Govt ends net metering: What solar users must know

NEPRA will now require power utilities to purchase surplus electricity from prosumers
State Electricity Company officials stands between solar cell panels at the largest solar power plant in Indonesia, at Oelpuah village in Kupang. — Reuters
State Electricity Company officials stands between solar cell panels at the largest solar power plant in Indonesia, at Oelpuah village in Kupang. — Reuters

The National Electric Power Regulatory Authority on Monday changed the terns of contracts for all existing and future net-metered solar consumers, named as 'Prosumers, to get rising solar energy penetration and safeguard an expensive and inefficient state-owned power network. 

Under the Nepra (Prosumer) Regulations, 2026, Nepra will now require power utilities to purchase surplus electricity from prosumers, including households, businesses and industries generating up to one megawatt at the national average energy purchase price, while selling electricity back to them at the applicable consumer tariff.

New prosumers will be granted only five-year contracts, and their export units will be accepted at Rs11 per unit compared to Rs26 under the existing contracts. 

Consumers’ import units from distribution companies (Discos) will now be billed separately at Rs37-55 per unit, depending on the relevant slab, excluding taxes, surcharges and duties.

Older solar consumers will get Rs25.32 per unit, while new consumers will get Rs8. 13 per unit. The authority has capped the maximum size of a distributed generation facility at one MW and limited capacity to the sanctioned load of the consumer. 

A major technical restriction bars new connections if generation on a distribution transformer reaches 80% of its rated capacity, while systems of 250 kW or above must undergo a mandatory load flow study.

Moreover, Nepra has granted itself powers to revise purchase rates during the life of agreements, issue binding directions, demand operational data, impose penalties, and relax or modify provisions where necessary.