The National Electric Power Regulatory Authority (Nepra) has announced a public hearing on February 6 to consider revisions to the country’s solar net-metering system. The hearing follows feedback received from a wide range of stakeholders, including government bodies, power utilities, organizations, and members of the public.
Proposed Changes to Solar Net-Metering
Nepra has released draft Prosumer Regulations 2025 that would alter existing net-metering rules. A key change proposes limiting the size of new solar installations to a consumer’s sanctioned load. Currently, installations can be up to 150 percent of that capacity.
The draft regulations include provisions for existing net-metering consumers, who will continue operating under their current seven-year contracts until they expire. However, new net-metering connections would be subject to five-year contracts, with renewals dependent on mutual agreement.
Shifting Payment Structures
Beyond installation size and contract length, Nepra is also proposing a change to how surplus electricity supplied to the grid is compensated. Currently, prosumers receive approximately Rs. 26 per unit. The proposed regulations would adjust this to the national average energy purchase price, estimated at around Rs. 13 per unit.
This shift would involve moving from net metering to net billing, where imported electricity is charged at the standard tariff and exported power is credited at the revised rate.
Nepra stated that the proposed rules are intended to modernize the regulatory framework in response to the increasing adoption of on-grid solar capacity nationwide.
Frequently Asked Questions
What is net metering?
Net metering allows consumers who generate their own electricity from solar power to feed excess electricity back into the grid. They are then credited on their electricity bill for the value of that power.
What is net billing?
Net billing charges consumers the full retail rate for electricity they use from the grid and credits them at a different rate – the national average energy purchase price – for electricity they send back to the grid.
Will existing solar customers be affected?
Existing net-metering consumers will continue under their current seven-year contracts until those agreements expire.
How these proposed changes will ultimately affect the growth of solar energy in the country remains to be seen. A possible next step is the public hearing on February 6, where stakeholders will have the opportunity to voice their opinions. It is likely that Nepra will consider the feedback received before finalizing the Prosumer Regulations 2025. Analysts expect the outcome to shape the future of distributed solar generation in the region.
