather Required Documents

Prepare the following documents:

• Copy of CNIC (applicant)

• Recent paid electricity bill

• Net metering application form (available from your DISCO)

• System design/layout and capacity details

• Installer’s certification from AEDB

• Undertaking or affidavit as per NEPRA guidelines

Step 3: Submit Application to Your Utility Company (e.g., IESCO)

You’ll need to visit your local DISCO office (like IESCO for Islamabad) and submit the application along with the documents.

Step 4: Technical Inspection and Approval

Your DISCO will inspect the site and verify your system’s compliance with NEPRA standards. If everything checks out, they’ll approve your application. Step

5: Bi-directional Meter Installation

After approval, a bi-directional (net) meter will be installed to track both imported and exported electricity. This step is crucial to start receiving solar energy credits.

Step 6: Net Metering Agreement & NEPRA Registration

Once the meter is installed, you’ll sign a formal Net Metering Agreement with your DISCO. The agreement is then submitted to NEPRA for registration and record.

Once NEPRA confirms the registration—you’re officially live on the net metering program!

Key Notes:

• Your solar system must be on-grid (connected to the national grid).

• System size must be between 1kW and 1MW to qualify.

• All installations must follow AEDB and NEPRA safety guidelines.

Final Tip: If you’re in the IESCO region, we recommend regularly visiting IESCO’s official website or contacting their helpline for updates on processing times, required forms, and application status.

By following this process, you’re not only lowering your electricity costs—you’re joining Pakistan’s transition to clean, self-sustaining energy.