Net Metering in Pakistan

When we hear the word net metering, many questions pop into our mind, like what is net metering? Or how does net metering works? So in this article, all the basic queries of the users of renewable energy are discussed. In this way, we will help people so that they can reduce their electricity bills and get several more benefits.

Because net metering Pakistan is relatively new, people are widely uninformed of its convenience and other advantages. In countries like Pakistan, where abundant energy sources such as the sun are present, and people are trying to convert to these pocket-friendly sources, people should be aware of services like net metering in Pakistan to enjoy these facilities to their fullest

What is net metering?

Net metering is a contractual electricity policy for domestic and commercial users who generate their electricity using sustainable energy sources like solar energy systems and windmills and sell electricity units to the national grid.

This phenomenon allows them to supply surplus produce to the national grid during peak hours or during those times when the total electricity produced by the federal system is not enough to accommodate the consumer load.

How does net metering function?

Net metering Pakistan is an advanced yet legal procedure, and it is uniformly beneficial for residential and commercial users.

It is a billing mechanism that gives credit to the solar power system owners for the number of electricity units they add to the national distribution system.

Installation of a bi-directional electricity meter with a hybrid or on-grid solar panel is necessary for net metering. A three-phase electricity connection to these solar panels is vital to inject and balance the abundant energy to the grid.

The legitimacy of net metering

NEPRA (National Electric Power Regulatory Authority) arrogated the regulation of Generation, Transmission, and Distribution of the Electric Power Act – Act 1997 Section 7(1) on September 1st, 2015, certifying the rules and laws legalizes the NEPRA net metering program for renewable energy.

Eligibility criteria for net metering in Pakistan

Every user with the following requirements fulfilled is eligible for applying for a net metering contract.

Connection: 3 phase

Consumer groups: domestic, commercial, industrial

Supply voltage level: 400V – 11kV

Solar PV Scale: 1kV – 1000kV

How to apply for net metering?

The people who want the net metering contracts with DISCOS (Distribution companies) should note the following steps;

1: Application for net metering

Every consumer who satisfies the specific requirements mentioned in NEPRA’s ordinance may present their application with essentially required documents before an appropriate DISCO office like LESCO.

2: Acceptance of application

Then there will be the acknowledgment of the receipt by the DISCO, which will inform the applicant if the application is complete. The completion of this procedure is a must within five working days after the receiving of the application.

3: Initial review

After receiving your complete and proper application, DISCO will conduct a preliminary review of your system to judge if you are competent enough for inter-connection arrangement during the execution of the additional requirements. The process of preparatory examination will complete within 20 working days.

4: Agreement

After DISCOS finds out that the applicant is competent enough to be a DG, the two parties will sign a mutual contract. This procedure will take place within ten business days.

5: Provision of license

After signing the agreement between the two parties, NEPRA receives a copy of the application and arrangement of the license generation. The execution of this process must take place in no more than seven business days.

6: Connection charge estimate

Following the contract, if the applicant’s system needs some upgrade or enhancement, DISCO will facilitate a CCE (connection charge estimate) for the recommended inter-connection equipment, which involves installing a net meter.

Advantages of net metering

Net metering is an excellent system for people using solar panels to solve several problems like high-priced electricity and load shedding. It also helps the nearby consumers by adding energy to their setup during peak hours.

1: Authority over the bill

Net metering allows consumers who are generating their electricity to have command over their electricity bills.

2: Reduction in bills

Net metering is effective in lowering the cost of bills. So it is a budget-friendly mechanism.

3: Protection of the electric grid

Net metering adds electricity to the national grid system during peak hours, thus protecting the federal system by taking off the extra load and protecting it from collapsing.

Conclusion

It brings us to the conclusion of this article, in which we have explained all the preliminary inquiries related to net metering and its steps associated with it. Net metering is a preferable system for both DISCOS and applicants, which is helpful for both parties in one way or another.

Net metering Pakistan is a valuable phenomenon because of ample solar energy resources and difficulties in the constant supply of electricity. Therefore if you can, please install the net metering system so that you enjoy the benefits linked to it.