Energy & Consumer Affairs | July 2026 | 4 min read
⚡ Quick Takeaways
- Pakistan’s net-metered solar capacity has reached about 6,978 MW.
- Capacity has grown nearly 37 times since FY2020, when it stood at 190 MW.
- Higher tariffs, a weaker rupee and cheaper panels made rooftop solar more attractive.
- The old one-to-one net metering model had a Rs. 101 billion revenue impact in FY2024.
- New consumers now fall under net billing, while existing contracts continue until expiry.
Pakistan’s rooftop solar boom has reached a major policy turning point, with net-metered capacity climbing to almost 7,000 MW and forcing the government to rethink how exported solar electricity is credited on consumer bills.
| 6,978 MW Net-metered solar by FY2026 |
37x Growth since FY2020 |
Rs. 101bn FY2024 revenue impact |
Rooftop Solar Growth Hits a Turning Point
Pakistan’s rooftop solar capacity has expanded at extraordinary speed over the past six years, reaching almost 7,000 MW by June 2026. The surge has prompted the government to replace the country’s old net metering regime with a new net billing system aimed at reducing financial and technical pressure on the power sector.
Speaking at a SAARC webinar, Energy Adviser to the Power Division Syed Faizan Ali said solar generation under Pakistan’s net metering framework increased from just 190 MW in FY2020 to around 6,978 MW by FY2026. That means net-metered solar capacity grew nearly 37 times in only six years.
Officials linked the boom to rising electricity prices, the depreciation of the Pakistani rupee and a sharp fall in imported solar panel prices. Together, these changes made rooftop solar far more attractive for consumers trying to control electricity costs.
According to the presentation, the rupee depreciated by around 75 percent between FY2021 and FY2025, while electricity tariffs rose by nearly 140 percent. During the same period, imported solar panel prices dropped by approximately 60 percent. This combination shortened payback expectations and encouraged many consumers to install solar systems.
| Growth driver: Higher tariffs, rupee depreciation and cheaper panels made rooftop solar more attractive for many consumers. |
Why Net Metering Became Costly
For consumers, rooftop solar became a hedge against high grid electricity bills. For the power sector, however, the speed of adoption created a planning problem because solar users buy fewer daytime units from the grid.
The old net metering model allowed eligible consumers to offset imported electricity with exported solar units on a one-to-one basis. This made rooftop solar financially powerful because units exported during the day could reduce the cost of units consumed from the grid later. As tariffs increased, that credit became more valuable.
Officials said the one-to-one credit mechanism also created financial pressure. The policy had an estimated Rs. 101 billion revenue impact in FY2024, strengthening the case for a new settlement method.
| Indicator | Earlier Position | Latest Position | Policy Meaning |
| Solar capacity | 190 MW in FY2020 | 6,978 MW in FY2026 | Rapid adoption changed sector planning |
| Rupee value | FY2021 baseline | About 75% depreciation by FY2025 | Imported energy costs became harder to absorb |
| Power tariffs | Lower base before surge | Nearly 140% increase | Solar savings became more attractive |
| Panel prices | Higher import cost | Around 60% decline | Installation economics improved |
| Revenue impact | Limited at lower capacity | Rs. 101bn in FY2024 | Net billing introduced for new users |
How Net Billing Changes Solar Returns
The government has now moved to the Prosumer Regulations 2026, which came into effect on February 8, 2026. Under the new framework, new rooftop solar consumers are paid a lower reference price for electricity exported to the grid. Electricity imported from the grid is still billed at the applicable retail tariff.
This is the central difference between the two systems. Net metering treated imported and exported units more symmetrically, while net billing separates the export price from the retail import tariff.
Existing consumers who signed agreements under the 2015 regulations will continue receiving their agreed benefits until their contracts expire. This protection is important because many early adopters made investment decisions based on the previous rules, expected payback periods and the value of one-to-one credits.
The policy challenge now is to keep rooftop solar attractive without creating a larger financial gap in the power sector. Pakistan needs more clean and distributed energy, but it also needs a billing structure that does not overburden non-solar consumers or weaken distribution companies further.
| Consumer impact: New solar users will need to focus more on using their own generation instead of relying mainly on export credits. |
Balancing Solar Growth and Power Sector Costs
For new consumers, the economics of rooftop solar will depend more heavily on self-consumption. Systems that use more electricity on site during daylight hours may still offer strong savings, while systems designed mainly to export power to the grid could face longer payback periods under net billing.
The shift also increases the importance of system sizing, load patterns and battery planning. Consumers will need to assess whether their daytime usage supports the system size they install. Oversized systems may no longer produce the same financial result if exported electricity receives a lower price.
For policymakers, the next phase will require careful communication. The balance has to be credible for both solar and non-solar consumers.
| Policy caution: The shift should protect grid finances without making clean energy feel out of reach for ordinary consumers. |
Disclaimer: This article is for general information only. Solar regulations, tariff references and consumer billing terms may change with official updates.
