MEPCO Net Metering 2026: Policy, Rates, Cost and Online Application

Net metering has become a major topic for MEPCO electricity consumers in recent years. With rising power tariffs and frequent bill fluctuations, many households and businesses are now looking for ways to reduce their monthly electricity costs. This is where net metering comes in.

For MEPCO users, net metering allows you to generate electricity through solar panels and send excess units back to the national grid. Instead of wasting unused solar power, those units are adjusted against your electricity bill.

As a result, your payable bill can be significantly reduced, especially during summer months when solar production is high. People living in MEPCO regions often search for clear and reliable information because the process involves approvals, technical requirements, and billing adjustments.

Understanding how net metering works under MEPCO helps consumers make better decisions before investing in a solar system.

What Is Net Metering?

According to MEPCO, net metering is a billing mechanism that allows electricity consumers to export surplus solar energy to the grid and receive credit for it. When your solar system produces more electricity than your home or business consumes, the extra units are sent to the MEPCO grid instead of going to waste.

MEPCO installs a bi-directional (net) meter that records two things separately:

• Electricity imported from the grid
• Electricity exported back to the grid

At the end of each billing cycle, MEPCO adjusts exported units against imported units. If you consume more than you export, you pay only for the net units. If you export more than you consume, the extra units are carried forward as credit.

It’s important to understand that net metering does not mean MEPCO pays you the same rate it charges for electricity. The adjustment is done under NEPRA-approved rates, which MEPCO follows strictly.

History of Net Metering in Pakistan & MEPCO’s Role

Net metering in Pakistan is not a new concept, but its adoption has increased rapidly over the last decade. The idea was introduced to encourage renewable energy, reduce pressure on the national grid, and allow consumers to actively participate in power generation. As electricity demand continued to rise and fuel costs increased, solar energy became a practical solution for many households and businesses.

The formal framework for net metering was introduced by NEPRA (National Electric Power Regulatory Authority) in 2015. This allowed distribution companies (DISCOs), including MEPCO, to offer net metering facilities to eligible consumers. Initially, the process was slow due to limited awareness, technical challenges, and high solar installation costs.

MEPCO gradually implemented net metering across its operational regions, covering large parts of South Punjab. Over time, the process became more streamlined. Application procedures improved, bi-directional meters became more accessible, and coordination between solar vendors, MEPCO, and NEPRA strengthened.

Today, MEPCO plays a key role in facilitating net metering by:

• Verifying consumer eligibility
• Inspecting installed solar systems
• Installing approved net meters
• Adjusting exported and imported units in monthly billing

With rising electricity tariffs, net metering has moved from being a “luxury option” to a practical necessity for many MEPCO consumers.

Is Net Metering Legal in Pakistan? (NEPRA Rules and MEPCO Compliance)

Yes, net metering is completely legal in Pakistan and is regulated under official NEPRA rules. The NEPRA Distributed Generation and Net Metering Regulations provide the legal framework that allows electricity consumers to generate power using renewable energy sources, mainly solar, and export surplus electricity to the grid.

Under these regulations:

• Consumers can install on-grid solar systems
• Excess electricity can be sold to the grid
• Distribution companies like MEPCO are required to facilitate net metering

MEPCO follows NEPRA’s regulations strictly. This means all net metering approvals, meter installations, and unit buyback rates are aligned with NEPRA policies. Consumers cannot bypass MEPCO or apply independently without following the prescribed process.

It is important to note that:

• Net metering is only allowed with approved on-grid systems
• The solar inverter and equipment must meet NEPRA and MEPCO standards
• The installed capacity must fall within allowed limits
• Net metering contracts are issued for a fixed duration, subject to renewal

As long as a consumer meets NEPRA’s eligibility criteria and follows MEPCO’s technical and documentation requirements, net metering remains a legally protected and government-backed facility in Pakistan.

Eligibility Requirements for Net Metering with MEPCO

Before applying for net metering, it is important for MEPCO consumers to understand whether they actually qualify. Net metering is not automatically granted to every electricity user. MEPCO follows NEPRA-approved eligibility criteria to make sure the grid remains safe and billing remains accurate.

