Net Metering Cost in Pakistan: Fees and Charges

Key Takeaways

• The National Electric Power Regulatory Authority (NEPRA) sets the national concurrence fees for net metering, not individual Distribution Companies (DISCOs).
• The concurrence fee is Nil for distributed generation facilities of 25 kW or less, and Rs. 1,000 per kW for facilities above 25 kW.
• Prosumers are responsible for all costs related to interconnection facilities, including metering installation and any necessary distribution system improvements.
• We read NEPRA's S.R.O. 709 dated 28 April 2026, which became effective on February 9, 2026, for these details.

What are the official net metering costs in Pakistan?

The primary official cost for net metering in Pakistan is the concurrence fee, which is set by the National Electric Power Regulatory Authority (NEPRA). This fee structure was notified by NEPRA in S.R.O. 709 dated 28 April 2026 and is deemed effective from February 9, 2026. For a distributed generation facility of 25 kW or less, the concurrence fee is Nil. For facilities exceeding 25 kW, a one-time fee of Rs. 1,000 per kW is charged, payable to NEPRA.

Understanding Pakistan's Net Metering Framework

Net metering in Pakistan operates under the National Electric Power Regulatory Authority (Prosumer) Regulations, 2026, which came into force on February 9, 2026. These regulations define a "prosumer" as an applicant who has entered into an agreement with a licensee for distributed generation, and a "distributed generation facility" (DG facility) as a facility set up by a prosumer using solar, wind, or biogas energy resources for electricity generation up to 1 MW.

NEPRA, established under the Regulation of Generation, Transmission and Distribution of Electric Power Act, 1997, is the national regulatory body responsible for setting these procedures, fees, and billing arrangements across Pakistan. This means that the core rules and fees for net metering are uniform nationwide, applying to all Distribution Companies (DISCOs) like HESCO, PESCO, and QESCO.

The capacity of a proposed distributed generation facility cannot exceed the sanctioned load of the applicant’s premises. However, NEPRA may revise this capacity at any time through a notification. For facilities of 250 kW or above, a load flow study is required, to be conducted through the licensee or a Pakistan Engineering Council (PEC)-registered consultant.

It is important to note that the billing mechanism for net metering, now referred to as net billing, changed with the 2026 regulations. Under this arrangement, electricity supplied by the licensee to the prosumer is billed at the applicable tariff, while electricity supplied by the prosumer to the licensee is billed at the national average energy purchase price. This is a significant change from previous regulations, as explained in our guide on Net Metering vs. Net Billing Pakistan: What Changed Feb 2026 Master Explainer.

The Costs Involved in Net Metering

The costs associated with net metering can be divided into official fees and the prosumer's responsibility for equipment and installation.

Official NEPRA Concurrence Fees

The fee for obtaining concurrence from NEPRA for a distributed generation facility is specified in S.R.O. 709 dated 28 April 2026, effective from February 9, 2026.

It is important to note that a prosumer having a distributed generation facility of 25 kW or below capacity is not required to seek concurrence from the Authority; instead, the concerned licensee shall accord its approval. This exemption was introduced by S.R.O. 1330(I)-2026, dated 06-08-2026.

Prosumer Responsibilities for Other Costs

Beyond the NEPRA concurrence fee, the prosumer bears several other costs related to the installation and interconnection of their distributed generation facility. These responsibilities are outlined in the NEPRA Prosumer Regulations, 2026.

The licensee will issue a "connection charge estimate" to the prosumer within seven working days of the agreement's execution. The prosumer is then required to make this payment within seven working days of its issuance. After payment, the licensee is responsible for installing and commissioning the interconnection facility within fifteen working days.

Understanding your bi-directional meter and how it records energy flow is crucial for managing these costs and your billing. Our guide on Green Meter Reading Guide: Understand Your Bi-Directional Bill provides further details.

What is set nationally and what is not

The National Electric Power Regulatory Authority (NEPRA) is the sole authority for setting the national framework for net metering in Pakistan. This includes:

• Concurrence Fees: The fees for distributed generation facility concurrence (Nil for <= 25kW, Rs. 1,000/kW for > 25kW) are uniform across the entire country, as stipulated in NEPRA's S.R.O. 709.
• Prosumer Regulations: The overarching rules, eligibility criteria, capacity limits, and general responsibilities of prosumers and licensees are defined in the NEPRA Prosumer Regulations, 2026. This includes the requirement for a load flow study for facilities of 250 kW or above, and the 80% distribution transformer capacity limit.
• Billing Mechanism: The net billing arrangement, where exports are valued at the national average energy purchase price and imports at the applicable tariff, is a national standard.

While the NEPRA concurrence fees are national, the specific "connection charge estimate" issued by a Distribution Company (DISCO) like HESCO, PESCO, or QESCO will cover the costs of interconnection facilities and any required distribution system improvements specific to your location and the DISCO's infrastructure. These estimates are provided by the individual DISCOs based on the national regulations that place the responsibility for these costs on the prosumer.

What the published rules do not tell you

While the NEPRA regulations clearly define the official concurrence fees and the prosumer's responsibilities for interconnection and metering costs, they do not provide specific figures for all potential expenses.

• National Average Energy Purchase Price: The exact value of the "national average energy purchase price" at which prosumer exports are billed is not provided in the regulations. This figure is dynamic and determined by NEPRA.
• Cost of Bi-directional Meters: While the prosumer is responsible for metering installation costs, the regulations do not specify the price of a bi-directional meter itself. If a licensee does not have meters available, the prosumer may procure them directly, but the cost will vary by supplier and meter type.
• Installation Costs: The cost of installing the solar panels, inverters, internal wiring, and other balance-of-system components is not regulated or published by NEPRA or the DISCOs. These costs depend on the system size, equipment chosen, and the installer.
• Inverter and System Equipment Costs: The regulations require grid-connected inverters and generators to comply with international standards (e.g., UL 1741, IEEE 1547), but they do not publish the costs of these components.
• DISCO-specific Connection Charge Estimates: While DISCOs are mandated to issue a "connection charge estimate," no DISCO we could reach publishes typical or average figures for those estimates. These estimates are site-specific and depend on the required infrastructure upgrades.

For an estimate of the financial viability of your solar project under the new net billing regime, you may find our Net Billing Payback Calculator Guide: Is Solar Still Worth It? Yes helpful, though it will require you to input estimated equipment and installation costs.