FESCO Solar Grid Policy — Updated February 2026

Net Metering & Net Billing
Faisalabad — What You Need to Know

Pakistan's solar grid policy changed on February 8, 2026. Existing net metering users are fully protected. New solar applicants now connect under Net Billing. This guide explains both systems, the current buyback rates, and what it means for your solar investment.

What Changed in February 2026?

NEPRA (the National Electric Power Regulatory Authority) introduced the Prosumer Regulations 2025, effective from February 8, 2026. This replaced the original Net Metering Regulations of 2015 for all new applicants. The core change: new solar customers no longer get one-to-one credits for exported electricity — they now sell surplus power at a fixed buyback rate under a Net Billing mechanism.

If you applied before February 8, 2026: You are fully protected. Your net metering agreement stays in place for its full 7-year term at the rate of Rs. 25.32/unit. No action needed.

Net Metering vs. Net Billing — Side by Side

FeatureNet Metering (Pre-Feb 2026)Net Billing (From Feb 2026)
Who it applies toExisting users (connected before Feb 8, 2026)All new applicants from Feb 8, 2026
Export buyback rate~Rs. 25.32 per unit~Rs. 10–13 per unit (NAEPP rate)
How billing worksExport units offset against import units (1:1 credit)Consumption billed separately; exports paid at fixed rate
Contract term7 years5 years
Meter typeBidirectional meterSmart meter (mandatory)
System size limitUp to 1.5x sanctioned loadUp to sanctioned load (no oversizing)
Estimated payback period5–6 years8–12 years
Unused credit rolloverRolls forward indefinitelyQuarterly payment for net exports

Is Solar Still Worth It Under Net Billing?

Yes — and here is why. The biggest savings from solar have always come from avoiding grid electricity, not from selling it back. Grid electricity in Pakistan now costs Rs. 40–65+ per unit for residential consumers (plus surcharges). Solar generation costs you roughly Rs. 8–10 per unit over the system's lifetime.

The key is right-sizing your system to your actual consumption. A well-designed system that matches your daytime usage means you self-consume 70–80% of what you generate. Only the remaining 20–30% is exported at the lower Rs. 10–13/unit buyback rate. The math still works strongly in your favour.

A hybrid system with battery storage reduces grid dependency even further — you store midday surplus and use it in the evening, maximising self-consumption and minimising exports at the lower buyback rate.

Saigal Solar's recommendation: Under Net Billing, system sizing matters more than ever. We design every system around your actual consumption data and bill history — not oversized systems chasing export revenue. Contact us for a free load analysis.

How to Connect Under Net Billing (New Applicants)

1

Install an Approved Solar System

Your system must use NEPRA-approved inverters and be installed by a registered company. Saigal Solar is a fully registered installer — we ensure your system qualifies from day one.

2

Prepare Documentation

CNIC copy · Latest FESCO bill · Property documents · System single-line diagram (SLD) · Inverter NEPRA approval certificate · Installer registration certificate · Completed Prosumer application form.

3

Submit Prosumer Application to FESCO

Submit the prosumer connection application to FESCO's Engineering Department with all documents and the application fee. We handle this on your behalf.

4

FESCO Technical Review & Site Inspection

FESCO engineers review documentation and conduct a site visit to verify the installation meets safety and technical standards.

5

Smart Meter Installation

FESCO installs a bidirectional smart meter (now mandatory under Prosumer Regulations 2025) that measures both import and export accurately. Cost is approximately Rs. 15,000–25,000 and is borne by the consumer.

6

Prosumer Agreement & Activation

FESCO issues a 5-year prosumer agreement and activates the net billing setup. Your monthly bill shows consumption charges and export credits separately. Quarterly payments are made for any net exports.

Quick Reference: Faisalabad (FESCO) Prosumer Facts

ItemDetail
Applicable regulationNEPRA Prosumer Regulations 2025 (from Feb 8, 2026)
Export buyback rate (new applicants)~Rs. 10–13/unit (National Average Energy Purchase Price)
Export buyback rate (existing users)Rs. 25.32/unit (protected until contract expires)
Contract term (new)5 years
Application timeline6–12 weeks from application to smart meter activation
Maximum system sizeUp to sanctioned load (no oversizing allowed for new applicants)
Smart meter costRs. 15,000–25,000 (consumer pays)
DISCO in FaisalabadFESCO (Faisalabad Electric Supply Company)
Number of existing net metering users (Pakistan)~283,000 (protected under old rates until ~2030–31)

Let Saigal Solar Handle Your Prosumer Application

We have completed dozens of FESCO solar grid connection applications in Faisalabad — residential, commercial, and industrial. When you install with us, we include the complete prosumer application service at no extra charge. We prepare all documentation, submit the application, coordinate FESCO site visits, and follow up until your smart meter is installed and your account is activated.

Install Solar the Right Way Under New Rules

Net Billing changes the economics — but a correctly sized system from Saigal Solar still delivers strong savings. We design systems to maximise self-consumption so you benefit most from every unit you generate.

Net Metering & Net Billing — Common Questions

Net Metering (the old system) gave you a one-to-one credit: every unit you exported was credited at the same rate as what you consume (~Rs. 25.32/unit). Net Billing (from Feb 8, 2026) pays a separate, lower fixed rate for exports (~Rs. 10–13/unit) — your consumption and export are billed independently. Existing net metering users keep their original rates.
No. If you were connected before February 8, 2026, your original net metering agreement remains fully in force for the complete 7-year term. You continue receiving Rs. 25.32/unit for exported electricity. Approximately 283,000 existing net metering users across Pakistan are protected until around 2030–31.
Yes — because the biggest saving is from not buying expensive grid electricity (Rs. 40–65+/unit), not from selling back at Rs. 10–13/unit. A right-sized system self-consumes 70–80% of its output, making exports a small part of the total picture. Add battery storage and payback periods become competitive again. We design every system to maximise self-consumption.
New applicants receive the National Average Energy Purchase Price (NAEPP) determined by NEPRA — currently approximately Rs. 10–13/unit. This rate is reviewed periodically. Existing net metering users receive Rs. 25.32/unit until their 7-year contract expires.
Absolutely. Under Net Billing, maximising self-consumption is key. A hybrid system with battery storage stores midday surplus and uses it in the evening — reducing what you export at the lower buyback rate, and reducing what you import from FESCO at the higher grid rate. Hybrid is the smartest choice for new connections in 2026.
The process typically takes 6–12 weeks from submission to smart meter installation and account activation. Saigal Solar handles the entire application on your behalf — document preparation, submission, FESCO liaison, site visit coordination, and follow-up.