Net metering in Pakistan is a billing strategy for homes and business solar power systems. In the net metering billing system, you are paid for the “net” amount of power you actually consume. In other words, you will get a credit on your account for the extra power your system produces.
You will get a credit on your account if your solar panels generate more power than you use in a particular month.
Suppose your system fails to generate enough power to satisfy your demands in the future (for example, at night or during bad weather). In that case, you can utilize this credit to reduce any following payments.
Some Important Things About Net Metering
You should have some important knowledge about net metering in Pakistan.
- Only rooftop solar PV installations are right now eligible for net metering.
- For net-metered systems, the upper capacity limit is 50kW.
- Only excess power produced during the day can be exported to the grid; the user must use any extra electricity produced at night.
- Only some big cities are offering net metering, like Karachi, Lahore, and Islamabad.
How Does Net Metering Work In Pakistan?
In Pakistan, net metering is available for solar PV projects that are grid-connected and off-grid. In order to benefit from net metering for grid-tied systems, your solar PV system has to be linked to the primary utility grid. Your meter will keep track of both the power your system generates and the electricity you use from the grid. At the end of each billing cycle, you will only be charged for the “net” amount of electricity utilized.
Suppose that during the same month that you used 1,000 kWh of power, your solar PV system generated 800 kWh. It indicates that you would have used 200 kWh of the grid’s energy (200 kWh = 200 kWh x 1,000 kWh). Consequently, you would only be charged for the 200 kWh that you really utilized from the grid.
If your system generated 1,200 kWh that month as opposed to 800 kWh (1,200 kWh – 1,000 kWh = 200 kWh), you really “exported” 200 kWh back to the grid.
You would receive a credit on your account for the 200 kWh that your system exported back to the grid in this case if your system doesn’t generate enough power to meet your demands in the future. You can utilize this credit to reduce any fees that could apply.
Off-grid solar PV systems without a connection to the main utility grid are nonetheless eligible for net metering.. However, rather than receiving a monthly credit on your electricity bill. If your system produces extra power, NTDC (National Transmission & Dispatch Company) will provide you with a yearly payout.
What is the Net Metering Tariff in Pakistan?
The net metering price or tariff rate, which controls the exchange of power between users and the National Electric Power Regulatory Authority (NEPRA), is now set at Rs. 19.32 per kilowatt-hour (kWh).
The difference between off-peak and peak tariffs must be understood in the context of net metering. Off-peak rates are cheaper electricity prices that are in effect during specified times. When there is a relative decrease in power consumption, usually in the late evening or early morning, peak rates are higher prices for electricity paid during times of high demand, often between the hours of 5 and 10 p.m.
At off-peak pricing, the NEPRA purchases power with justification. When compared to our daily usage, which occurs mostly between the hours of 5 and 10 p.m., solar power plants only provide electricity at off-peak times. It should be noted that peak times might change depending on the season.
An example would be useful.
For example, a home with a 6kW solar system in Pakistan produces 600 kWh of power per month. They export the remaining 400 to the grid and only use 200 of the 600 available. Off-peak power pricing would apply as this is produced and used during non-peak times.
Additionally, when the sun has not yet fully risen in the morning, you import power from WAPDA at the same time.
- Electricity generated = 600 units
- Electricity sent to the grid = 400 units
- The electricity imported from the grid: 80 units
- Net Price: electricity imported from the grid – electricity sent to the grid
- Net Off-Peak Hours Bill: 80 x 19.32 – 400 x 19.32 = 1545 – 7,728 = Rs. -6,128
It is the off-peak bill.
Since solar panels no longer produce power at night, all of the electricity used at home comes from the grid (WPADA). Additionally, it is sold during peak times at a premium price. Let’s say you use 200 units at a cost of Rs. 25 per kWh.
- Energy sent to the grid = 0 units
- Energy consumed = 200 units
- Net Peak Hours Bill: 200 x 25 = Rs. 5,000
- Total Monthly Bill: Peak Net Price – Off-Peak Net Price
- So, the total monthly bill will be 5,000 – 6,128 = Rs. -1,126.
It means that the grid would pay you -1,126 for that month.
Note: The pricing and power use shown here may need to be more accurate; they are merely provided to help you comprehend how the net metering method functions.
How To Apply For Net Metering In Pakistan?
Every in Pakistan who uses power and complies with NEPRA’s norms and regulations is eligible to apply for a net metering facility. Follow these instructions to send an application form to DISCO.
- Send the application and the necessary documents to the DISCO office, where it will be reviewed and acknowledged for processing by the staff.
- The DISCO staff may request further information from you within 7 working days if your application is incomplete or there are missing papers.
- Once the documentation procedure is complete, DISCO will examine it and perform a preliminary evaluation to see whether you qualify for interconnection needs.
- The application will be completed after this initial evaluation, which should take about 20 working days.
- DISCO can refuse your application if it doesn’t meet the NEPRA rules.
Creation of Licenses and Agreements.
The agreement must be signed between the applicant and DSICO within 10 working days of the application being approved. The licence application and a duplicate of this agreement are submitted to the NEPRA.
If, after receiving the license, DISCO determines that a network upgrade or alteration is necessary, it offers a Connection Charge Estimate (CCE) for the suggested connection amenity. No CCE will be given following the agreement if no adjustment is necessary.
Documents For Net Metering Application
- Copy of the latest paid electricity bill
- Attested copy of Computerized National Identity Card
- NOC by the power inspector
- Single Line Diagram to represent a 3-phase connection
- Technical detail of the inverter