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Net metering versus net billing — these are not the same thing
Under the old net metering system, which operated for years prior to December 2025, solar consumers were credited on a straightforward unit-for-unit basis: every unit you exported to the grid offset a unit you consumed from the grid, at the same retail rate. If you exported 100 units in a month and consumed 150 from the grid, you were billed for the net 50 units — full retail value credit for what you exported.
The net billing framework that replaced it, effective from the December 2025 policy change, works differently: exported units are credited at a separate, typically lower rate than what you're charged for units you consume from the grid, rather than a direct one-to-one offset. In practice, this means your exported solar generation is now worth less on your bill than it was under the previous system — the exact differential depends on the specific rate structure NEPRA has set for net billing exports versus standard consumption rates.
Why the policy changed
The shift wasn't arbitrary. Under pure net metering, DISCOs including MEPCO were effectively crediting exported solar power at the full retail rate — a rate that includes not just the wholesale cost of generation but also transmission, distribution, and various surcharges that solar exporters weren't actually contributing to covering, since they were using the grid primarily to export rather than draw from it consistently. As solar adoption grew, this created a genuine cost-recovery gap for the distribution companies, which the net billing framework was designed to address by more closely aligning export credit value with actual wholesale generation cost rather than full retail value.
This is a national policy shift, not something specific to MEPCO — it applies uniformly across all DISCOs in Pakistan under NEPRA's revised framework.
What this means for existing solar consumers
If your solar system was installed and registered under the old net metering framework before the December 2025 transition, the practical question is whether you're grandfathered under the previous terms or have been transitioned to the new net billing structure. This varies and is worth confirming directly with your subdivision office, since the transition arrangements for pre-existing installations have been handled with some variation depending on registration timing and connection specifics.
What to check on your bill going forward: look specifically at how your exported units are being valued relative to your consumed units. If you're seeing a meaningful gap between the rate you're credited for export versus the rate you're charged for consumption, that confirms you're operating under the current net billing framework rather than the older direct-offset system.
What this means if you're considering solar now
For anyone evaluating a new solar installation in 2026, the financial calculation has genuinely shifted compared to what it would have been under the old system. The payback period on a solar investment is now more dependent on self-consumption — using the power you generate directly, in real time, rather than exporting it and buying it back later — because self-consumed units avoid the retail-to-export rate gap entirely, while exported-then-repurchased units now involve that gap working against you.
This has a practical design implication: sizing a solar system to closely match your actual daytime consumption pattern, rather than oversizing for maximum export, now tends to produce a better financial outcome under net billing than it would have under the old net metering framework, where oversizing and exporting the surplus carried little financial penalty.
The application and installation process still follows the same basic path
Despite the billing framework change, the process for actually getting a solar connection registered with MEPCO hasn't fundamentally changed:
- Install your solar system through a licensed installer, sized appropriately for your sanctioned load and consumption pattern
- Apply for net billing registration through your subdivision office, providing system specifications and installer documentation
- Bidirectional meter installation — MEPCO installs or approves a meter capable of measuring both consumption and export separately, since accurate net billing requires tracking both directions, not just the net difference
- Formal approval and registration before your exports begin being credited — operating without formal registration means your exports aren't being properly credited, so this step matters even though it adds some upfront delay
How net billing appears on your bill
Once registered, your bill should show your consumption and export as separate line items, with the export credited at the net billing rate and consumption charged at your standard tariff rate — rather than a single blended "net units" figure the way older net metering bills typically displayed it. If your bill still shows a simple unit-for-unit net figure with no visible distinction between consumption and export rates, that's worth raising with your subdivision office to confirm you've actually been transitioned to the correct current billing structure.
Does the 200-unit protected threshold still apply with solar?
Yes, and this is worth understanding clearly: your protected or unprotected classification is based on your net consumption — what you actually draw from the grid after solar export credits are applied — not your gross usage before solar. A household with solar that keeps net grid consumption at or below 200 units on average should still qualify for protected consumer status on that net figure, even if gross household electricity use (before solar generation is factored in) would otherwise exceed that threshold.
Frequently Asked Questions
What is the difference between net metering and net billing for MEPCO solar consumers?
Net metering, used before December 2025, credited exported solar units at the same rate as consumed units on a direct one-to-one offset. Net billing, the current framework, credits exported units at a separate, typically lower rate than consumption, rather than a direct unit-for-unit swap.
When did MEPCO switch from net metering to net billing?
The policy change took effect from December 2025 as part of a national NEPRA framework revision applied uniformly across all DISCOs in Pakistan, not specific to MEPCO alone.
Is my existing solar installation still under the old net metering rates?
This depends on your specific registration timing and how your installation was transitioned. Confirm directly with your subdivision office by checking whether your bill shows a direct unit-for-unit net figure (older system) or separately rated consumption and export line items (current net billing system).
Does net billing make solar less worthwhile financially?
The financial case has shifted rather than disappeared — self-consumption of generated solar power now matters more for payback period than under the old system, since exported units are credited at a lower rate than they were previously. Properly sizing a system to your actual daytime usage pattern tends to produce a better outcome under the current framework.
Do I still need formal registration to get credit for solar export?
Yes. A bidirectional meter and formal net billing registration through your subdivision office are required before your exports are properly credited — operating solar without this registration means you're not receiving the export credit you're otherwise entitled to.
Does having solar affect my protected consumer status?
Your protected/unprotected classification is based on net grid consumption after solar credits are applied, not gross household usage. Keeping your net consumption at or below 200 units on average should maintain protected status regardless of your total generation.
Last updated: August 2026
Protected vs unprotected consumer guide · New connection guide · Bill calculator · Tariff rates 2026