Latest News about Net Metering in Pakistan
As usual, Pakistan finds itself trapped in extreme morass when it comes to its levels of Energy Policy. Net Metering in Pakistan has evolved as a saviour to combat soaring energy prices. The introduction of net metering in Pakistan indicates a step towards incentivizing solar roof-top installations, authorizing households, business progression and economic stability to generate their electric power using solar systems and sell excess electricity generated back to the grid. Currently, the Net Metering rates in Pakistan is settled at PKR 19.32 per kilowatt hour (kWh).
What is Net Metering?
Net metering is the first policy mechanism for establishing Renewable energy for power generation. Net metering apprehends an electricity policy for consumers who plan to setup a Renewable Energy facility in their homes to facilitate themselves.
By producing energy using wind or solar for their own usage and supply the excess produced electricity to the national grid setting-off units of electricity consumed at night or off peak hours when the solar panels are no longer generating electricity.
So, basically, Net Metering is a billing mechanism where any solar energy consumer may sell off the non-utilized electricity to power generating companies like K-Electric, IESCO, HESCO, MEPCO, GEPCO, FESCO at a lower rate. This initiative has flourished an advantage of reduced electricity bills when inflation in Pakistan has already taken a toll over all the socio-economic classes. Unless, Pakistan has a new technology of night solar panels introduced, this one billing strategy is by fat the best.
Net Metering Price in Pakistan
The Net metering is a win-win billing strategy where both the consumer and the electricity supply company benefits. The consumer sells the excess electricity produced by solar panels installed at a rate of 19.32 PKR/kwh. The Solar Panel installation is a one time cost and you may check the solar plates rates according to your requirements. The Solar Net Metering Price in Pakistan is also a one time cost, thoroughly explained below.
| Capacity kW | Application Fee | Security Deposit | Connection Charges |
|---|---|---|---|
| Up to 10 | Rs. 5000 | 5,000 per kW | Rs. 20,000 |
| 11 – 20 kw | Rs. 10000 | 10,000 per kW | Rs. 40,000 |
| 21 – 50 kw | Rs. 20000 | 15,000 per kW | Rs. 80,000 |
| 51- 100 kw | Rs. 30000 | 20,000 per kW | Rs. 150,000 |
Principles of Net Metering
A customer should always get the maximum retail price value for behind the meter choices that reduce grid-supplied energy consumption.
Solar rate design and compensation mechanisms should help the customers in investing good amounts in solar system that are sustainable.
Net metering mechanism aims to provide just compensation to consumers as a result of large investments in an intention to produce energy for their own use.
How net metering works?
How to apply for Net Metering in Pakistan?
Net metering is a tremendous initiative implemented by NEPRA in 2015, allowing individuals to successfully fight with Pakistan’s crisis of load shedding and to effortlessly export any surplus electricity they produce to the national grid. NEPRA has introduced an incredible outline of the process for applying net metering in Pakistan. The net metering procedure in Pakistan is as follows;
Requirements for Net Metering in Pakistan
| Connection Type | 3 Phase |
| Type of Consumer | Residential, Commerciai, Industrial |
| Solar PV Range | 1 KiloWatt to 10 MegaWatt |
| Voltage Supply | 400 Volts – 11 KV |
Installation of Solar System
The first and foremost step is to install a solar system on your property. The system must be either on-grid or hybrid solar system with essential three-phase meter connection. After all, without a solar PV system, there will be nothing to generate to the national grid and get free bills. To produce electricity this installation is the most essential step.
Connect With an AEDB Registered Solar Company
For facilitating a hassle-free process, contact an AEDB registered solar company in your area. You might wonder why cant you apply net metering on your own without contacting to professionals. The reason met the demands of NEPRA policy as NEPRA does not allow individuals to do it on their own will.
Preparation of Application
After you get in contact with AEDB registered solar company, the process of your net metering application initiates. At this period the company will request you for your important documents including your ID card and electricity bills. They will aware you with detailed guidance throughout each step of application and forward it to the relevant department.
Inspection and NOC Issuance
After the approval of this application. It reaches into the next process where Punjab Energy Department proceeds with the inspection and issuance of the No Objection Certificate (NOC). This step follows the professionalism of maintained standards and regulations.
Signing of Agreement
After issuance of NOC, the agreement contract is signed between the consumer and the LESCO ( the local electricity provider). Signing the agreement for the purpose of permitting export energy to the national grid.
Allotment of Generation License
The signed agreement then submitted to NEPRA for assurance and verification, which allows you the generation license and now you can export energy legally.
Activation of Net Metering
Finally, the step came where you will succeed in this procedure. After getting a license, your net metering services will be activated, blessing you with a chance to save money and also earning a handsome amount from your solar system.
Pros & Cons of Net Metering
Latest News about Net Metering in Pakistan
The Federal Minister of Energy Awais Ahmad Khan Leghari stated at a conference in which he was in the opinion of no intentions to end the net metering system in Pakistan.
The minister underlined in the press conference at Lahore Electric Supply Company (Lesco) headquarters, that the policy was introduced by PML-N Leader Nawaz Sharif during his last tenure as a Prime Minister.
According to the minister, this policy is close to the heart of Shahbaz Sharif and will continue encouraging this extensive policy in an action.
Hence the Government declared its support for solar power and its policies, relatively.
FAQ’s
To Wrap Up
A basic initiation of net metering Pakistan that will help the audience to develop a framework of this concept. Net metering, which is the top most opportunity for people who are exhausted of high budget bills, one time investment will save you from lifetime tension.
