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net metering working process in Pakistan

Net Metering in Pakistan

As of June 2024, nearly 157,844 households in Pakistan have already installed a net meter alongside their existing solar systems.

The 294% increase in net meter installations over just one year is the answer to solar owners who complain, “I still have to pay thousands in electricity bills every month, even after installing solar panels at home.“

And the reason behind hefty electricity bills is simple. Your solar Panel system is not integrated with the net meter. Therefore,  Without a net meter, your excess generated electricity goes to waste, and you have to rely on grid electricity at night at much higher prices.

With Net Metering in Pakistan, you too can achieve zero electricity bills! 

 

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Simplifying the Net Metering Concept?

What is Net Metering? If you’re thinking about going solar, you’ve probably asked this question, But don’t worry You’re not alone—almost every solar buyer in Pakistan has the same question!

We make Net Metering easy to understand for our customers. It’s a government initiative that allows solar owners to sell excess electricity back to grid stations and receive credits in return.

A Net Meter (also known as a Green Meter) is installed at your premises to track the extra units you send back to the grid. In return, you receive compensation, which offsets the electricity you use at night or when your solar panels aren’t producing power.

The Working Principle of Net Metering in Pakistan

A customer must have On grid or hybrid solar system installed before applying for the net metering in Pakistan. Because having a grid tied solar inverter is the foremost requirement to install the net meter. 

How Does Net Metering Work in Pakistan?

 

Once your net metering setup is complete, the power company installs a specialized “green meter” at your property. This net meter tracks both the electricity you consume and the excess energy you send back to the grid.

How  Are You Compensated for Excess Electricity?

Net Billing

Most power companies use a net billing system to compensate homeowners. Your net meter calculates the difference between the electricity you use and the surplus energy you export. The power company then credits or charges you based on this net difference, which is reflected in your monthly electricity bill.

Solar Talks 6 Easy Step Net Metering Process

Net metering is a smart solution that allows you to share surplus solar energy with the power grid. Here’s how it works: when your solar panels generate more electricity than you need during the day, the excess power is fed back into the grid.

In return, you earn credits that you can use to draw electricity from the grid at night or during low solar production periods.

With a well-designed system, you can produce enough energy to offset your electricity consumption throughout the year—potentially eliminating your power bills. It’s an efficient way to cut costs while contributing to a cleaner, greener future.

1. Installation of Solar System

To take advantage of Net Metering, the first step is installing a solar energy system on your property. This enables you to generate renewable energy and become part of the Net Metering program.

2. Application Preparation

The journey officially begins with the application process. This step includes compiling all the necessary documents and fulfilling regulatory requirements. At Solar Talks, we provide end-to-end assistance, ensuring a smooth and hassle-free experience for our clients.

3. Inspection & NOC Issuance

Once your application is ready and approved, it is forwarded to the Punjab Energy Department for inspection and issuance of a No Objection Certificate (NOC) under SRO 892 (1) / 2015. This inspection ensures that your system meets all technical and regulatory standards.

4. Signing of Agreement

After receiving the NOC, the next step is signing a formal agreement with your regional power distribution company (LESCO/GEPCO or any other provider). This three-year agreement allows you to export surplus electricity from your solar system to the national grid.

5. Allotment of Generation License

Following the agreement, the documents are submitted to the National Electric Power Regulatory Authority (NEPRA) for verification. Once approved, NEPRA issues a Generation License, officially recognizing you as an independent power producer for three years.

6. Activation of Net Metering

With your Generation License in place, your Net Metering system is activated, allowing you to save on electricity costs while earning credits from the excess energy you generate

What are NEPRA's Net Metering Rules?

If you’re considering integrating a green meter with your solar system, here are some NEPRA net metering rules you need to know. 

The net metering process has already been discussed above, so let’s dive into billing and compensation under NEPRA’s rules

NEPRA Billing & Compensation Rule

When you install a green meter, the extra electricity your system generates automatically feeds back into the grid. According to NEPRA rules, your monthly electricity bill is calculated based on the units you consume and the units you sell

Monthly Bill Breakdown:

  • If you consume more than you produce, you’ll just pay the balance—like a normal electricity bill.
  • If you produce more than you use, the extra units get stored as credit for your next bill.

