Pakistan’s rooftop solar capacity has surged nearly 37-fold over the past six years, reaching almost 7,000 MW by June 2026, prompting the government to replace the existing net metering system with a new net billing framework to address mounting financial and operational challenges in the power sector.
Speaking at a SAARC webinar, Energy Adviser to the Power Division Syed Faizan Ali said electricity generation under the country’s net metering regime grew from 190 MW in FY2020 to approximately 6,978 MW in FY2026.
He said the rapid growth was driven by a combination of higher electricity tariffs, the depreciation of the Pakistani rupee, and a sharp decline in global solar panel prices.
Rising Electricity Costs Fueled Solar Adoption
According to official data, the Pakistani rupee depreciated by nearly 75 percent between FY2021 and FY2025, while electricity tariffs increased by around 140 percent. During the same period, imported solar panel prices fell by approximately 60 percent, making rooftop solar significantly more affordable and accelerating installations across the country.
Govt Replaces Net Metering With Net Billing
Officials noted that the previous one-to-one net metering mechanism placed increasing financial pressure on the electricity sector. The policy reportedly resulted in an estimated Rs. 101 billion revenue impact in FY2024, leading the government to introduce the Prosumer Regulations 2026, which came into effect on February 8, 2026.
Under the new net billing system, new rooftop solar users receive a lower reference rate for electricity exported to the national grid, while electricity imported from the grid continues to be billed at the applicable retail tariff.
However, consumers who signed net metering agreements under the 2015 regulations will continue receiving their existing benefits until their contracts expire.
Balancing Solar Growth and Power Sector Sustainability
Officials said the government’s priority is to continue encouraging rooftop solar adoption while ensuring the financial sustainability of the power sector and reducing the burden on consumers who do not have solar systems.
