The NEPRA has released a draft of the Prosumer Regulations 2025, aiming to reduce net metering incentives and control renewable energy distribution.

Officials said the new draft suggests nearly halving the size, duration, and payment rates for net-metered solar power users. Once approved, these regulations will replace the Alternative and Renewable Energy Distributed Generation and Net Metering Regulations 2015. NEPRA has asked for suggestions on the draft within 30 days before canceling the 2015 rules.

Under the draft, the contract period for new agreements would be reduced from seven years to five years. Users will no longer be allowed to install solar systems exceeding their approved load—for example, a 10kW user can only install up to 10kW.

Net metering users will also receive payment at the average national energy purchase price, meaning the rate drops from Rs26 per unit to Rs13 per unit. Additionally, distribution companies can reject new net metering applications on feeders that already have high net metering penetration.

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NEPRA officials explained that prosumers are consumers who also generate solar electricity. The current connected net metering capacity is 6,000MW, which rises to 13,000MW if off-grid solar is included. The new rules would cut solar capacity limits by roughly 50 percent. The step is intended to protect costly power utility businesses from financial losses.