net metering in Pakistan

How Net-Metering Works in Pakistan?


Pakistan has long suffered from the long hours of load shedding but solar is now a new solution. The rapidly growing use of solar energy has provided a sigh of relief to industries, home consumers, and every stratum of people from long hours of no power and hefty bills.

Now not just you can cover your own needs from solar energy but can also sell the excessive energy and get a significant amount as well. In the solar energy business, one term is often very common which is “Net Metering”. Net metering is a policy by the concerned authorities of government for the consumers who want to set up a renewable energy facility. Net Metering allows the renewable energy consumers to sell the excessive power to national gird in case if it surpasses their own needs. The government uses this additional power at the time of peak hours or when there is a shortage of electricity generation. The consumers receive payments for the excess energy exported to the grid or receive lower bills.

Net-Metering Policy in Pakistan

NEPRA announced net-metering regulations in September 2015, allowing DISCOs in Pakistan to purchase excess units of electricity produced by users and net them off against grid units consumed. According to these laws, any national grid customer with a three-phase connection can use net metering for small-scale (1kW to 1MW) renewable energy projects. Renewable energy is a long-term option for electricity generation. During the life of the system, solar PV technology provides access to affordable electricity. Residential and commercial consumers can reduce their electricity expenses by switching to Renewable Energy (RE).

In terms of power generation, profits, and investment, net metering in Pakistan offers significant financial benefits. You can easily participate in the procedure, which is both straightforward and convenient. The first step is to set up a net metering-compliant solar system, which is not difficult. To apply, you must contact the appropriate power company. The consumers must follow these rules:

  • The relevant electric company will inspect and issue the NOC after everything is in order.
  • After that, you’ll have to sign a contract with the electric company.
  • After that, you will be assigned a generation license and your net meter will be activated.
  • The final step is to activate your net meter, after which you can participate in the grid as needed
Incentives and Rules:

The electricity policy in Pakistan is known as net metering for Pakistani users who own or plan to build a renewable energy project. This power legislation allows them to generate electricity from solar energy not just for their own use, but also to sell the excess to the national grid. This excess electricity is then utilized during periods of low usage or when the RE facility does not produce enough electricity to meet customer demand.

A consumer will receive payments in such instances in one of two ways:

  • Less electric bill payment
  • Payments for the energy you don’t use.

The appropriate DISCO determines how it reimburses consumers. NEPRA issued net-metering regulations in September 2015, allowing Pakistani DISCOs to purchase surplus power generated by their customers and offset it against the grid’s consumed units.

According to these regulations, any customer of Pakistan’s national grid with a three-phase connection can establish a small-scale net-metering facility for renewable energy ranging from 1kW to 1MW.

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