Net Metering Pakistan
Once it was a dream to not only use electricity for free but WAPDA pay us for using the free electricity, but now, the dream comes true! Yes, a process in which we can sell our surplus solar energy is called “Net Metering”. The second name of net meter is Green Meter. If your solar system is producing more electricity than you consume, you may send extra electricity back to the grid to adjust the credits in your electricity bill as well. You may be surprised to know that around 23,000 households have embraced the net metering facility across Pakistan.
What is Net Metering Pakistan?
Net Metering is a digital and electric device that lets you export your surplus solar energy back to the grid. Let’s explore its working; when your solar panels generate more energy than your requirement in the daytime, your net meter will send this surplus energy back to the grid. Similarly, during the night when your solar panels do not generate electricity for running your applications, you can draw your sold/exported electricity from the grid and vice versa.
Now, let’s understand this process with an example. Just imagine you are the owner of your shop and you have installed solar panels on the rooftop of your shop. These solar panels are efficient enough and are generating more electricity than your energy requirements (more than the shop’s appliances’ energy needs). Now, if you have installed a net meter, your electric meter will run backward and if it continues to run backward, the billing authority (WAPDA) will send your electricity bill in a negative amount which indicates that you will have to receive that negative amount from the WAPDA.
On the other hand, when you use electricity from the grid at night when solar panels do not generate electricity, the credits you use from the grid will be subtracted from your electricity bills. Now, there will be two further processes; if you use more energy at night than you sell back to the grid, you will have to pay the net bill amount to WAPDA. But on the other hand, if you use less electricity at night and send more energy to the grid during the day, you will have to receive the amount from the tariff.
The billing rate or unit price in net metering Pakistan is decided by the competent authority, the National Electric Power Regulatory Authority (NEPRA). Moreover, the compensation unit rate in a net metering facility is frequently less than the actual rate that WAPDA charges from the solar system owners while providing them the electricity from the main grid. In this article, you will get rid from your queries related to net metering Pakistan!
Net Metering Users in Pakistan:
As per NEPRA, it has been observed that 66% of net-metered electricity was sold to the WAPDA by domestic and small home users, not large businesses till June 2023 which is a huge figure. Now you will be surprised to know that the experts have said that this percentage (66%) is expected to be increased by June 2024. This means that Pakistanis are embracing net metering facility, showing that they really need solar energy to overcome their energy expenses and make passive income source.
Furthermore, over 23 thousands Pakistanis are using net metering Pakistan facility which is the highest number in the history so far!
What is the Net Metering Tariff in Pakistan?
The net metering Pakistan rates are known as tariffs which determines the financial benefits for both consumers and NEPRA. The current tariff in Pakistan is around Rs. 19.32/- per kilo-watt-hour (kWh).
Before costing the net metering Pakistan, it is very important to know about the peak and off-peak hours rates. Peak hours rates refer to the high electricity rates during the time of high electricity consumption demand. In Pakistan, the peak hours of electricity are from 5 PM to 10 PM. Similarly, off-peak hours are referred to as the lower electricity price when electricity demand is typically low. These off-peak hours are counted in Pakistan in the late night or early morning.
To understand the equation, it is important to have “know-how” about the procedures of net metering Pakistan of WAPDA for solar system owners. As your solar system generates electricity during off-peak hours (before 5 PM), the WAPDA buys your surplus electricity on the off-peak hours tariff while your most electricity consumption is during peak hours (5 PM to 10 PM). It must be noted that the peak hours slots may vary depending on the seasons.
You don’t need to be worried and confused between peak and off-peak hours rates. Here is the complete practical work that will help you get an idea about net metering tariffs. Let’s suppose that you have installed a 4 kW solar system in your house and it is producing 500 units of electricity per month. Out of 500, you use only 300 units, and the remaining 200 units are exported to the electric grid. As these units are produced during off-peak hours, their unit price will also be calculated on the off-peak hours rate.
