The federal government has decided to process all pending net metering applications submitted by Feb 8 under the previous regulatory framework, according to a statement issued by the Power Division on Thursday.

It directed that applications received by the cut-off date be handled under the old rules, instructing all electricity distribution companies, including K-Electric, to implement the decision immediately.

A total of 5,165 applications had been submitted to distribution companies, including K-Electric, by February 8. If approved, they would add 250.822 megawatts of capacity to the national grid.

The division said the move removes uncertainty surrounding the pending applications and directed authorities to ensure transparency in the processing of requests. Consumers were advised to lodge complaints through the designated helpline at 188.

Earlier, the National Electric Power Regulatory Authority (Nepra) issued a draft of amendments to the Solar Policy 2026 that roll back some controversial changes to its net metering policy.

Nepra recently significantly revised the terms of contracts for all existing and future net-metered solar consumers — or prosumers — in an effort to manage rising solar energy penetration and protect an expensive and inefficient state-owned power network.

It abolished the exchange of electricity units in solar net metering. At present, the buyback rate for solar net generation is Rs25.9 per unit, which may be reduced to Rs11 per unit. The contract period has been reduced from seven to five years. The burden of capacity payments is being shifted to solar consumers now.

Under the new rules, utilities will be required to purchase excess electricity from prosumers, 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, effectively ending one-to-one net metering.