اردو میں پڑھیں: نیٹ بلنگ گائیڈ | By Asif Niaz Meo, Managing Director, SNM Solutions | Last reviewed: September 2026
Short answer: DG Capacity is the approved size of your solar system, and it is printed on your electricity bill. Under the NEPRA Prosumer Regulations 2026 it cannot exceed the sanctioned load shown on that same bill. If you want a bigger system, the sanctioned load has to be increased first.
Two further checks decide whether your application is accepted at all: your street transformer must not already be 80% full of solar, and systems of 250 kW and above need a load flow study. Systems of 25 kW and below no longer need NEPRA approval — LESCO approves them directly.
If you have looked at your LESCO bill and wondered what the line marked DG Capacity means, this page answers it. It is not a charge and it is not your load. The capacity charges inside your tariff are a different thing altogether — see IPP capacity payments in Pakistan. It is the generation capacity LESCO has approved for you, and it is the single number that decides how big a solar system you are allowed to connect.
Almost every rejected application we see in Lahore fails on one of two numbers: the customer’s sanctioned load, or how much solar is already connected to their street transformer. Both can be checked before you spend a rupee, and both are written into the regulations rather than left to an officer’s discretion.
Already have net metering? Do not enhance your DG capacity.
If your connection was approved before 9 February 2026 you are grandfathered on the old export rate of roughly Rs 26 to 27 per unit. Enhancing your DG capacity, increasing your sanctioned load, or transferring the connection into another name moves the whole connection onto net billing at roughly Rs 11. Full detail here: how enhancing capacity costs you the old rate.
What is DG capacity on your LESCO bill?
DG stands for distributed generation. NEPRA defines a distributed generation facility as a facility set up by a prosumer using solar, wind or biogas to generate electricity up to 1 MW, connected to the distribution company’s network (Prosumer Regulations 2026, regulation 2(1)(ix)).
On your bill, the DG Capacity field shows the generation capacity LESCO has approved and registered against your connection, in kilowatts. Practically, it tells you three things:
- The size of system you are approved for. If it says 10 kW, LESCO has approved a 10 kW facility.
- The ceiling on what you may export. Export beyond this figure is not treated as free extra income — see the export MDI section below.
- What you would be re-applying against if you ever wanted to expand.
The DG Capacity figure sits close to the Sanctioned Load figure on the bill, and the relationship between those two numbers is the whole subject of this page.
What does DG capacity 0 kW mean on your bill?
A DG Capacity of 0 kW simply means no distributed generation facility is registered on that connection. You do not have an approved solar export arrangement.
That is the normal reading for any household without net metering, and it is nothing to worry about. It also appears if your solar is installed but the net metering application has not completed, or if the system runs entirely on self-consumption and batteries with no export connection. If you have been through the full LESCO process and it still shows 0 kW, that is worth querying, because it means the facility was never registered against your account.
Your sanctioned load is the ceiling on DG capacity
This is the rule that decides the answer in most cases. Regulation 3(2) states that the capacity of a proposed distributed generation facility shall not exceed the sanctioned load of the applicant’s premises.
So the calculation starts on your own electricity bill, not with a salesman’s quote. Whatever sanctioned load figure appears there in kW is your maximum DG capacity.
| Sanctioned load on your bill | Maximum DG capacity LESCO will approve |
|---|---|
| 3 kW | 3 kW system |
| 5 kW | 5 kW system |
| 10 kW | 10 kW system |
| 15 kW | 15 kW system |
| 25 kW | 25 kW system |
Not sure what size that works out to in practice? Our solar calculator works out your system size from your bill, and the full price list by system size shows what each one costs.
As a rough guide by house size, a 5 marla house typically sits in the 3 to 5 kW band, a 10 marla house in the 6 to 15 kW band, and a 1 kanal house in the 10 to 25 kW band — but always confirm against the sanctioned load actually printed on the bill rather than the house size.
The old 1.5 times sanctioned load rule is gone
This matters because most of the internet is still wrong about it, including pages that rank well. Under the previous net metering regime, applicants could be approved for up to 1.5 times their sanctioned load. The 2026 regulations removed that headroom entirely: the cap is now 1.0 times sanctioned load.
If a quote, a bill-checking website, or an installer tells you that you can install 1.5 times your sanctioned load, that information is out of date and the application will not be approved on that basis.
Sanctioned load vs connected load: which one counts?
These two terms get used interchangeably in conversation, and they are not the same thing.
- Connected load is the total of everything in your house that could draw power — every fan, light, motor and air conditioner added together.
- Sanctioned load is the maximum LESCO has formally approved and recorded for your connection. It is the contractual figure, and it is what appears on the bill.
For DG capacity, only the sanctioned load counts. Regulation 3(2) refers to the sanctioned load of the premises. Your connected load may be considerably higher, and it makes no difference to what LESCO will approve for solar.
