Net metering is the legacy regime used in older NEPRA distributed-generation agreements, where imports and exports were netted on the same meter at a single tariff basis. Net billing is the current regime under the NEPRA Prosumer Regulations 2026: imported electricity is billed at the applicable retail tariff, while exported electricity is purchased separately at the national average energy purchase price. Both terms are still used conversationally in Pakistan, but the legal framework for new applications is net billing.
The mechanical difference in one screen
Net metering (legacy)
Imports and exports are netted through one accounting basis.
Commercial question: am I relying on preserved legacy terms?
Net billing (current)
Imports and exports are accounted for as separate value flows.
Commercial question: how much value comes from self-use?
Export treatment changes the economics even when system size looks the sameCopy section link
The core practical difference is how the value of electricity exported to the grid is treated relative to what you consume. Net metering is usually discussed in terms that make exported units feel more directly useful to the buyer. Net billing creates a more explicit distinction between what you use and what you send back. That distinction affects proposal economics, especially for larger systems.
Buyer-side comparison
| Legacy net metering agreements | Current net billing arrangement | |
|---|---|---|
| Governing framework | Older distributed-generation / net-metering agreements under the repealed regime. | NEPRA Prosumer Regulations, 2026. |
| Export credit basis | Legacy rate and billing mechanism preserved for protected existing agreements. | Exports purchased at the national average energy purchase price while imports remain billed at the applicable tariff. |
| Who it mainly matters for | Existing agreements, renewals, and proposals leaning on older economics. | New applications and any proposal being modeled on the current regime. |
| Best buyer question | Am I relying on a protected legacy agreement or just legacy sales language? | Which exact SRO date and export-value assumption did you use in the model? |
The legal label has moved faster than sales languageCopy section link
A lot of buyer confusion now comes from terminology. Installers and sales teams still use net metering and net billing conversationally, but the current NEPRA document is the Prosumer Regulations, 2026 and it explicitly uses a net billing arrangement. That means buyers should not stop at the label they hear in the meeting. Ask which regulation actually governs the proposal, because the commercial meaning changes depending on whether the system sits under a preserved legacy agreement or a current prosumer application.
Supplier framing can make the same policy sound more favorable than it isCopy section link
Suppliers may still use net metering-style language because that is what customers understand. Treat the label as a starting point only; ask whether the proposal is based on a protected legacy agreement or the current prosumer framework.
Agreement term and amendment risk should sit inside your policy reviewCopy section link
The prosumer agreement term is five years and renewable by mutual consent, and the regulations also allow the authority to revise the purchase rate during the agreement term. On top of that, NEPRA's news page shows that the 2026 regulations were amended again on April 2, 2026. Buyers therefore need to treat policy as a dated input, not as a timeless background condition. Ask for the model date and ask whether the recommendation still works if the export side changes during the life of the project.
Quick checklist
- ✓Do not assume all exported electricity is treated the same way under both models.
- ✓Check whether the proposal's savings model depends heavily on grid export.
- ✓Ask the supplier which framework they are assuming and why.
- ✓Re-test payback if the proposal only looks attractive under more generous export treatment.
Frequently asked questions
Because the same hardware can produce very different commercial outcomes depending on whether the project sits under preserved legacy economics or the current prosumer net-billing arrangement.
Ask which exact regulation or SRO date their proposal assumes and whether the system is being modeled as a new prosumer application or around an existing legacy agreement.
Ask both to recast the economics under the same current-rule export assumption and the same conservative self-consumption scenario so you are comparing strategy rather than sales framing.
Sources and notes
Continue with adjacent guides
Buyer action
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