You may have heard about net metering but how does it works in Pakistan and impacts the electricity bill? Don’t worry, we are here to guide you. First, let’s discuss what exactly is net metering.
It is a billing mechanism where customers are only invoiced for their net consumption throughout a billing cycle under standard net metering, which means that any energy they consume from the utility can be offset later by energy produced. The net metering system was first introduced in the United States in 1979. Over the years, this technique has become popular and is now adopted in countries like Pakistan. Due to scarcity and external factors, the energy prices fluctuate eventually causing the electricity bills to rise. However, now people are shifting to solar power. The net metering solar technique is a great way to cut down the electricity bill costs.
Working of Net Metering
The net metering works best in the solar installation. Even if a customer’s solar installation only produces energy during the day, they can use the excess energy produced during the day to cancel out their overnight usage and reduce their electric bill to almost nothing. Moreover, they can exchange or sell the excess energy produced by the solar power system. However, if someone wants to take the benefit of net metering, especially in Pakistan, they should shift to solar power. Goforsolar.pk offers solar power solutions that include solar inventors and trusted vendors and installers. So contact them today and get the benefit of net metering Pakistan.
The buying and selling of the units depend on the consumption and production of energy. In Pakistan, generally summers are the longest. Thus, the solar power system works fine. Due to long sunny days, the production of solar energy is not a problem but it depends on the capacity of the solar panels and inverters. The net metering rates in Pakistan vary according to residential, commercial, and industrial use. The authorities charge differently to benefit all the groups accordingly.
The net metering in Pakistan is the electricity sold to the grid is not valued at the same rate as electricity purchased from the grid in this most basic type of net metering. Second, the utility bill is entirely made up of energy charges; the amount a customer is charged is solely based on their energy consumption, and those charges, critically, can be offset by solar production. There are no fixed energy charges in this situation (charges which cannot be offset, and which may or may not correspond to the amount of energy used). Finally, credits from surplus solar net metering in Pakistan can be carried forward indefinitely to future months.
Benefits of Net Metering
In Pakistan, to avail the benefits of net metering the consumers have to reduce the amount of power to be purchased from the district’s distributors by creating energy to meet their own needs through solar power generation. The savings on self-produced electricity for the customer’s own use have a price that is similar to the distributors retail (off-peak) tariff, which includes transmission, production, distribution, system loss, taxes, subsidies, and other charges. For example, for net metering lahore, LESCO will set the price. The customers can also get a credit on their next billing cycle’s power bill for any surplus electricity they export to the Distribution Company, that is up to the Distribution Company’s blended generation price, but not for other generation modifications.
The question arises that for the the electricity customer produces will it be deducted from the electricity that they purchase from the grid? The customer will receive a monthly statement detailing his net export and import, as well as the net power exported to the grid and the net energy imported from the grid according to the net metering price in Pakistan. However, In the case of a net import bill, the DG facility will be charged for the net kWh at the applicable rate.
The customers are often concerned what would happen if the amount of energy exported exceeds the amount of energy imported? In this case, the net kWh will be credited to the DG’s next billing cycle. The net metering system is an efficient way to reduce the bills so if the customer exports excess power to the grid then, every month, the Distributed Generator will receive a net export statement, and the Distributing Company will be responsible for paying for this net export electricity on a quarterly basis using the off-peak tariff in Pakistani rupees to the customer.
Net metering Pakistan is beneficial for customers that can reduce electricity bills to even zero too. The process in Pakistan is not difficult. The customer has to contact their district’s electricity distributor to apply and compete the necessary documentation.
So, if you are looking to benefit from net metering, get your hands on solar energy solutions from goforsolar.pk and enjoy the advantages of net metering solar.