Net Metering
In Pakistan, we are facing two issues currently in the power sector i.e. high prices and electricity shortage. We are facing severe load-shedding which becomes even worse in summers. During peak hours in summer, there is load-shedding after every hour.
Net metering or Green Meter is the best remedy for these issues. When we receive bills we get shocked about the amount of our bill as compared to power supply and consumption. Govt is charging higher unit rates and also include taxes and duties in bills to overcome the shortage of money.
In recent days a great development occurred in the power sector with solar systems. Now, awareness is coming about solar systems in Pakistan. Our people are shifting their load to solar systems. They are installing higher-capacity solar systems than their demand.
They sell the extra amount of electricity to the national grid. It not only reduces their monthly bills but in some cases, they are even paid by govt. This is called Net Metering or Green Meter.
Now, you can check your duplicate LESCO bill online for free just visit lescoebill.pk
How does it work?
When a consumer wants to install a Green Meter, he has to give an application to the related Disco. After inspection, a demand notice is issued to the consumer. When he pays his demand notice, a three-phase green meter is installed at his premises.
If you are facing unscheduled electricity load-shedding you can complain by calling the emergency number, to know more details about it, visit our page WAPDA Emergency Helpline
To know its working we can explain it in simple words:
“ A consumer has installed a solar system of 5kv or 10kv and it produces 500 units per month. But the consumer consumes only 200 units monthly, the extra 300 units he will sell to the national grid. It will be deducted from his final bill.”
If a consumer consumes more units than his system is producing, they will be added to his bill. When his system produces more units than his consumption, they will be deducted from his final bill. This is called net metering.
How to Apply for Net Metering?
We will discuss in detail the process of applying for a green meter or net metering in Pakistan.
Active Connection
First of all, the consumer must have an active electricity connection to the relevant DISCO. He should have a billing history.
Solar System Installation
Solar systems should be installed before applying for net metering. The system should have more capacity than consumers’ usage. For example, if a consumer consumes 300 units in a month, the capacity of the system should be more than 300 units.
Preparation of Application
After the installation of the solar system, the next step is to prepare an application as per the rules of SRO 892(1) 2015. For assistance in this process, you may contact any AEDB-registered solar company.
They will guide you and can apply for net metering on your behalf. They will give you assistance and guide you through all the required documents and steps.
Inspection and NOC Issuance
After you submit your application to the Punjab Energy Department, they will inspect your premises and get all the required information. When they are satisfied with all the requirements, they will issue a No Objection Certificate ( NOC ) in line with SRO 892(1) 2015.
This means that all the required regulations and standards are followed and maintained accordingly.
Signing of Agreement
When NOC is issued an agreement will be made between the producer and the local DISCO like LESCO for three years. This means that, now you can sell your produced electricity to the DISCO in the National Grid.
Allotment of Generation Licence
After signing an agreement with LESCO, your application will be forwarded to the National Electric Power Regulatory Authority ( NEPRA ) for verification. After verification of all requirements, NEPRA will give you a Generation Licence.
This licence will recognise you as an Independent Power Producer and will grant you permission to produce and sell electricity to National Grid for the next 3 years.
Activation of Net Metering
When you get your license as a power producer, your net metering service will be activated. For this, you will get a three-phase green meter installed at your premises. Now, you have the opportunity to sell electricity to save and earn money.
Net Metring Rates in Pakistan
Here we will discuss net metering rates in Pakistan in detail it is also called net metering tariff, but before you should know some terms used in billing.
Peak Hours
During these hours consumption of power is higher than normal hours. Normally the peak hours are 6 pm to 10 pm for summer. During these hours, the unit price is higher than normal hours.
Off-Peak Hours
The remaining 20 hours are called off-peak hours, during these hours the consumption is normally low. The unit price for these hours is lower than that of peak hours.
If you want to study in detail about peak and off-peak hours, you can visit our page lescoebill.pk
Tariffs for peak and off-peak hours are different. It is Rs 14 Per Unit for off-peak hours and Rs 24.33 for Peak hours.
Import Units
These are the units which we import from the national grid when our system is not producing enough power to fulfil our demands. Normally during night time and in peak hours our system produces low units as there is no sun and we take power from the backup system which is the battery.
When our batteries are exhausted our system imports power from the national grid to fulfil our demands and the meter runs forward. These are negative units for us and are excluded from exported units.