Now suppose, there is no enough sunlight on some specific days and you have to buy electricity of 50 units from the grid during off-peak hours then your peak-hours bill will be as per following;
Calculations of Net Metering Pakistan:
At the tariff of Rs. 19.32/-;
Off-Peak Hours Net Bill = Electricity Imported to Grid – Electricity Sent to the Grid
Off-Peak Hours Net Bill = 50×19.32 – 200×19.32
Off-Peak Hours Net Bill = 966 – 3,864
Off-Peak Hours Net Bill = Rs. -2,898/-
On the other hand, solar systems do not generate electricity at night and you have to purchase the electricity from the grid (WAPDA) by remembering that the rate of this electricity will be calculated on peak hours. For example, you are purchasing 50 units of electricity from the grid by considering the peak hours unit rate of Rs. 28 then your monthly electricity bills will be as;
The net peak hours bill will be calculated as;
Net Peak Hours Bill = electricity imported x tariff
Net Peak Hours Bill = 50×28 = Rs. 1,400/-
Now you will get the monthly bill as per the following calculations;
Net Monthly Bill = Net Peak Hours Bill – Off-Peak Hours Net Bill
Net Monthly Bill = 1,400 – (-2,898)
Net Monthly Bill = -1,498/-
It means that the WAPDA will have to pay you Rs. 1,498/- for that month!!!
Note: These calculations are purely based on the estimation of experts to let you know how net metering Pakistan works. The prices of off-peak hours and peak hours tariffs are based on the estimation and may vary over time. In some cases, it is not necessary that you will always receive your net monthly bill in a negative amount as it totally depends on your consumption. Sometimes, you will have to pay the amount to WAPDA if your electricity consumption is more than the energy produced by your solar system.
We got these calculations as we have seen a 4 kW solar system is producing more electricity than its capacity due to the best quality of solar panels. To get an accurate picture of your net metering Pakistan calculations, you must consult with an experienced professional by providing him with your energy needs and budget for solar energy. The location of your premises is also a crucial part that will decide the peak and off-peak hours rates.
Below is the original WAPDA bill for net metering from one of our client who is using 7 kW solar system;
Eligibility and Criteria for Net Metering Pakistan:
The eligibility and criteria for net metering Pakistan depend on different factors such as consumer category, solar PV range, voltage supply level, etc. Here is the table that defines the eligibility and criteria;
| Consumer Type | III Phase |
|---|---|
| Consumer Category | Commercial / Domestic / Industrial |
| Solar PV Range | 1 kW to 10 MW |
| Voltage Supply Level | 400 V to 11000 V |
How can I Apply for Net Metering Pakistan in 2025?
The net metering Pakistan facility is the real risible for solar consumers in Pakistan as they can export their surplus power back to the grid and earn handsome amounts. The National Electric Power Regulatory Authority (NEPRA) had legalized net metering in Pakistan in 2015 by issuing legal guidelines to apply for net metering Pakistan. If you want to apply for net metering, you will need to follow the below instructions to avail net metering facility accordingly;
Installation of a PV Solar System
The solar system is the main ingredient in the application of net metering Pakistan. It is compulsory to install a PV solar systems either on-grid solar system or hybrid solar system, at your premises with the connection of a three-phase electric meter. Without installing a solar system, there won’t be anything to deal with. You will not be eligible to generate solar power and export it to the main grid (WAPDA). So, the first thing first, you have to install a PV solar system according to your energy needs on your rooftop. After installation, the process of application will take place as per the defined rules of SRO 892 (1) 2015.
Contact with a Solar Company Registered with the AEDB
If you have a PV solar system on your rooftop already, you will have to contact with local AEDB-registered company in your area. Now a question can be raised in your mind why users cannot apply by themselves? The reason is that NEPRA does not accept the applications directly from the users till now. Therefore, you will have to apply through a local solar company. It is expected that NEPRA will start receiving individual applications soon.
Application Preparation & Documentation
After agreeing with the AEDB, your application process will be started. You will have to attach relevant documents with the application such as a copy last electricity bill, national identity card (NIC), and other required documents by NEPRA as per rules of SRO 892 (1) 2015.
