How much does a DISCO pay for solar units exported under Net Metering?

Under Net Metering, exported units offset your imported units 1:1 during the billing month. At year-end, any net excess units are paid at the applicable off-peak rate, which is lower than retail rates. The settlement rate varies by DISCO but is typically PKR 11-15 per unit.

How do I apply for Net Metering in Pakistan?

Apply through your DISCO's portal or office: 1) Submit application with required documents (CNIC, property documents, proposed system design), 2) Get DISCO inspection and approval, 3) Install the approved system, 4) Get bi-directional meter installed, 5) Sign interconnection agreement. Processing takes 4-8 weeks.

Solar Energy

☀️ Net Metering vs Gross Metering in Pakistan: Complete 2026 Guide

Q: What is Net Metering in Pakistan?

Net Metering allows you to consume your solar-generated electricity first and export only the excess to the grid. A bi-directional meter tracks both import and export. At month-end, you're billed only for the net difference. Excess exported units are credited to your account and can offset future bills.

Q: What is Gross Metering in Pakistan?

Gross Metering exports 100% of your solar generation to the grid and you import 100% of your consumption from the grid. You get paid a fixed feed-in tariff (currently PKR 19.32/unit) for all generation, while paying regular retail rates for consumption. Two separate meters track generation and consumption.

Q: Is Net Metering still available in Pakistan in 2026?

Yes, Net Metering is still available in Pakistan. NEPRA's 2019 Net Metering Regulations remain in effect. However, there have been policy discussions about transitioning to Gross Metering for new connections. Always check with your DISCO for the current registration options.

Q: What is the payback period for solar panels in Pakistan?

For Net Metering systems, payback is typically 3-4 years for residential consumers with high consumption (300+ units). For Gross Metering, payback is longer at 5-7 years due to lower buyback rates. However, solar panels last 25+ years, so both provide excellent long-term ROI.

📅 Last Updated: February 2026 • 📖 12 min read

As solar energy adoption accelerates in Pakistan, understanding the different metering options is crucial for maximizing your investment. Whether you're installing a new solar system or considering upgrading, this comprehensive guide explains Net Metering vs Gross Metering, helping you make an informed decision.

Understanding Solar Metering Options

When you install solar panels and connect to the grid in Pakistan, there are two main ways to account for the electricity you generate and consume:

Feature	Net Metering	Gross Metering
How it works	Self-consume first, export excess	Export 100% generation, import 100% consumption
Meter type	Bi-directional meter	Two separate meters (generation + consumption)
Export rate	1:1 offset against consumption	Fixed feed-in tariff (PKR 19.32/unit in 2026)
Best for	High daytime consumption	Low consumption, large roof space
Payback period	3-4 years	5-7 years
Availability (2026)	Available (existing + new)	Being introduced for new connections

Net Metering: Detailed Explanation

How Net Metering Works

With Net Metering, your solar system is connected to both your home and the grid. During the day:

Solar generates electricity
Your home uses what it needs directly from solar
Excess is exported to the grid (meter runs backward)
At night or cloudy periods, you import from the grid (meter runs forward)
Monthly billing is based on net difference (import minus export)

📊 Net Metering Example

System: 10 kW solar system

Monthly generation: 1,200 units

Monthly consumption: 800 units

Self-consumed: 500 units (during daytime)

Exported: 700 units

Imported (night): 300 units

Net: 700 - 300 = +400 units (credited)

Bill: PKR 0 (plus accumulated credit of 400 units)

Net Metering Benefits

1:1 credit: Each exported unit offsets one imported unit
Retail rate offset: You avoid paying PKR 25-40/unit for offset units
Annual rollover: Excess credits carry forward (settled annually)
Fastest payback: 3-4 years for high-consumption homes
No separate billing: Simple single meter system

Net Metering Limitations

Annual settlement penalty: Excess units at year-end paid at off-peak rates (PKR 11-15)
Size limit: System size capped at 1 MW (regulations)
Load limit: Cannot exceed sanctioned load
Policy uncertainty: Future policy may change to Gross Metering

Gross Metering: Detailed Explanation

How Gross Metering Works

Gross Metering treats generation and consumption as two completely separate transactions:

All solar generation is exported to grid (measured by generation meter)
All consumption is imported from grid (measured by consumption meter)
You receive payment for 100% of generation at fixed feed-in tariff
You pay regular retail rates for 100% of consumption
Monthly settlement: Payment for generation minus consumption bill

📊 Gross Metering Example

System: 10 kW solar system

Monthly generation: 1,200 units

Monthly consumption: 400 units (different scenario)

Feed-in tariff: PKR 19.32/unit

Retail tariff (avg): PKR 28/unit

Generation payment: 1,200 × 19.32 = PKR 23,184

Consumption bill: 400 × 28 = PKR 11,200

Net benefit: PKR 23,184 - 11,200 = PKR 11,984/month income

Gross Metering Benefits

Predictable income: Fixed rate for all generation
No consumption matching: Profitable even with low personal usage
Income stream: Can generate positive cash flow
Better for businesses: Treated as generation project
Incentivizes larger systems: More generation = more income

Gross Metering Limitations

Lower rate: Feed-in tariff (PKR 19) lower than retail (PKR 25-40)
Longer payback: 5-7 years vs 3-4 years for Net Metering
Higher consumption impact: You still pay full retail for all usage
Two meters: More complex billing and metering

Which is Better For You?

