What is Net Metering?
Under the net metering system, customers who use solar panels to generate electricity can feed excess power into the power grid thus receiving credits that lower their electricity bills. The system provides electricity consumers with credits which they can use to lower their electricity costs. The solar panel energy system functions as a mutual power exchange system by transferring excess generated electricity to the grid while solar users can retrieve power from the grid using their accumulated credits.
This policy enables solar energy consumers to distribute their power usage throughout time which optimizes their cost reduction.
How Does Net Metering Work in Pakistan?
In 2015, NEPRA (National Electric Power Regulatory Authority) introduced regulations allowing solar system owners with a capacity between 1 kW and 1 MW to connect their systems to the national grid under the net metering policy.
Here’s how it works:
- Solar Installation: The installation process begins with placing a grid-tied solar power system that contains a bi-directional meter which tracks electricity consumption along with power distribution to the grid.
- Electricity Generation: Solar power systems feed excess generated electricity into the national power grid.
- Credit System: Your electricity provider tracks your power exports through a credit system which lowers your electricity bill.
- Monthly Adjustments: Your monthly bill receives adjustments through calculations of net electricity usage that subtracts the electricity you supply from the electricity you consume.
Your solar system will help decrease your electricity costs while possible situations may lead to zero billing when the solar power production matches your total electricity usage.
How to Apply for Net Metering in Pakistan?
Step 1: Get a Solar System Installed
Ensure you install a net metering-compliant solar system with an approved bi-directional meter.
Step 2: Apply Through Your Electricity Provider
Submit a net metering application to your electricity provider (e.g., LESCO, KE, MEPCO, FESCO, etc.).
Step 3: Inspection & Approval
The distribution company will inspect your system to ensure it meets the required standards.
Step 4: Net Meter Installation
Once approved, a bi-directional meter is installed to track the energy exchange between your home and the grid.
Step 5: Start Saving!
After installation, you’ll begin earning credits for the extra energy you generate, reducing your electricity bills.
Challenges & Future of Net Metering in Pakistan
The beneficial opportunity of net metering for solar users comes with several important points to keep in mind:
- Policy Changes: Net metering policies face potential changes from the government through their consideration of gross metering which may impact the financial benefits. Regularly consult NEPRA policies to obtain the information needed for making informed decisions.
- Approval Delays: Registered solar providers help consumers overcome application and approval delays which sometimes occur.
- Initial Investment: The initial expense for solar panel installation requires an initial financial commitment yet future financial benefits justify this initial investment.
The Future of Net Metering
The demand for solar energy continues to rise in Pakistan despite existing obstacles. The adoption of solar energy depends heavily on net metering since electricity prices continue to rise and renewable energy takes center stage. Your solar investment benefits from following policy changes and understanding the system’s operation principles.