MEPCO Net Metering vs Net Billing 2026 — What Changed and What It Means for Your Solar Bill
In 2026, NEPRA changed Pakistan’s solar electricity rules completely. If you have solar panels on your roof — or you are considering installing them — everything you know about net metering may now be wrong. The old system gave you full retail credit for every unit you sent to the grid. The new system does not. This post explains exactly what changed, what it means for your MEPCO bill, and whether rooftop solar in South Punjab still makes financial sense.
What Is MEPCO Net Metering and Why Did It Change?
Net metering was a system introduced in Pakistan around 2015 under NEPRA’s Distributed Generation and Net Metering Regulations. Under net metering, if your rooftop solar panels generated more electricity than your household used at any moment, the surplus was exported to the MEPCO grid. That exported electricity was credited to your account at the full retail rate — the same rate you pay when importing electricity.
The result: many solar households effectively used the grid as a battery. They exported surplus during the day and imported at night, with the meter credits making the exchange nearly free. For consumers who sized their systems correctly, monthly bills dropped to near zero or even generated credits.
NEPRA terminated this arrangement in 2026 under new Prosumer Regulations. The fundamental reason: distributing companies like MEPCO argued — and NEPRA accepted — that retail-rate net metering credits were economically unsustainable and unfair to non-solar consumers who were effectively subsidising solar consumers’ grid use.
The Most Important Thing Most People Get Wrong
Net metering has not been replaced with a worse version of the same thing. It has been replaced with a fundamentally different economic model. Understanding the difference determines whether a new solar installation in South Punjab makes financial sense for your household.
The key difference is the export credit rate. Under net metering: exported units credited at full retail import rate (say Rs. 40/unit). Under net billing (new system): exported units credited at the wholesale “avoided cost” rate — approximately Rs. 10–14/unit in 2026 determinations. A household that exports and imports equal amounts no longer breaks even. They still pay a net amount because the import rate is 3–4x the export credit rate.
How to Check Your MEPCO Solar Account — Step by Step
Step 1 — Check Your Connection Type
Your MEPCO bill shows your connection type and tariff category. Solar consumers registered under net metering will show a different tariff code than standard consumers. Check your current bill against your original net metering approval documents to verify you are on the correct tariff.
Step 2 — Verify Your Registration Status
If you had a net metering connection before 2026, contact your MEPCO subdivision to confirm: (1) whether you have been transitioned to the new net billing system or retained under transitional protection, and (2) the specific terms of your account under current NEPRA regulations.
Step 3 — Check Your Credit Balance
Under net billing, credits accumulate and are settled quarterly rather than monthly. Your individual monthly bills may show a payable amount even if you exported surplus electricity that month. At the quarterly settlement, credits are applied against the quarter’s imports. Check with your MEPCO subdivision for your current credit balance status.
Other Check Methods
Call 118 with your reference number and ask specifically about your prosumer/net billing status. Visit your subdivision with your original net metering approval documents and current bills for an in-person account review.
Why Net Billing Economics Are Different for Different Household Types
High Self-Consumption Households — Still Makes Sense
A household that consumes most of its solar generation directly — a family at home all day running AC in summer, or a home-based business — benefits from solar regardless of the export rate. Every unit self-consumed saves the full retail import rate (Rs. 35–45/unit). The export economics are less important because most generation is used internally.
Low Daytime Consumption Households — Economics Changed Significantly
A household where all adults work outside the home, children are at school, and the house is empty from 8AM to 4PM. Their solar panels generate at maximum capacity during those hours — but nobody is home to use the electricity. Under net metering, all that generation was credited at full retail rate. Under net billing, it is credited at Rs. 10–14/unit. If they then import in the evening at Rs. 40/unit, the economics no longer work as well.
Planned vs Unplanned Changes Under 2026 Prosumer Regulations
| Aspect | Old Net Metering (pre-2026) | New Net Billing (2026 Prosumer Regulations) |
|---|---|---|
| Export credit rate | Full retail import rate (Rs. 35–45/unit) | Avoided cost rate (Rs. 10–14/unit approx.) |
| Settlement period | Monthly — credits applied each month | Quarterly — credits accumulate and settle every 3 months |
| Surplus credit payout | Credits carried forward indefinitely | Quarterly surplus may be paid out at avoided cost rate |
| New applications | No longer accepted under old system | Must apply under Prosumer Regulations |
| Existing connections | Received transitional protection | Consult MEPCO subdivision for your specific terms |
| System sizing approach | Optimise for maximum generation | Optimise for maximum self-consumption |
MEPCO Net Metering in South Punjab — Specific Considerations
South Punjab’s climate and electricity situation creates specific factors for solar economics that differ from other parts of Pakistan:
- The protected consumer threshold interaction: South Punjab domestic consumers who install solar specifically to stay under 200 units get double benefit — the solar generation reduces their bill AND their consumption staying under 200 units keeps them on protected rates. This is a South Punjab-specific advantage for correctly sized systems.
- Load shedding and solar: During load shedding hours, a solar system with battery backup provides electricity when the grid does not. This resilience value is not captured in the export credit rate calculation but is real and significant for DG Khan, Rajanpur, and Muzaffargarh consumers with 12+ hours of daily outages.
