Net Metering vs Gross Metering vs Net Billing: The Difference
Net metering swaps exported units against imported units one-for-one. Gross metering sells all your solar units to the grid and you buy all your use back at the normal tariff. Net billing, which NEPRA introduced for new solar users in February 2026, counts both but prices them differently: imports at your tariff, exports at a lower national average purchase price. Here is how each works and why it matters.
Updated 12 November 2026
What is net metering?
Under net metering, a two-way (bidirectional) meter records units you take from the grid and units you send back. At the end of the month the two are netted: if you imported 500 units and exported 400, you pay for 100. One exported unit was worth exactly one imported unit.
Pakistan ran this system under NEPRA's 2015 regulations. It made solar very attractive because the grid acted like a free battery. For new applicants it ended on 9 February 2026; see our full net metering and net billing guide (Net Metering and Net Billing in Pakistan (2026 Rules)).
What is gross metering?
Under gross metering, everything your panels make goes to the grid and is paid at a set export rate. Everything your home uses is bought from the grid at the normal tariff. Two separate readings are kept: generation and consumption.
Gross metering protects the utility because it buys power at a fixed rate and sells at retail rates, but it removes most of the benefit of using your own solar. It was discussed in Pakistan's policy debates around 2024, and many people still search for it, but it is not the system that NEPRA notified for new rooftop users in 2026.
What is net billing (the 2026 system)?
Net billing sits between the two. Your own use of solar behind the meter is not touched; you simply buy less. What the meter sees is priced separately:
- Units imported from the DISCO are charged at your applicable tariff.
- Units exported are credited at the National Average Energy Purchase Price (NAEPP), which is much lower than the retail tariff.
- Only the money difference shows on your bill.
NEPRA can revise the export rate during the agreement. Check the latest figure with your DISCO or on nepra.org.pk.
Side-by-side comparison
- Exported unit value: net metering, equal to an imported unit; gross metering, a fixed export rate; net billing, the lower national average purchase price.
- Self-use of solar: net metering and net billing, fully counts as saving; gross metering, not counted, everything is sold.
- Meter: net metering and net billing, a bidirectional (green) meter; gross metering, separate generation and consumption metering.
- Best design: net metering, export as much as you like; net billing, use your own solar first and store the rest in a battery; gross metering, depends only on the export rate.
- Status in Pakistan: net metering, old contracts only; net billing, new applicants since February 2026.
Why the difference matters for your design
Under net billing, a unit you use yourself saves the full tariff, while a unit you export earns far less. So the best system in 2026:
- Size the panels mainly for your daytime use.
- Add a battery to move solar into the evening.
- Run heavy loads such as the AC, pump and washing machine in sunny hours.
- Treat export credit as a bonus.
That is exactly what a hybrid system with a lithium battery does. Our 10.35kW lithium system with a Deye three-phase hybrid can export under approval, while smaller packages use all solar at home and need no export paperwork.
Is net metering still worth applying for?
For new applicants the choice is net billing or no export. Net billing still helps if you are three-phase, your daytime solar is much larger than your use, and the paperwork cost is small compared to the credit. For most single-phase homes, an off-grid hybrid that never exports is simpler and avoids the application. Our payback guide (Solar Payback Period in Pakistan (2026)) shows how to run the numbers with your own bill. Rules change; confirm with your DISCO. Last checked: October 2026.
