Solar Net-Metering

Net-Metering

What is Solar Net-Metering?

Net-metering is a billing mechanism that allows renewable energy consumers to connect to the grid and receive credits or compensation for any surplus energy they generate from the WAPDA (or the distribution company). However, individuals cannot directly apply for net metering in Pakistan. It is necessary to connect with an AEDB-registered solar company to avail of the net metering facilities. The solar company will prepare the application on behalf of the consumer and obtain approval from the Punjab Energy Department and NEPRA. Subsequently, the relevant departments will sign an agreement and issue the NOC and Generation License, granting the consumer the authority to generate renewable energy and sell it back to the national grid, thereby reducing electricity bills.
For efficient and quick approval of your Net Metering application, choose SNM Solutions which has extensive experience and a high success rate in obtaining Net Metering System approvals.

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How Does Net-Metering Work?

To better understand how net-metering works, follow few key steps:

  1. Installation: Install solar panels on your property. This system generates electricity from the sun.
  2. Connecting to the Grid: The renewable energy system is connected to the local electrical grid, allowing the excess electricity produced to flow back into the grid.
  3. Metering: A bidirectional meter is installed to measure the electricity that is both consumed from and injected into the grid. This meter records the net amount of electricity exchanged between the system and the grid.
  4. Electricity Usage: When the renewable energy system produces more electricity than the property consumes, the excess is sent back to the grid, and the meter records a credit.
  5. Credit Calculation: The credits are calculated based on the difference between the electricity generated and consumed over a billing period. The exact calculation varies by location but typically involves multiplying the surplus electricity by a predetermined rate.
  6. Billing and Compensation: At the end of the billing period, the electricity bill reflects the net amount of energy consumed or produced. If the property has generated more energy than it has consumed, the surplus is credited to the next month’s bill or, in some cases, paid out to the system owner.

Benefits of Net-Metering

Net-metering offers several benefits to both individuals and society as a whole. Here are some of the key advantages:

  1. Cost Savings:
    By producing electricity from a Net-metered Solar System, homeowners and businesses can significantly reduce their energy bills and get rid of escalating energy costs.

  2. Environmental Impact:
    Net-metering encourages the use of clean energy sources, such as solar power, which helps to reduce greenhouse gas emissions and combat climate change.

  3. Grid Stability:
    The transmission of excess electricity into the grid helps balance supply and demand during peak consumption periods, enhancing overall grid stability.

  4. Energy Independence:
    Net-metering allows individuals and businesses to become more energy self-sufficient, reducing their reliance on non-renewable energy sources like fossil fuels.

Is Net-Metering Available Everywhere?

While net-metering is available in many jurisdictions, the policies and regulations surrounding it vary from place to place. Some regions have specific programs and incentives in place to promote net-metering, while others may have less favorable conditions.

What is the eligibility criteria of Net-Metering?

The Eligibility Criteria of Net-metering in Pakistan is as follows:

  1. Applicant should have a 3-Phase Electricity Meter at their premises.
  2. Electricity Meter Connection must be in the name of the applicant.
  3. Solar PV range should be 1kw-10MW.
  4. The voltage supply level should be 400v to 10kv.
  5. Solar consumers must have a connection with a registered company to transform their existing solar systems into NET METERING ENABLED solar systems.

How can I apply for Net-Metering?

You can apply for Net-metering by following these steps:

  1. Install an On-grid/Hybrid Solar System at your premises.
  2. Connect with an AEDB registered solar company to avail of the net metering facilities because individuals can’t apply directly for net metering in Pakistan under the Nepra 2015 regulation.
  3. After you contact an AEDB-registered solar company such as SNM Solutions, the process of your net metering application begins. The solar company will prepare the application on behalf of you (the consumer) and obtain approval from the Punjab Energy Department and NEPRA. Subsequently, the relevant departments will sign an agreement and issue the NOC and Generation License, granting the consumer the authority to generate renewable energy and sell it back to the national grid, thereby reducing electricity bills.


SNM Solutions can help you through all the way from “solar system installation” to “NOC issuance” and the “activation of net metering” offloading your stress to do all the steps. Simply get in touch with us and let our professionals handle your net metering system with expertise and efficiency.

on-grid

On-Grid Solar System

An On-grid solar system, also known as a grid-tied or grid-connected solar system, is a type of photovoltaic (PV) system that allows individuals or businesses to generate electricity from solar energy and feed it directly into the existing electrical grid.

off-grid solar system

Off-Grid Solar System

Off-grid solar systems are commonly used in remote areas where it is impractical or cost-prohibitive to connect to the grid. They are also popular for cabins, campsites, and other locations where grid access is limited or unavailable. 

hybrid solar system

Hybrid Solar System

A Hybrid Solar System is a combination of on grid and off grid solar systems. It stores your excess solar energy generated by solar panels with batteries and also provides backup power during grid failures.

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