Nepra eyes gross metering; new solar exports to get Rs11.30/unit

Nepra has floated draft Prosumer Regulations proposing a shift from net metering to gross metering for new rooftop solar connections, arguing the change is needed to reduce costs borne by non-solar customers.

Under the plan, future residential prosumers would sell all exported power at a proposed buyback tariff of Rs11.30 per unit through five-year contracts, with scope for extension. Consumption from the grid would be billed separately at retail rates, unlike net metering which nets imports against exports on the bill.

Existing net-metering users would remain protected under seven-year agreements at roughly Rs22 per unit until their contracts expire. Nepra has invited public comments within 30 days and could hold a hearing before finalising the rules.

Officials say rapid rooftop uptake has cut grid sales by an estimated 3.2 billion units in FY2024, creating about Rs101 billion in revenue pressure that adds roughly Rs0.9/kWh to other customers' tariffs. Projections suggest lost sales could climb to 18.8 billion units by FY2034, implying a Rs545 billion impact if unchecked.

The regulator and the Power Division argue the new framework aligns incentives with cheaper utility-scale solar (now contracted below Rs10/unit) and addresses technical risks such as midday surpluses. They also cite alleged misuse, including export levels exceeding sanctioned loads, and say smart meters are being installed to monitor exports and improve control.

Industry voices warn the shift will lengthen payback periods for new rooftop systems, but Nepra maintains the move balances consumer fairness, grid stability and energy transition goals.