NEPRA changes solar regulations to protect existing users

ISLAMABAD:

In an important policy clarification for solar consumers, the National Electric Power Regulatory Authority (NEPRA) on Thursday amended its 2026 solar regulations, ensuring protection for existing net metering users while tightening rules for those looking to expand their systems.

The notification states that “nothing shall affect approvals granted, licenses or competitions issued and agreements executed under the repealed regulations,” thereby protecting previously approved solar installations and their contractual terms.

NEPRA has made it clear that any distributed generator operating under a valid agreement “shall be charged in accordance with the tariff and mechanism provided for in the repealed regulations until the expiration of the term of such agreement,” thereby ensuring continuity for existing consumers amid broader policy changes.

However, the regulator set a firm line on changes to the system, warning that financial benefits linked to previous agreements would not apply in the event of a “substantial change to the distributed generation facility resulting in a change in maximum electricity production”.

The notification further clarifies that the amended provision “shall be deemed to have taken effect on February 9, 2026,” giving the amendments retrospective legal coverage from that date.

The latest amendment comes in the backdrop of NEPRA’s earlier decision to abolish the unit-by-unit net metering regime and move to a net metering system for new and existing solar users, a move that had raised concerns among consumers and industry stakeholders.

By retaining existing agreements while limiting future changes, the regulator appears to balance investor confidence with changing energy policy priorities, as Pakistan faces rising electricity costs and a growing shift to distributed renewable energy generation.

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