Is DG capacity your panels or your inverter?
Regulation 3(2) says “capacity” without spelling out whether that means the DC rating of your panels or the AC rating of your inverter.
In practice the interconnection is assessed on the inverter’s AC capacity, because that is the most electricity your system can ever push into LESCO’s network. This is why a 10 kW inverter is often paired with 11 to 13 kW of panels: the extra panel capacity improves output in winter and in poor light without raising the figure the grid sees.
Confirm this with LESCO before finalising a design. Practice can differ between DISCOs and between regional offices, and it is far cheaper to ask than to redo an application.
What happens if you export more than your DG capacity?
This is the part people discover after installation, and it is worth understanding before you size a system.
Your meter records an export MDI — a maximum demand indicator for electricity flowing out to the grid. If your household load is low while generation is high, your instantaneous export can climb above your approved DG capacity. From the January 2026 billing cycle LESCO introduced an adjustment mechanism for exactly this case: export beyond the approved DG capacity is restricted, with additional export units limited in proportion to the registered DG capacity rather than credited in full.
This shows up as a fine on your electricity bill. LESCO and the other WAPDA distribution companies check the recorded export MDI against your registered DG capacity, and where you have exceeded it the penalty is applied to the bill itself. It is not a warning letter or a separate notice — it is a line on what you pay that month.
The fix sits in the inverter, not on the bill. Every modern hybrid and on-grid inverter can be given an export limit. Set that limit at or just below your approved DG capacity and the system never pushes more than the approved figure into the grid, however strong the generation is. The surplus is self-consumed, stored, or curtailed instead. A properly commissioned system has this configured on day one; if yours does not, it is a settings change on the inverter rather than a hardware problem.
This is a live risk on a deliberately oversized array, which is otherwise good practice. A 10 kW approved capacity paired with 13 kW of panels can push past 10 kW on a clear, cool day — and without export limiting, that is exactly the moment the penalty is triggered. Oversizing the panels is sensible. Leaving the export unlimited alongside it is not.
On the exact penalty calculation we would rather you had it in writing from LESCO for your own connection than take a figure from us: it is applied at the billing level and we have not found a single published formula that holds across every tariff. What we can say without qualification is that the fine is real, it lands on your bill, and export limiting prevents it.
Already have net metering? Do not increase your DG capacity
Everything in the next section applies to a new connection. If you already hold a net metering agreement approved before 9 February 2026, the advice is the opposite: leave your DG capacity alone.
Pre-February 2026 agreements are grandfathered on the old rate until the agreement term expires, which is worth roughly Rs 26 to 27 per exported unit against roughly Rs 11 under net billing. Three ordinary-looking actions break that protection: enhancing your DG capacity (regulation 4(1) requires fresh NEPRA concurrence for any modification to the facility’s technical parameters, and regulation 21(3) brings an extended agreement into conformity with the new rules), increasing your sanctioned load, and changing the name on the connection after a sale, inheritance or family arrangement.
The shift is not partial — the entire connection moves, not just any capacity you added. We have written this up in full, with the arithmetic and the safe ways to add generation: expanding a net metering system without losing the old rate. If you need more generation on a grandfathered connection, sizing the extra capacity for self-consumption with storage usually beats touching the agreement.
How to increase your sanctioned load with LESCO
This section applies to a new connection with no existing net metering agreement to protect. If you want more DG capacity than your sanctioned load allows, the answer is not to argue about the solar system — it is to apply to LESCO for an extension of load, and then apply for net billing against the new figure.
- Check the sanctioned load on your current bill.
- Apply to LESCO for an extension of load to the figure you actually need.
- Pay the demand notice LESCO issues and let the revised load appear on your bill.
- Apply for net billing with your DG capacity set at or below the new sanctioned load.
Two things to plan for. A load extension can require a meter change, and a larger load may require moving from a single-phase to a three-phase connection — which matters for the eligibility rule below. Budget time for it: this is a separate LESCO process with its own queue, running before the solar application starts. If the combined cost of the extension and the system is the obstacle, solar financing can cover both.
What a load extension costs
Two charges apply, and both are separate from the cost of the solar system itself. One is the government fee payable to LESCO; the other is our own charge for preparing and submitting the file:
| Charge | Amount |
|---|---|
| Government fee for load extension — payable to LESCO | Rs 1,500 per kW |
| File preparation and submission — SNM Solutions service charge | Rs 25,000 |
Worked example. Extending a connection from 8 kW to 15 kW adds 7 kW of load.
7 kW × Rs 1,500 = Rs 10,500 in government fee, plus our Rs 25,000 charge for handling the file = Rs 35,500 in total to get the sanctioned load raised, before anything is spent on the solar system.
