Complete Guide to Net Metering in Pakistan 2026
Net metering allows you to install solar panels, generate your own electricity, and sell excess power back to your electricity company. This comprehensive guide explains everything you need to know about net metering in Pakistan.
⚡ Key Benefit
With net metering, you can reduce your electricity bill to zero or even earn money by exporting surplus power to the grid.
What is Net Metering?
Net metering is a billing arrangement where:
- You install solar panels on your property
- A bidirectional meter tracks both import and export of electricity
- You use solar power during the day
- Excess power is exported to the grid
- At night, you import from the grid
- You only pay the NET difference
Net Metering Regulations in Pakistan
NEPRA's Net Metering Regulations 2015 (amended 2021) govern the framework:
- Eligible Sources: Solar, Wind, Micro-Hydro, Biogas
- Capacity Limit: 1 MW maximum (increased from 1 MW)
- Connection Type: Must be Grid-tied (not off-grid)
- Meter Type: Bidirectional smart meter
Step-by-Step Process
Step 1: Size Your System
Calculate your average monthly consumption and choose an appropriate system size:
| Monthly Usage | Recommended System | Estimated Cost |
|---|---|---|
| 200-300 units | 3 kW | PKR 4-5 Lakh |
| 400-500 units | 5 kW | PKR 6-8 Lakh |
| 600-800 units | 8 kW | PKR 10-12 Lakh |
| 1000+ units | 10+ kW | PKR 12-15+ Lakh |
Step 2: Choose a Certified Installer
Select an installer certified by AEDB (Alternative Energy Development Board). They will handle:
- Site survey and system design
- Equipment procurement
- Installation
- DISCO application process
Step 3: Submit Application to DISCO
Your installer submits these documents to your electricity company:
- Application Form (Form-I)
- Copy of CNIC
- Copy of Latest Electricity Bill
- Single Line Diagram
- Equipment Specifications
- AEDB Installer Certificate
Step 4: Technical Feasibility Study
The DISCO conducts a technical feasibility study (within 15 days) to ensure:
- Grid capacity at your location
- Transformer capacity
- Safety compliance
Step 5: Installation & Inspection
After approval:
- Install the solar system
- DISCO inspects the installation
- Bidirectional meter is installed
- System is commissioned
Step 6: Generation License
For systems above 100 kW, you need a generation license from NEPRA. For residential systems, this is usually not required.
Export Rates & Billing
The current structure for net metering:
- Import Rate: Your regular tariff rate
- Export Rate: Variable rate (currently ~PKR 19-22/kWh)
- Billing Period: Monthly adjustments
- Annual Settlement: Excess credits carry forward, settled annually
Financial Benefits
Return on Investment (ROI)
Typical payback period: 3-4 years with current tariffs
Example Calculation (5 kW System)
| Item | Value |
|---|---|
| System Cost | PKR 700,000 |
| Monthly Generation | 600-700 units |
| Monthly Savings | PKR 18,000-25,000 |
| Annual Savings | PKR 216,000-300,000 |
| Payback Period | 2.5-3.5 years |
Common Questions
What happens during load shedding?
Standard net metering systems shut off during load shedding for safety. You can add batteries for backup, but this increases cost significantly.
What maintenance is required?
Minimal maintenance: Clean panels monthly to remove dust, check connections annually.
What about cloudy days?
Solar panels work on cloudy days but at reduced efficiency (20-30% less). Pakistan's average solar irradiance is excellent.
DISCO-Specific Guidelines
Each DISCO has slightly different processes. Contact your provider:
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