Export Units
During day time, when our system is working at full capacity, it produces more units than our demand. These extra units are transferred to the national grid and are called export units. This happens at day time when the system produces more power than our demands and extra units are supplied to the national grid.
During this time meter runs backwards and is called negative reading. These units are our plus points and we get payment for these from our DISCO.
How Reading Done?
There are 4 readings for a green or net meter in the net metering bill every month. We can easily understand them by their numbers because every reading has a specific number. These four numbers are 6,7,8 and 9.
The number 6 represents units imported during peak hours.
The number 7 represents the units exported during peak hours, normally these are zero because there is no sunlight at night time.
The number 8 represents the units imported during off-peak hours.
The number 9 represents the units exported during off-peak hours. Mostly we export electricity during off-peak hours.
DISCOs sell electricity at higher rates and purchase at lower rates, so the net bill is calculated based on net unit prices.
Net Billing / How Bill is Calculated
Bill is calculated differently for off-peak hours and peak hours and then the net bill or final bill is calculated.
Bill for Off-Peak Hours
During off-peak hours we export power to the grid and consume less. For this, reading will be differently taken and the bill is calculated by excluding import units from export units. We can explain it with the help of a diagram and table of units consumed and exported below.
For example, if we consume 50 units in off-peak hours and produce 300 units then the bill is calculated as under:
| Type | Units | Price Per Unit | Total Price |
| Import | 50 | 14 | 700 |
| Export | 300 | 14 | 4200 |
| Net | 50-300 | 14 | -3500 |
The negative sign shows that this amount is payable to the consumer and will be deducted from the peak-hour bill.
Bill for Peak Hours
During peak hours consumer consumes more energy than he produces and its bill is calculated as under.
For example, if a consumer consumes 100 units of electricity during peak hours and he did not export any units to the national grid then his bill will be calculated under
| Type | Units | Price Per Unit | Total Price |
| Import | 100 | 20 | 2000 |
| Export | 0 | 20 | 0 |
| Net | 100-0 | 20 | 2000 |
This means that the consumer has to pay this amount to his related DISCO.
Net Bill
The net bill will be calculated by excluding peak-hour bills from off-peak hour bills as
| Peak Hour Bill | Off-Peak Hour Bill | Net Bill |
| 2000 | -3500 | -1500 |
The negative sign shows that the customer has a charge of this amount to the electric company and it will adjusted in the next month’s bill.
But if there is a positive sign, it means the consumer has to pay this amount to the electric company.
Note: All the values which we used in the tables are supposed values to make understanding better.
Quarterly Arrangement
The whole year is divided into 4 quarters based on peak hour timings which change every 3 months. At the end of a quarter if you have a positive bill you have to pay this bill but if you have a negative bill then you can avail of any one option from below
- Adjust in the next quarter
- Cashout the mount
Normally people prefer 1st option because it is convenient and 2nd option has a lengthy procedure.
Benefits of Net Metering
Net metering offers many benefits to consumers and the power department, here we will discuss some of them.
Reduce Electricity Bills
Net metering allows consumers to sell electricity to the national grid. It will reduce their bills and make them able to have some savings.
Return on Investment
Installing a solar system consumes a lot of investment, by using net metering we can get a return on investment by selling extra units to the national grid. It will help us to make some savings and be able to replace the system when its physical life is over.
Energy Independence
When a consumer installs a solar system, it makes him independent from the national grid and he can enjoy electricity without any disturbance and load shedding free.
Creating Jobs
When demand for solar systems increases, it will increase the demand for installers, electricians and other labourers related to the installation process. This will also increase investment in the power sector and have a positive effect on the economy.
Environmental Sustainability
One of the most important advantages of net metering is its positive impact on the environment. It uses sunlight to produce electricity and decreases the usage of fossil fuels in the production of electricity. Which ultimately decreases air pollution and preserves the environment.
Grid Stability
When more people use solar systems and produce their electricity, it will decrease the demand for electricity from the national grid. When load decreases from the national grid it will increase its performance and stability and decrease line losses.
Conclusion
By using net metering we can sell our extra electricity to the national grid and can get relief in our power bills. It not only helps us decrease our bills but also helps decrease the solar system’s payback period.
It gives us an uninterrupted power supply and conserves our environment. But we have to follow a standard procedure to install net metering.
If still you have any issues or want to discuss something else regarding net metering feel free to contact us.