Choose Net Metering If:

✓ You have high daytime consumption (300+ units/month)
✓ You work from home or have daytime AC usage
✓ You want fastest payback (3-4 years)
✓ Your consumption roughly matches potential generation
✓ You're a residential consumer in a regular home

Choose Gross Metering If:

✓ You have very low electricity consumption
✓ You have large roof space (warehouse, factory)
✓ You want to run solar as an income-generating investment
✓ Your property is mostly vacant during daytime
✓ You're planning a commercial solar farm

🎯 Decision Guide

High consumption (400+ units) + available roof: Net Metering (save PKR 12,000-25,000/month)

Medium consumption (200-400 units): Net Metering with right-sized system

Low consumption (<200 units) + large roof: Consider Gross Metering for steady income

Current Policy Landscape (2026)

NEPRA Net Metering Regulations

NEPRA's 2019 Net Metering Regulations remain in effect and allow:

Residential, commercial, and industrial connections
System sizes from 1 kW to 1 MW
Bi-directional metering with net billing
Rollover of excess generation credits
Annual settlement at off-peak rates

Gross Metering Introduction

The government has been discussing transitioning new solar connections to Gross Metering to:

Separate roles of "Generator" and "Consumer"
Allow grid to buy power at manageable wholesale rates
Maintain retail revenue for grid maintenance
Create a more sustainable DG (Distributed Generation) market

Current Status (February 2026)

📋 Important Update

As of February 2026:

Net Metering: Still available for new applications at most DISCOs
Gross Metering: Being piloted in some areas
Recommendation: If considering solar, apply for Net Metering NOW before potential policy changes

How to Apply for Net Metering

Required Documents

CNIC copy of property owner
Recent electricity bill (not older than 3 months)
Property ownership documents
Single line diagram of proposed system
System technical specifications
Installer/EPC contractor license

Application Process

Submit application through DISCO portal or office
Pay processing fee (PKR 2,000-5,000)
DISCO inspection of your premises
Receive approval with technical requirements
Install system through certified installer
DISCO testing and bi-directional meter installation
Sign interconnection agreement
System goes live

Timeline: 4-8 weeks from application to commissioning

Financial Comparison: Net vs Gross

Scenario	Net Metering Savings	Gross Metering Benefit	Winner
Home: 500 units/month, 10kW system	PKR 15,000/month saved	PKR 11,000/month net	Net Metering
Home: 200 units/month, 10kW system	PKR 6,000/month saved + small credit	PKR 17,000/month net	Gross Metering
Office: 1000 units/month, 20kW system	PKR 30,000/month saved	PKR 18,000/month net	Net Metering
Warehouse: 100 units/month, 50kW system	PKR 3,000 saved + large credit	PKR 90,000/month net	Gross Metering

Frequently Asked Questions

What is Net Metering in Pakistan?

Net Metering allows you to consume your solar-generated electricity first and export only the excess to the grid. A bi-directional meter tracks both import and export. At month-end, you're billed only for the net difference. Excess exported units are credited to your account.

What is Gross Metering in Pakistan?

Gross Metering exports 100% of your solar generation to the grid and you import 100% of your consumption. You get paid a fixed feed-in tariff (currently PKR 19.32/unit) for all generation, while paying regular retail rates for consumption.

Is Net Metering still available in Pakistan in 2026?

Yes, Net Metering remains available in Pakistan. NEPRA's 2019 regulations are still in effect. However, there are ongoing policy discussions about transitioning to Gross Metering. Check with your DISCO for current options.

How much does a DISCO pay for exported solar units?

Under Net Metering, exported units offset imported units 1:1 during the billing month. At year-end, excess units are paid at off-peak rates (PKR 11-15/unit). Under Gross Metering, the feed-in tariff is fixed at approximately PKR 19.32/unit.

What is the payback period for solar panels in Pakistan?

Net Metering systems typically pay back in 3-4 years for high-consumption households. Gross Metering takes longer at 5-7 years due to lower buyback rates. Solar panels last 25+ years, so both provide excellent long-term ROI.

Related Resources

📊 Calculate Your Savings

Use our Bill Calculator to understand your current consumption and estimate potential solar savings under Net Metering.