The federal government has announced major changes to the country’s solar energy policies, approving a new framework for solar users under the “NEPRA Solar Consumers Regulations 2025.”

The policy, finalised after months of consultation between the Ministry of Energy, NEPRA, and other stakeholders, introduces a net billing system to replace the traditional net metering arrangement.

Under the new rules, the duration of solar contracts for consumers will be reduced from seven years to five years.

Instead of the surcharge given to consumers in the previous system, consumers will now be given the facility to exchange units.

Moreover, the new solar net billing has been set at Rs 11 per unit. Earlier, consumers were benefiting from a price of Rs 25.98 per unit.

The policy also mandates that all solar consumers with loads below 25 kilowatts must obtain a license from NEPRA.

Earlier, residential, industrial, and commercial consumers with capacities up to 25 kilowatts were exempt from licensing requirements.

A Ministry of Energy spokesperson said the new policy is aimed at improving management of solar systems and ensuring transparency in the energy sector.

They emphasised that the NEPRA will determine solar tariffs, which may be adjusted over time, and that the policy is not expected to have a significant financial impact on consumers.

NEPRA officials confirmed that the net billing system will be implemented under the new policy, marking a shift from the previous net metering approach.

The Ministry of Energy highlighted that the new framework is necessary for the proper administration of solar systems across the country.

Sources said the new regulations are expected to streamline solar energy use in Pakistan while providing consumers with a simplified, transparent, and regulated billing structure.