Net metering is the single most important policy mechanism that makes rooftop solar economically viable in Pakistan. It allows you to export surplus electricity generated by your solar panels back to the grid, effectively running your meter backward and earning credits against your electricity bill. Understanding how it works — and how to navigate the application process — is essential before investing in a solar system.
What Is Net Metering?
Net metering is a billing arrangement between you and your local electricity distribution company (DISCO). When your solar panels generate more electricity than you are consuming — which happens frequently during peak sunlight hours — the excess power flows back into the grid. Your bidirectional meter records both the electricity you consume from the grid and the electricity you export to it.
At the end of each billing cycle, you are only charged for the net difference. If you exported 500 units and consumed 700 units from the grid, you pay for 200 units. If you export more than you consume, the surplus carries forward as a credit. In Pakistan, NEPRA (National Electric Power Regulatory Authority) regulates the net metering framework under the NEPRA (Net Metering) Regulations, originally introduced in 2015 and updated in subsequent years.
The buy-back rate — what you are paid for exported units — varies by DISCO and is typically set at a percentage of the applicable retail tariff. Currently, most DISCOs credit exported units at the same rate as the lowest applicable tariff slab, though this can vary.
The Application Process: Step by Step
The net metering application process in Pakistan involves multiple steps and can take anywhere from 4 to 12 weeks depending on your DISCO. Here is what the process looks like:
Step 1: System installation. Your solar system must be installed and operational before you can apply for net metering. The system must meet NEPRA technical standards, including proper protection relays, anti-islanding features, and appropriate inverter specifications.
Step 2: Application to your DISCO. Submit a net metering application to your local distribution company. This requires your CNIC copy, property ownership documents, latest electricity bill, single-line diagram of your solar system, equipment specifications (panel and inverter datasheets), and the installer’s registration details.
Step 3: Technical feasibility study. The DISCO conducts a technical assessment to verify that your system meets safety standards and that the local grid infrastructure can accommodate your export capacity. This typically takes 2–4 weeks.
Step 4: Generation license from NEPRA. For systems above 1 MW, a generation license is required from NEPRA. For residential and small commercial systems (under 1 MW), a simplified notification process applies. Your DISCO handles the coordination with NEPRA.
Step 5: Bidirectional meter installation. Once approved, the DISCO replaces your existing meter with a bidirectional (import/export) meter. You may need to pay for the meter and installation, which typically costs PKR 10,000–25,000.
Step 6: Connection agreement. You sign a net metering connection agreement with your DISCO. This formalizes the billing arrangement and defines the terms under which you will export and import electricity.
Step 7: Commissioning. A DISCO representative inspects your installation, verifies the meter readings, and formally commissions the net metering arrangement. From this point, your meter tracks both import and export.
Which DISCOs Support Net Metering?
All major distribution companies in Pakistan support net metering under NEPRA regulations. However, the efficiency of the application process and turnaround time varies significantly between them:
• K-Electric (Karachi) — Generally efficient process, well-established procedures for residential and commercial systems.
• LESCO (Lahore) — One of the most active DISCOs for net metering, with a relatively streamlined application process.
• IESCO (Islamabad/Rawalpindi) — Good support for net metering, moderate processing times.
• FESCO (Faisalabad) — Active net metering program, though processing can be slower than LESCO.
• MEPCO (Multan) — Supports net metering, processing times vary by region.
• PESCO (Peshawar) — Net metering available but infrastructure challenges can cause delays.
• HESCO (Hyderabad) — Supports net metering, though fewer installations compared to other regions.
Common Mistakes to Avoid
Oversizing your system without understanding export limits. Some DISCOs have caps on how much you can export. Designing a system that far exceeds your consumption without checking these limits can result in wasted generation.
Choosing a non-AEDB-registered installer. The Alternative Energy Development Board (AEDB) maintains a registry of approved solar installers. Using a non-registered installer can complicate your net metering application and may void certain protections.
Incomplete documentation. Missing or incorrect documents are the most common cause of application delays. Ensure your single-line diagram, equipment specs, and property documents are all in order before submitting.
Ignoring the bidirectional meter requirement. Your existing meter cannot track exports. Until the DISCO installs a bidirectional meter, you are effectively giving away any surplus generation for free.
Not monitoring after installation. Once net metering is active, you should verify that your bills accurately reflect your exports. Billing errors are not uncommon, and catching them early saves money and frustration.
We Handle the Entire Process
The net metering application process is manageable but bureaucratic. It involves coordination between your installer, your DISCO, and sometimes NEPRA — and delays at any step push back your timeline for actually benefiting from exported electricity.
Solar Citizen manages the entire net metering process on behalf of our clients, from initial documentation and DISCO application through to meter installation and commissioning. Our team is familiar with the specific procedures and contacts at each major DISCO, which significantly reduces processing time. If you are planning a solar installation and want net metering handled properly from the start, get in touch with our team.