Net Metering in Islamabad and Rawalpindi: IESCO Process and 2026 Rules

If you add solar in Islamabad, Rawalpindi or another IESCO area in 2026, exporting surplus power now works under net billing, not the older net metering. Units you import from IESCO are billed at your tariff, and units you export are bought at the national average energy purchase price. This guide summarises NEPRA's Prosumer Regulations, 2026. Rules and fees can change, so confirm the details with IESCO before you apply.

What Changed in 2026

On 9 February 2026 NEPRA replaced the 2015 Distributed Generation and Net Metering Regulations with the Prosumer Regulations, 2026. The same national rules apply to every distribution company, so IESCO customers follow the same framework as customers of K-Electric or LESCO. Older guides, including many still ranking on Google, describe the previous system.

• Units IESCO supplies to you are billed at your applicable tariff. Units you export are bought at the national average energy purchase price, which NEPRA can revise during the agreement.
• If the value of your exports is greater than the value of your imports in a billing cycle, the credit is carried to the next cycle or paid to you quarterly.
• The agreement term is five years from commissioning, renewable for further five-year terms by mutual consent.
• Agreements signed under the old rules keep their old billing terms until they expire. That protection ends if the system is materially modified so that its maximum output changes.

In practice, a unit you use yourself saves you the full tariff rate, while a unit you export earns the lower purchase price. That favours a system sized to cover your daytime use.

Who Can Apply

• The regulations name 3-phase 400 V and 11 kV consumers (domestic, commercial, industrial, agricultural, general services and single-point bulk supply) as eligible applicants. If you have a single-phase connection, ask IESCO whether it qualifies
• Solar, wind or biogas systems up to 1 MW are covered
• Your system capacity cannot exceed the sanctioned load of your premises

Approval Depends on System Size

• 25 kW or below: NEPRA concurrence is not required. IESCO approves the application, and no concurrence fee applies
• Above 25 kW: NEPRA concurrence is required, with a one-time fee paid to NEPRA. NEPRA decides within seven working days of receiving the documents
• 250 kW or above: a load flow study by IESCO or a PEC-registered consultant must be submitted
• If the distributed generation already connected to your distribution transformer has reached 80% of its rated capacity, IESCO will not accept the application

If concurrence applies and generation does not start within six months, a fresh concurrence is needed. A material change to the system, such as raising its maximum output, also needs notice to IESCO and, where applicable, fresh concurrence.

Equipment Requirements

• Grid-connected inverters that comply with the UL 1741 interconnection standard
• Automatic prevention of reconnection to the grid until voltage and frequency are stable
• A manual disconnect device with a visual break
• A meter that measures power in both directions, or two separate meters
• Protection and control diagrams approved by IESCO before commissioning

You pay for the interconnection facilities up to the interconnection point, including the meter. If IESCO does not have a meter available, you can buy one yourself, subject to testing by IESCO before installation.

How to Apply: Step by Step

1. 1Choose an installer and have the system designed around your sanctioned load and daytime use.
2. 2Submit the application and documents to IESCO. The company must give you its forms and information free of charge within two working days of your request.
3. 3IESCO acknowledges the application within five working days and tells you whether it is complete. You then have three working days to supply anything missing.
4. 4IESCO completes an initial technical review within fifteen working days. If the system is not technically feasible, it returns the application with reasons.
5. 5You and IESCO sign the interconnection agreement within seven working days. IESCO then sends you a connection-charge estimate within seven working days, and you pay it within seven.
6. 6IESCO installs and commissions the interconnection facility within fifteen working days of your payment. For systems above 25 kW, NEPRA concurrence is obtained before billing under the arrangement begins.
7. 7IESCO may inspect and test the system before it runs in parallel with the grid. Give at least fifteen working days' notice that installation is complete.

Adding up the maximum time for each step comes to roughly eleven weeks of working days. Actual time varies with IESCO's workload and whether your documents are complete, so ask for a realistic timeline before you commit.

Your Obligations and IESCO's Rights

• You must operate and maintain the system following prudent electrical practice and carry third-party liability insurance
• IESCO can disconnect immediately in the event of a fault, or on thirty days' written notice for maintenance, non-compliance or the end of the agreement
• You cannot use IESCO's interconnection facilities to sell power to anyone else
• IESCO may terminate the agreement on thirty days' notice with NEPRA's prior approval, and you may terminate it with written notice

Is Exporting Still Worth It?

For most homes and businesses, the biggest saving comes from using your own solar power during the day, not from exporting it. A well-sized system that covers daytime consumption still cuts your bill substantially, and the benefit is largest for households and businesses on the higher consumption slabs of IESCO's tariff. A larger system built mainly to export earns much less per unit than one that offsets your own use.

What to Ask Your Installer

• Which rules apply to my application, and who prepares and submits it to IESCO?
• Is my connection 3-phase, and does my sanctioned load allow this system size?
• Is the inverter UL 1741 compliant and does it prevent reconnection until the grid is stable?
• How is the system sized for my daytime use, given the export price?
• What happens if IESCO asks for changes or returns the application?

MaxGreen Energy designs systems for homes, businesses and factories in Islamabad and Rawalpindi and supports IESCO applications. We offer a free site assessment.

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