Understanding Net Metering in Pakistan – A Complete Guide
Electricity, just like water and air, has become an indispensable part of our daily lives. Whether you’re constructing a new home or starting a business, obtaining a new meter connection is often a necessity.
What is Net Metering?
Overview of Net Metering in Pakistan
Net metering is a payment system in Pakistan that allows solar energy producers to receive credit for the excess electricity they feed into the grid. For example, if a solar system generates more electricity than a household consumes, the electric meter runs backward, providing credits for nighttime or other periods when the energy usage exceeds what the system produces.
How Net Metering Works
Consumers are billed only for the “net” electricity they consume. The advanced electric meter used in this system operates in two modes to account for both power inflow and outflow in the consumer’s home. Net metering promotes energy efficiency and encourages the generation of cleaner electricity. The current rates for net metering in Pakistan are approximately Rs. 18.64 per kWh for residential consumers, Rs. 22.2 per kWh, and Rs. 11.3 per kWh for commercial consumers in compliance with Pakistani regulations that adhere to WAPDA standards and unit prices.
Net Metering Technology
Implementation of Net Metering
Net metering technology involves the use of bidirectional electricity meters, which can be integrated with hybrid solar panels or connected to the grid for net metering. These solar panels must be connected to a three-phase power supply to inject excess energy into the national grid and receive credit for the surplus electricity sold to the grid.
Steps of Net Metering in Pakistan
- Solar System Installation: The first step is to install the net metering system on the solar installation.
- Application Preparation: Prepare a demand application in accordance with the provisions of SRO 892 (1) 2015, with guidance on the planning process for the solar net metering system demand.
- Application Approval: The application is subject to approval by the Department of Energy and a thorough inspection of the system by an electronic inspection team.
- Contract Signing: Sign a 3-year contract between the power distributor (consumer) and the relevant authority to supply excess electricity to the national grid.
- Generation License Allocation: The contract is submitted to NEPRA for a generation license, enabling independent power generation for three years.
- Net Meter Activation: Once the approval process is complete, the net meter is activated, allowing recording and accounting of electricity production and consumption.
Benefits of Net Metering in Pakistan
- Self-Electricity Generation and Payment Control: Net metering allows users to generate electricity and manage payment processes.
- Cost Savings: Users can save money by utilizing solar panels for their electricity needs and income generation.
- Easy on the Wallet: Net metering provides a simple and cost-effective way to reduce electricity bills.
- Reduced Grid Load: Net metering helps reduce the load on the central distribution system and minimizes energy loss during long-distance transmission.
Cost of Net Metering in Pakistan
The cost of net metering in Pakistan varies depending on the system’s type and size. Costs for commercial consumers are generally higher than for residential users due to differences in project size. The net metering tariff for residential consumers depends on the size of the project and the associated costs.
Why Choose Premier Energy?
Premier Energy is a reputable provider that offers support in the net metering application process and provides solar solutions in Pakistan. The company is approved by the Energy Development Board (AEDB) and has completed numerous net metering installations across Pakistan.
Selecting the Best Solar System for Your Home
The choice of the best solar system for a Pakistani home depends on the user’s energy consumption and requirements. Solar power systems come in various capacities, and the ideal capacity is determined by the household’s electrical needs.
Net metering is a valuable system that allows consumers to generate clean electricity, save costs, and even earn money by selling excess energy to the grid. Understanding the process and benefits of net metering in Pakistan can help individuals and businesses make informed decisions to harness the power of solar energy.