Net metering (green meter installation) is a remarkable scheme started by NEPRA in 2015 that allows homeowners and businesses to simply export excess electricity to the national grid while earning credits. When a solar system creates more electricity than is consumed, the excess energy is sent to the national grid.
NEPRA has developed a complete application process for net metering in Pakistan. Let’s go through each phase of the net metering application procedure in Pakistan one by one.
If you intend to use net metering on your solar system, you should first speak with a reliable solar supplier or firm near you. The company will handle the net metering application process seamlessly. Check out the following things you need to perform before starting net metering:
Solar System Installation
You must build a solar PV system at your home before you can apply for a net metering system in Pakistan. The solar system needs to have a three-phase meter connection and be either hybrid or on-grid. After all, there wouldn’t be a method to export energy to the national grid without a solar PV system. Therefore, you need to install solar panels on your roof in order to take advantage of Pakistan’s net metering law.
Connect With an AEDB Registered Solar Company
If you currently own a solar system, your first course of action should be to contact a nearby AEDB-registered solar provider. One may wonder why it’s not possible to apply for net metering on your own. The NEPRA prohibits individual applications for net metering, which is the reason. Instead, you must collaborate with a solar company that has been authorized to oversee the net metering application process. Give the solar company the green light to submit the Pakistani net metering application after speaking with them.
Preparation of Application
The process of applying for net metering begins as soon as you contact an AEDB-registered solar provider, such as Alpha Solar. At this point, among other crucial documents, the company will request to view your National ID card and electricity bill. They will forward it to the relevant department and provide comprehensive support throughout the entire application process.
Inspection and NOC Issuance
As soon as the application is accepted. The next stage is for the Punjab Energy Department to inspect and issue a No Objection Certificate (NOC) in compliance with SRO 892 (1) / 2015 after conducting an inspection. This phase ensures that all guidelines and requirements are respected and adhered to.
Signing of Agreement
A contract is signed by the customer and the local electricity provider, such LESCO, when a No Objection Certificate is issued. You are allowed to export any extra electricity produced by your solar panels to the national grid for the duration of the three-year agreement.
Allotment of Generation License
The agreement is sent to the National Electric Power Regulatory Authority (NEPRA) for certification after it is signed. This crucial step grants you the official generation license and ensures compliance with the law. For a period of three years, this license enables you to conduct business as an independent electricity producer. You are authorized by law to use this license to generate solar electricity and contribute to the country’s energy grid.
Activation of Net Metering
Your net metering services will begin as soon as the generation license is successfully obtained. A net meter will be installed in your home, and by selling electricity to the grid, you will be able to make financial savings.
Reputed Solar Resources to support
You can get help with anything from “solar system installation” to “NOC issuance” and “net metering activation” from a reliable local solar firm, which will relieve you of the burden of having to finish every step. Just get in touch with that company, and their experts will take care of your net metering system with skill and efficiency.
How Net Metering in Pakistan Works?
Energy credits obtained during the sunny summer months can be credited to consumer energy expenditures during the colder winter months, as most net metering plans enable kWh credits to roll over from month to month.
While some utilities allow these credits to continue indefinitely, most reconcile any remaining credits at the end of the year and provide the customer a rate that is almost wholesale in exchange.
The “true-up date”—which is frequently determined—is the day that a customer’s solar panels were given permission to operate (PTO) and linked to the grid.
Certain utilities allow solar users to select the day for their annual true-up, while others set a single day for all customers to complete the task.
In order to provide solar owners the best chance to use up any banked credits from the previous year before the new sunny season, this date is usually in late spring.
Monthly reconciliations of net metering credits also take place in certain places. Any unused energy credits are paid to the solar system owner at the end of each billing cycle, usually at a heavily discounted rate that is equivalent to the wholesale price of electricity.
As a result, homeowners in these places may choose to install a solar power system that will prevent them from using more energy than they require during the summer, reducing the financial benefits of net metering.
Value of Net Metering Credits
Under true net metering, each kWh credit is worth one kWh, and it can be traded in at any time for grid power.
Certain net metering plans, on the other hand, provide a cash bill credit. The credit may be less in certain cases or precisely equal to the retail value of a kWh in others.
Time of Use Rates
Certain utilities offer time-of-use (TOU) pricing plans; under these plans, the cost of energy fluctuates according on when it is used.
The majority of people use their appliances after they get home from work on weekday evenings, which is typically when the grid sees its highest demand. These are the times when energy costs go up.
In TOU rate schemes, there are at least two different fees for on-peak and off-peak times. When solar panel owners pay time-of-use (TOU) tariffs, the electricity generated on their panels is credited to them and delivered to the grid.
Consider a scenario in which a solar system generates 10 kWh during off-peak hours and transfers it to the grid at a cost of 8 rupees per kWh. The owner will be credited eighty rupees for such energy.
If grid energy is valued at 12 rupees per kWh during those hours, then the credit they received might only offset about 6.7 kWh of peak-time electricity.
Given the erratic nature of energy prices, TOU rates may enhance the home solar battery’s financial return. Homeowners can use the stored energy in their battery to charge it with solar energy during the day to avoid paying peak energy rates in the evening.
Conclusion
The adoption of renewable energy is accelerated by net metering, which gives customers the ability to fully utilize solar energy while saving a significant amount of money. Customers can process the net metering application with ease, guaranteeing compliance and efficiency at every turn, by adhering to the specified application process and making use of the knowledge of reliable solar providers.
Furthermore, by being aware of the nuances of net metering schemes, customers may maximize their financial gains, optimize their energy use, and help ensure a sustainable energy future.
FAQ
What is Net Metering?
Owners of solar energy systems can export their excess electricity to the grid through a billing process called net metering. This aids in their electricity cost offset.
Who is Eligible for Net Metering in Pakistan?
Net metering is available to Pakistani citizens who have built solar PV systems, complied with regulations, and are connected to the national grid via a solar supplier registered with the AEDB.
What Documents are Required for the Net Metering Application Process?
The electricity bill, the National ID card, and any other pertinent certifications and permissions pertaining to the installation of the solar energy system are essential papers.
How Does Net Metering Benefit Consumers?
Net metering allows consumers to lower their power bills by selling surplus solar energy to the grid, earn credits for excess generation, and contribute to a more sustainable energy future.
What Variations Exist in Net Metering Programs?
Depending on local legislation and utility policies, net metering programs may have different credit rollover procedures, credit value, and time-of-use rates.
How can you Apply for Net Metering in Pakistan?
In Pakistan, individuals are unable to apply directly for net metering. To take use of the net metering features, you must get in touch with a solar company that is registered with the AEDB. The consumer will be represented by the solar provider in preparing the application and obtaining permission from NEPRA and the Punjab Energy Department.
Will a client get paid by the Distribution Company in PKR for his export of excess power to the grid?
If you sell excess power to the grid, the distribution business will not pay you in Pakistani Rupees. Their only means of payment will be changes to your electricity bills, which will be contingent upon their predetermined terms, conditions, and prices.