Worth putting next to the system cost when you decide on a size. Going from 8 kW to 15 kW costs about Rs 35,500 in fees, while the difference in system price between those two sizes runs into the hundreds of thousands — so the extension fee is rarely the deciding factor, but it should not be a surprise either.
To be clear about which is which: the Rs 1,500 per kW is a government charge set by LESCO, and the Rs 25,000 is our own service charge for preparing the load extension file and submitting it end to end, alongside your net billing application. We would rather show it as a separate line than fold it into a system price and call the whole thing a government cost. These are the figures as we quote them in September 2026, and LESCO revises its own charges periodically, so confirm the current rate when you apply.
The 80% transformer rule: why applications get refused
The second rule has nothing to do with your house and everything to do with your street. Regulation 3(5) states that the licensee shall not entertain any application if the distributed generation capacity connected to a particular distribution transformer has reached 80% of its rated capacity.
This is a hard stop. If your neighbourhood transformer is saturated, a perfectly sized, perfectly documented application is refused — not because of anything you did, but because enough neighbours got there first.
Available headroom = (80% × transformer rated capacity) − solar already connected to it
Example: a 200 kVA transformer gives a cap of 160. If 130 kW of solar is already connected across the neighbourhood, only 30 is left. A 15 kW application fits. A 40 kW application is refused.
A note on kVA and kW. Transformers are rated in kVA (apparent power) while solar systems are quoted in kW (real power). The two differ by the power factor: kW = kVA × power factor. At a power factor of 0.9, a 200 kVA transformer corresponds to roughly 180 kW. Because the power factor assumed and the exact basis of the comparison are LESCO’s to state, ask the local office for the figure they are applying to your transformer rather than working it out yourself and planning around your own number.
How do you find out before paying? You cannot look this up yourself — the figure sits with LESCO. Your installer should check transformer headroom with the local LESCO office before taking money from you for a system that cannot be approved. At SNM Solutions we check this first, because a refused application after installation is the worst outcome for everyone.
If the transformer is full, the realistic options are to wait for LESCO to augment or split it, or to install solar without a net billing connection and size it for self-consumption instead of export. The second option is more attractive than it sounds now that exported units earn only about Rs 11, and it pairs naturally with battery storage.
Systems of 250 kW and above need a load flow study
Regulation 3(3) requires that any applicant proposing a facility of 250 kW or above must conduct and submit a load flow study, carried out either through LESCO itself or by a consultant registered with the Pakistan Engineering Council.
This affects factories, large commercial premises and housing societies rather than homes. Budget both cost and time for it: it is a technical study, not a form, and it must be completed before the application can proceed.
Can you get net metering on a single-phase connection?
No — and this surprises people, so it is worth stating plainly. The regulations define an applicant as a three-phase 400V or 11 kV domestic, commercial, industrial, agricultural or general services consumer, or a single point bulk supply consumer (regulation 2(1)(v), repeated in the Schedule-I interconnection agreement).
A single-phase connection therefore has to be converted to three-phase before a net billing application can be made. If you are on single phase and planning solar, treat the phase conversion and any load extension as one combined step with LESCO rather than two separate surprises.
25 kW and below: NEPRA approval no longer required
A genuinely helpful change, and one many installers have not caught up with. Under S.R.O. 1320(I)/2026, which amended the Prosumer Regulations, prosumers with systems of 25 kW or below no longer need to seek concurrence from NEPRA. The distribution company approves these directly.
Since the overwhelming majority of home systems fall under 25 kW, most residential applications now sit entirely with LESCO. That removes a whole step, and with it a common source of delay. The full LESCO net billing application process covers what is still required.
DG capacity in IESCO, MEPCO and other DISCO bills
The NEPRA Prosumer Regulations are national, so every rule on this page applies identically whichever distribution company bills you. The DG Capacity and Sanctioned Load fields appear on IESCO (Islamabad and Rawalpindi), MEPCO (Multan), GEPCO (Gujranwala), FESCO (Faisalabad), HESCO, PESCO and K-Electric bills the same way they do on LESCO’s.
What differs between DISCOs is administration, not the rules: processing speed, how easy it is to get a transformer headroom figure out of the local office, and how consistently the inverter-versus-panel question is treated. SNM Solutions installs in Lahore, Karachi and Islamabad, so we deal with LESCO, K-Electric and IESCO regularly.
Worked example: a 15 kW system in Johar Town
A house in Johar Town wants a 15 kW system.
The bill shows a sanctioned load of 8 kW. Under regulation 3(2) the maximum approvable DG capacity is 8 kW, so 15 kW is refused as applied for.
The owner applies to LESCO to raise the sanctioned load to 15 kW, which also requires a three-phase connection. Once the new load shows on the bill, a 15 kW DG capacity becomes permissible.
Next, the transformer check. The local transformer is 200 kVA with 130 kW of solar already connected, leaving 30 available. 15 kW fits, so the application can proceed.