To be eligible, a consumer must already have a valid MEPCO electricity connection. The connection should be active, functional, and registered under the applicant’s name or with proper authorization. Both residential and commercial connections can qualify, as long as the ownership and billing records are clear.

Another key requirement is the type of solar system being installed. MEPCO only allows on-grid solar systems for net metering. Off-grid systems and battery-only setups are not eligible because they do not synchronize directly with the national grid. The solar inverter must also be approved by NEPRA and compatible with MEPCO’s technical standards.

MEPCO also checks the consumer’s sanctioned load and billing history. If there are major unpaid dues or mismatches between the approved load and the proposed solar capacity, the application may be delayed or rejected. This is why many consumers are advised to review their load category and clear outstanding bills before applying.

In simple terms, if you have a legal MEPCO connection, an on-grid solar system that meets technical standards, and a clean billing record, you are generally eligible for net metering.

MEPCO Net Metering Policy 2026

MEPCO’s net metering policy for 2026 is based on NEPRA’s national framework, with a strong focus on grid stability, consumer safety, and transparent billing. The policy has evolved over the years as solar adoption has increased across Pakistan, especially in MEPCO regions.

Under the updated guidelines, net metering is allowed only for renewable energy systems, mainly solar power. The installed capacity of the solar system must remain within the limits approved by MEPCO and NEPRA. This ensures that electricity export does not overload local transformers or distribution lines.

Billing under net metering follows a clear adjustment mechanism. Electricity imported from the grid and electricity exported to the grid are recorded separately through a bi-directional meter. At the end of the billing cycle, MEPCO adjusts exported units against imported units. Consumers are billed only for the net difference, not the total consumption.

The policy also defines the duration of the net metering agreement. Typically, MEPCO issues a contract that remains valid for several years and can be renewed if the consumer continues to meet technical and regulatory requirements. Any major changes in the solar system, such as capacity expansion or inverter replacement, must be reported to MEPCO for re-approval.

One important point many consumers overlook is that net metering does not mean selling electricity at retail prices. Buyback rates are approved by NEPRA and are usually lower than standard electricity tariffs. However, the real financial benefit comes from reducing imported units rather than earning from exports.

Overall, the 2026 MEPCO net metering policy aims to balance consumer savings with grid reliability. Consumers who follow the rules and use approved equipment can benefit from long-term bill reductions without legal or billing complications.

Benefits of Net Metering

Net metering offers several advantages for MEPCO electricity consumers, making it a practical choice for homeowners and businesses looking to reduce their electricity costs. Following are these benefits:

Energy Independence

Consumers gain more control over their electricity usage. Instead of being entirely dependent on MEPCO’s supply, solar generation allows households and businesses to offset their own demand. This is particularly useful during peak hours or power outages, as it reduces overall reliance on the grid.

Sustainable and Clean Energy Usage

By generating electricity through solar panels, consumers contribute to reducing carbon emissions and help the environment. This has become increasingly important as energy costs rise and awareness about climate change grows.

Net Metering Increases Property Value

Homes and businesses equipped with a certified solar system eligible for net metering are seen as more modern and energy-efficient. This can make properties more attractive to buyers or tenants who are conscious of electricity costs and sustainability.

Common Problems and Solutions for MEPCO Net Metering

FAQs

Conclusion

In conclusion, MEPCO net metering is a reliable and legal way for electricity consumers in Pakistan to save on monthly bills, gain energy independence, and contribute to a cleaner environment.

By understanding eligibility requirements, following MEPCO’s 2026 policy guidelines, and installing a compliant solar system, consumers can fully benefit from reduced electricity costs while staying NEPRA-compliant.

Whether you are a homeowner or a business, net metering offers long-term financial savings and added property value, making it a smart investment in sustainable energy. For smooth approval and maximum benefits, ensure your application is complete, your system meets technical standards, and billing is monitored regularly.