What is Net Metering and How to apply in Pakistan?

Net metering, also known as net energy metering or NEM, is an electricity policy for consumers who own or plan to have a Renewable Energy (RE) facility that allows them to produce electricity (using wind and solar) for their own use and sell the excess to the national grid, setting-off units of electricity consumed during off-peak hours or when the RE facility’s production is insufficient to meet the consumer load. According to the terms of the contract with the relevant distribution company, the consumer will either pay a lower utility bill or get payment for access energy exported to the grid. Rooftop solar panels are a great method to save money because of net metering solar system.

Solar panels for gathering electricity is one of the most popular source due to its advantages. The cost of solar panels has dropped dramatically over the last few years because they are more easily available. That’s why people are switching to solar energy. People all across the world and even now in Pakistan acknowledge how useful solar panels had proven to be for net metering system. The cost of installing solar panels in a certain space is determined by its power. The costs can be reduced when the power is not utilized properly through net metering policies.

The net metering is a control system that keeps checks and balances in place, particularly for individuals who have solar heating panels on their roofs. It also saves electricity in the long run. This essentially implies that homeowners may monitor and limit the amount of energy they consume during the day and at night. Net metering Pakistan is an effective way to store energy for times like load shedding. 

Net Metering in Pakistan

The net metering policy has gained attention in Pakistan. On September 1, 2015, the NEPRA (National Electric Power Regulatory Authority) published the official Distributed Generation and Net Metering Regulations. 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. The net metering rates in Pakistan varies for residential, commerical and industrial consumers.

It is less for industrial varying between Rs. 12-15/unit. For residential the unit rate varies between Rs. 18-20/unit and for commercial the unit rate varies from Rs. 22-25/unit. The net metering In Pakistan is the first completely implemented policy instrument of the Policy for Development of Renewable Energy for Power Generation. 

The owner gets invoiced for the “net” energy used in net metering. That is the difference between the total energy produced by the system and the total energy used. Net metering calculates the difference between excess power exported to the grid and total power used by the owner. As a result, surplus energy generates money, while energy shortages are met by the grid. Each distribution company may have distinct rules regarding the sort of net metre used to record electricity so net metering Pakistan varies as per the unit. 

How to apply?

Net Metering Application:

Any applicant who meets the distributed generator standards as described in NEPRA’s regulations must submit his or her application. It must be together with the needed paperwork, to the appropriate distribution provider.

Application acknowledgement:

The distribution provider will acknowledge the receipt of the application and tell the applicant whether the application is properly completed. This will be completed within 5 working days after receiving the application. In the application, the applicant informs the renewable energy i.e. solar, wind, etc. However, for solar net metering in Pakistan, the applicant will reveal all the information about its solar energy sytem at home. 

If an application form is incomplete: If any applicable information is missing or you do not submit needed documents, the applicant will be notified to deliver such information or documents to the distribution provider within 7 days after being notified.

Initial Evaluation: Once the distribution provider receives the completed application, it will undertake a preliminary review to see if the applicant qualifies for the interconnection amenity while meeting the extra requirements. Then after the approval, the charges will be informed as per the net metering rates in Pakistan

Technical feasibility in the preliminary review: If the first evaluation indicates that the planned facility is technically infeasible, the distribution provider will return the application and inform the applicant of the reason.


If the distribution provider office is satisfied that the application meets the requirements for distributed generator status, the provider and the applicant will enter into an agreement. 

Licensing for generation

Along with the application for issue of a generating license, the provider office will transmit a copy of the agreement between the applicant and the provider to NEPRA and enable net metering system for applicant. 

Estimated Connection Charge

If the provider believes that network upgrading/modification is necessary following the agreement. Then the applicant will receive a Connection Charge Estimate (CCE) from the provider for the planned connectivity facility. It will be up to the interconnection point including meter installation. The charges will be according to the net metering Pakistan. 

Interconnection facility installation

After the applicant pays, the provider will build and commission the planned interconnection facility after NEPRA confirms the generating licence to the distributed generator.

Net metering is an effective technique to save the electricity. It is encouraged to use net metering solar as it assures that the energy you generate at home is not wasted, if produced in surplus. However, one can purchase solar inverters from goforsolar.pk and get solar system and get benefit from net metering. 

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