The government has announced significant changes to its solar energy framework, replacing the existing net metering system with a net billing mechanism for solar consumers under the newly approved Nepra Solar Consumer Rules 2025.
The revised policy, approved by the Ministry of Energy after consultations with stakeholders, introduces a new billing structure under which solar consumers will be paid a fixed per-unit rate for electricity supplied to the national grid, instead of receiving unit-for-unit credits as under the net metering regime. According to officials at the National Electric Power Regulatory Authority (Nepra), the per-unit rate has been set at around Rs11.
Sources said the new rules also reduce the contract duration for solar consumers from seven years to five years.
In a major regulatory shift, the updated policy removes the previous exemption from licensing. Under earlier rules, domestic, commercial and industrial consumers with solar systems of up to 25 kilowatts were not required to obtain a Nepra licence.
The new framework makes licensing mandatory for all solar installations, regardless of capacity.
Officials said the changes are aimed at developing a more structured and sustainable solar energy regime, ensuring regulatory oversight while providing standardised compensation for electricity supplied to the grid.
Energy experts note that while the move from net metering to net billing may affect returns for small-scale solar users, it is expected to improve the management of distributed solar generation and address challenges faced by power distribution companies.
The Nepra Solar Consumer Rules 2025 are expected to come into force in the coming months, with existing and prospective solar consumers advised to review the new billing and licensing requirements.
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