- The Punjab Solar Tubewell Scheme 2026: Agricultural consumers in DG Khan, Rajanpur, Muzaffargarh, and RYK can apply for up to Rs. 10 lakh subsidy toward solar irrigation systems. This is separate from the domestic net metering/net billing regime and worth investigating for farming households.
How Net Metering Changes Affect Your MEPCO Bill
If you are an existing net metering consumer:
- Your monthly bills may now show a payable amount even in months where you exported more than you imported — because quarterly settlement means monthly bills do not reflect accumulated export credits
- Your annual electricity cost under net billing will likely be higher than under net metering for the same generation and consumption pattern
- The exact impact depends on your specific transitional terms — contact your subdivision for your account details
If you are considering installing solar:
- Size the system for maximum self-consumption rather than maximum generation
- Calculate payback period based on self-consumed savings (at full retail rate) not on export credits (at reduced avoided cost rate)
- Battery storage makes more economic sense under net billing than under net metering — storing surplus for evening use is now worth more than exporting it
Is Solar Still Worth It in South Punjab Under Net Billing?
Honest answer: yes, for most households — but the economics have changed and the right system design has changed with them.
A 3kW system with a 5kWh battery in Multan:
| Scenario | Under net metering | Under net billing |
|---|---|---|
| Annual generation (estimated) | 4,500 units | 4,500 units |
| Self-consumed (60%) | 2,700 units × Rs. 40 = Rs. 108,000 saved | 2,700 units × Rs. 40 = Rs. 108,000 saved |
| Exported (40%) | 1,800 units × Rs. 40 = Rs. 72,000 credited | 1,800 units × Rs. 12 = Rs. 21,600 credited |
| Total annual value | Rs. 180,000 | Rs. 129,600 |
| System cost (with battery) | Rs. 550,000 | Rs. 550,000 |
| Simple payback period | 3.1 years | 4.2 years |
The payback period is longer under net billing — but still under 5 years. And this calculation does not include the load shedding resilience value, the protected consumer threshold benefit from reduced consumption, or the expected increase in electricity tariffs over the system lifetime.
When and How to File a Net Metering/Net Billing Complaint
File a complaint if: your quarterly credit settlement has not appeared after the quarter end, the export credit rate applied to your account does not match NEPRA’s published avoided cost determination, or you were transitioned from net metering to net billing without the transitional protection terms being properly applied.
File at your MEPCO subdivision with your original net metering approval document and recent bills. For unresolved disputes: CCMS at ccms.pitc.com.pk, then NEPRA at 080025622.
Frequently Asked Questions — MEPCO Net Metering 2026
Yes. NEPRA replaced the Distributed Generation and Net Metering Regulations with Net Billing (Prosumer) Regulations in 2026. New solar connections are registered under the net billing system where exported units are credited at the wholesale avoided cost rate (approximately Rs. 10–14/unit) rather than the full retail import rate. Existing net metering consumers received transitional protection — consult your MEPCO subdivision for your specific terms.
Yes, for most households — but the system should be designed for maximum self-consumption rather than maximum export. A correctly sized system (3kW with battery for a typical household) still has a payback period of 4–5 years in Multan or Bahawalpur, driven primarily by self-consumption savings at full retail rates rather than export credits.
Under net metering (old system), surplus solar electricity exported to the grid was credited at the full retail import rate — unit for unit exchange. Under net billing (Prosumer Regulations 2026), exported units are credited at the lower wholesale avoided cost rate (approximately Rs. 10–14/unit). Credits are settled quarterly rather than monthly.
First, verify whether you are on transitional protection or the new net billing system by contacting your subdivision with your original net metering approval documents. Second, check that the export credit rate applied matches NEPRA’s published avoided cost determination. Third, verify that quarterly credit settlements are being applied correctly. If any of these are incorrect, file a formal complaint at your subdivision.
The Punjab government launched a solar irrigation subsidy scheme offering eligible farmers up to Rs. 10 lakh (Rs. 1,000,000) in subsidy toward solar-powered irrigation systems. The scheme targets South Punjab districts with severe load shedding — DG Khan, Rajanpur, Muzaffargarh, and Rahim Yar Khan are priority areas. Applications go through the district Agriculture Department or extension officer — not through MEPCO directly.
A Final Word on MEPCO Net Metering and Net Billing 2026
The 2026 net metering to net billing transition was controversial and consumer advocates argued strongly against it. NEPRA’s position was that full retail net metering was unsustainable and required cross-subsidisation from non-solar consumers. Regardless of the policy debate, the economic reality for existing and prospective solar consumers has changed.
The most important adaptation: stop designing solar systems for maximum export and start designing them for maximum self-consumption. Battery storage that shifts solar generation from daytime surplus to evening household demand is now the economically dominant strategy in South Punjab. The grid resilience value of stored solar power — powering your home through 12+ hours of daily load shedding in DG Khan or Rajanpur — is worth more than the export credit under any calculation.
Sources: NEPRA Prosumer Regulations 2026, NEPRA avoided cost determinations, Punjab Energy Department 2026. Last verified July 2026. meetyourbills.com is independent — not affiliated with MEPCO or any government body.