At 15 kW the system is below 25 kW, so no NEPRA concurrence is needed and no load flow study is required. LESCO processes it directly. What that system costs in Lahore.
How long LESCO has to process your application
The regulations set the clock on the distribution company, which is useful to know when an application seems to have stalled. Under regulation 3, LESCO must acknowledge an application within 5 working days, complete its initial review within 15 working days, sign the agreement within 7 working days of being satisfied, issue the connection charge estimate within 7 working days of that, and install and commission the interconnection within 15 working days of your payment.
Once approved, the agreement runs for five years from commissioning and can be renewed by mutual consent (regulation 7). For the documents and the step-by-step process, see our LESCO net billing application guide, and for what changed in February 2026 overall, the net metering to net billing guide.
Frequently asked questions
What is DG capacity in a LESCO bill?
DG Capacity is the distributed generation capacity LESCO has approved and registered against your connection, shown in kilowatts. It is not a charge. It tells you the size of solar system you are approved for and the export ceiling your billing is assessed against. A reading of 0 kW simply means no solar generation facility is registered on that connection.
How is DG capacity calculated in net metering?
It is capped by the sanctioned load shown on your electricity bill. Under regulation 3(2) of the NEPRA Prosumer Regulations 2026, the capacity of a proposed distributed generation facility cannot exceed the sanctioned load of the premises. A separate check then confirms your distribution transformer has not already reached 80% of its rated capacity in connected solar.
Can I install a solar system bigger than my sanctioned load?
You can physically install it, but LESCO will not approve that capacity for net billing. To get a larger system approved you must first apply to increase your sanctioned load, pay the demand notice, and wait for the revised load to appear on your bill before applying for net billing.
Can my net metering application be rejected because of my neighbours’ solar?
Yes. Regulation 3(5) bars LESCO from entertaining any application once the distributed generation connected to your distribution transformer reaches 80% of its rated capacity. If enough neighbours have already connected solar, your application is refused regardless of how well prepared it is. The remedies are waiting for LESCO to upgrade or split the transformer, or sizing the system for self-consumption without an export connection.
Do I still need NEPRA approval for a home solar system?
Not for systems of 25 kW or below. S.R.O. 1320(I)/2026 exempted small-scale prosumers from seeking NEPRA’s concurrence, so the distribution company approves these directly. Nearly all home systems fall under this threshold.
Is DG capacity measured by my panels or my inverter?
In practice the inverter’s AC capacity is what the interconnection is assessed on, since that is the maximum your system can export. This is why installers commonly pair a 10 kW inverter with 11 to 13 kW of panels. Confirm the treatment with LESCO before finalising your design, as practice can vary between offices.
What does DG capacity 0 kW mean on my bill?
It means no distributed generation facility is registered against your connection, which is normal for any household without net metering. It also shows if solar is installed but the application has not completed, or if the system is self-consumption only with no export. If you completed the LESCO process and it still reads 0 kW, query it — the facility may never have been registered.
Does LESCO fine you for exporting more than your DG capacity?
Yes. LESCO and the other WAPDA distribution companies check your recorded export MDI against your registered DG capacity, and exceeding it is penalised directly on your electricity bill. From the January 2026 billing cycle, export units above the approved DG capacity are also restricted rather than credited in full. The fix is to set an export limit in your inverter at or just below your approved DG capacity, which a properly commissioned system should already have configured.
How much does a LESCO load extension cost?
Two charges apply. The government fee is Rs 1,500 per kW of additional load, payable to LESCO. On top of that, SNM Solutions charges Rs 25,000 to prepare and submit the file. Raising a connection from 8 kW to 15 kW adds 7 kW, so that is Rs 10,500 plus Rs 25,000, about Rs 35,500 in total, separate from the price of the solar system. These are September 2026 figures and LESCO revises its own charges periodically, so confirm the current rate when you apply.
Will transferring my electricity connection to another name cancel my net metering?
It ends the grandfathered arrangement. A transfer after a sale, inheritance or family arrangement is treated as a new arrangement, so a connection that held the old net metering rate moves onto net billing at roughly Rs 11 per exported unit. Check this before initiating a transfer on a property with an existing net metering agreement.
I already have net metering. Can I increase my DG capacity?
You can, but in most cases you should not. Enhancing the capacity, increasing the sanctioned load, or changing the name moves the entire connection onto net billing and the export rate drops from roughly Rs 26 to 27 down to roughly Rs 11. The loss on your existing export usually outweighs the gain from the added capacity.
Not sure what your sanctioned load allows?
Send us a photo of your LESCO bill and we will tell you the maximum system size you can get approved, check your transformer headroom with the local LESCO office, and quote the system that actually fits — before you pay anything.
WhatsApp us your bill → or call +92 321 878 3630