Energy Department Inspection & NOC Issuance
If your application got approved with the attached documents, the officials from the WAPDA along with representatives of AEDB will make a visit to your premises where you have installed solar system for inspection purposes. If inspection got passed as per their defined SOPs, this will lead to an issuance of No Objection Certificate (NOC) by energy department as per rule SRO 892 (1) / 2015.
Agreement Signing
After receiving NOC, you will make an agreement for three years with the local electric supply company like LESCO in Lahore region. This will be considered as legal agreement in which you will export your surplus solar energy to the electric grid of that company.
Verification for License
Then LESCO (or any local electric supply company) will send this signed agreement to NEPRA for further verification and approval of the license. After verification, NEPRA will issue a legal license to your name which will not only be a piece of paper but a certificate that you will contribute your surplus solar energy to the national grid for the next three years. After three years, you may apply for the license renewal accordingly by contacting with AEDB representatives.
Turning on Net Metering
After getting the license, a net meter will be installed by electric supply company at your premises. This net meter will display the electricity that you import and export to the electric grid from your solar system. After completion of all processes, net metering will be installed within 60 days from the date of final approval.
Net Metering Pakistan as a Technology:
Pakistani solar customers can now easily consume and export solar energy to the national electric grid by using net metering technology. This technology helps solar consumers and distribution companies (DISCO) to play a vital role in the greener environment. In Pakistan, the net metering technology is governed by the regulations of the National Electric Power Regulatory Authority (NEPRA) 2015.
NEPRA is the governing body to execute and implement the terms and conditions for those who wants to embrace this cutting-edge technology to overcome their energy expenses. If you want to integrate the net metering with your solar system, you must meet the following criteria;
Surplus energy from solar system is sent back to the electric grid by which consumer then gets credits or compensation against the exported units.
Important Note: LESCO has announced that unit credits will not be carried forward to the next year if it is not consumed till December. So, if you are in Lahore region and using net metering, it is best for you to use your outstanding credits before December.
Benefits of Net Metering Pakistan:
Well, there are many benefits of net metering Pakistan that provide peace of mind to solar consumers but we will discuss the most valuable benefits here one by one;
Decrease Electricity Bill
The major benefit of net metering Pakistan is that it overcomes the burden of electricity expenses. The technology of net metering has the potential to reduce your electricity bills to zero as you can not only generate electricity of your own but can also export to the grid to generate passive income. We know a shopkeeper who has installed a 4 kW solar system in his shop, has reduced his electricity bill to zero in just 6 months of time period.
Get Rid of Expensive Batteries for Storage
You may need heavy investment to buy solar batteries as they are quite expensive and has shorter lifespan as well. If your solar system is not storing extra electricity in batteries, the excess electricity will be wasted. So, that’s why net metering utilize your surplus solar energy and provides you financial benefit in return
Motivate Customers to Switch to Renewable Energy
Many people are embracing solar energy after knowing the net metering features and benefits. One day, they will be thankful to us for using the renewable solar energy for brighter and sustainable environment.
Overcome Grid Pressure
Due to limited energy resources in Pakistan, you can contribute to the national electric grid by exporting your surplus solar energy. The electric grid then supplies this electricity to others. Just imagine, how many homes can be lit up by your small contribution!
Sustainable Environment
Net metering can reduce the reliance on fossil fuels, which impacts on air pollution and climate change. Renewable energy ensures the environment neat, clean and hygienic by reducing power plants operations.
Add Values to Your Home
Net metering Pakistan can gradually increase the value of your home because homes equipped with solar system suppose to have higher resale value. This facility is considered as a valuable asset for any home in Pakistan.
Conclusion:
The net metering is a great opportunity for solar energy consumers to sell their extra produced solar energy to the grid. It can not only reduce their electricity bills but also reduce the recovery time of initial investment on solar system. This technology can make solar consumer to get return on investment (ROI) in no time. This facility is also beneficial for night solar panels to overcome the burden on electric grid.
However, it may take up to 60 days to install the net metering after getting final approval from the governing body. If your solar panels are efficient enough to generate more electricity than consumer, you must get benefit from the net metering in Pakistan!