Getting Paid for Your Extra Power:
If your solar system has been producing more than you use for three straight months. At this point, your DISCO will actually pay you for the surplus energy—at off-peak tariff rates.

NEPRA Technical & Safety Standards Requirements

Before you start dreaming about unlimited free electricity, there are a few technical requirements that your system needs to meet. 

These aren’t just formalities, they ensure that the power you generate doesn’t mess with the national grid or cause safety hazards.

Standards You Must Follow:

  • IEC 61727: Your system needs to maintain stable voltage and frequency—no weird fluctuations that could cause outages.
  • IEEE 1547 & UL 1741: These are inverter standards, ensuring your system can safely connect and disconnect from the grid.

              NEPRA’s Grid Interconnection Regulations: These set the rules for how your system plugs into the national grid.

Anti-Islanding Protection – What is That?

Let’s say the main power grid suddenly goes down (which, let’s be honest, happens a lot in Pakistan during summer season). Without anti-islanding protection, your solar system would keep feeding electricity into the grid, which could be dangerous for lineman and repair workers who think the lines are dead.

That’s why your system must automatically shut down in these situations. It’s a safety feature for you, the DISCOs, and the grid.

DISCOs’ Obligations – What They Must Do

One of the biggest worries for solar consumers in Pakistan is bureaucratic red tape. Therefore, NEPRA ensures that the consumer does not get stuck in endless paperwork just to get their net metering system approved. That’s where NEPRA’s rules force DISCOs to make the process smoother.

What DISCOs MUST do:

  •  Approve your net metering application within one month (No more delays or excuses!)
  •  Inspect and certify installations to ensure they meet standards.
  •  Provide a clear billing breakdown—you should always know how much you’re paying (or earning!).

NEPRA Dispute Resolution & Penalties Rules

If you’re facing issues with your DISCO/ Electricity supplier company. maybe they’re not crediting your extra energy properly, or they’re unreasonably delaying your approval. What can you do?

What Happens if DISCOs Break the Rules?

  • Any failure to comply with NEPRA’s net metering rules can result in fines up to PKR 100 million!
  • This ensures that DISCOs follow the law and provide fair net metering services.

Benefits of Net Metering for Solar Owners.

1. One Time Investment, Lifetime Benefits

You only need to pay once to install a net meter at your place. As for net meter rates in Pakistan, the cost ranges from PKR 100,000 to 150,000, depending on your power authority (LESCO, GEPCO, K-Electric, etc.). But the benefits you get are not limited to just a year or two? It’s an investment that pays you for a lifetime, bringing a smile to your face every month. 

To make the process seamless, SolarTalks connects you with the best AEDB-certified solar companies for a fast and hassle-free Green Meter installation.

2. Build your Own Power Station

When you have the net meter, your solar system becomes just like your own power station. Now you can generate your own electricity, use it for free and can sell it to the grid to get compensation for the grid electricity you use at night.

Net Metering Tariff in Pakistan: How It Affects Your Savings

The net metering tariff is the rate at which you buy electricity from the grid and sell excess solar power back. This rate plays a crucial role in determining your savings, return on investment (ROI), and overall payback period for your solar system.

In Pakistan, the National Electric Power Regulatory Authority (NEPRA) sets the net metering tariff. However, it’s important to note that the rates at which NEPRA buys electricity from solar owners are lower than what consumers pay for grid electricity. This means while you do get compensated for excess power, the savings are still dependent on how much electricity you consume and send back to the grid

Gross Metering vs. Net Metering: Know the Key Difference!

Gross meter and net meter are two different terminologies, and people often consider a gross meter as a net meter.

Gross metering is a system under which all your solar panels’ generated electricity is first sent back to the grid, and then from that electricity, you are provided with power for your usage. This is totally different from the concept of net metering.

So far, gross metering isn’t applicable in Pakistan. So, be worry-free and enjoy the freedom of selling excess electricity back to the grid through your net metering facility. 

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