PM Sharif directs appeal against NEPRA’s new solar regulations

ISLAMABAD: Prime Minister Shehbaz Sharif has taken notice of newly issued solar energy regulations by the National Electric Power Regulatory Authority (NEPRA) and directed the Power Division to file a review appeal to safeguard existing solar consumers’ contracts, the government said on Wednesday.

In a high-level meeting chaired by the prime minister, officials discussed the implications of the Prosumer/Net Metering Regulations 2026 — a framework that replaces the decade-old net-metering system with a net-billing regime for rooftop solar and other distributed energy producers.

Under the new rules, consumers exporting surplus solar electricity to the national grid will be compensated at the national average energy purchase price rather than receiving a one-for-one credit against their consumption, and future contracts will be limited to five years instead of seven.

The regulations also impose separate billing for electricity drawn from the grid, a departure from the previous net-metering system.

The prime minister said the review appeal should ensure “every possible safeguard of the existing consumer contracts” and directed the Power Division to develop a comprehensive strategy to protect those agreements and to prevent the costs of the overhaul from being unfairly shifted to other electricity consumers.

He noted that about 466,000 solar users benefit from distributed solar systems, while roughly 37.6 million grid-dependent consumers could face indirect burdens if issues arising from the regulatory changes are not addressed.

The NEPRA argued the revised regulations are aimed at enhancing grid stability, ensuring fair cost recovery and integrating distributed generation into the national energy system.

Critics, including some senators and energy stakeholders, have said the changes could disincentivise rooftop solar adoption and undermine investor and consumer confidence in the sector.

The prime minister’s intervention comes amid broader public and political debate over energy policy, costs, and the pace of renewable energy adoption in Pakistan. The Power Division’s appeal to NEPRA is expected to be filed shortly.

The meeting was attended by Deputy Prime Minister and Foreign Minister Ishaq Dar, Power Minister Awais Leghari, other federal ministers and officials from related ministries.