Net Metering in Pakistan| Cost & Requirements|
As electricity prices in Pakistan have gone up a lot, more homes are turning to renewable energy using a system called net metering. With net metering, people can use solar energy to produce their own electricity. Right now, about 150,000 to 170,000 homes in Pakistan are using this system. This helps them create their own power and save money. Net metering is becoming more popular as people learn about its benefits and how it can save them money.
What is Net Metering in Pakistan?
Net metering is a way for people with solar panels to sell extra electricity back to the national grid. The cost of electricity that people pay depends on how much they use and when they use it. This price is set by the National Electric Power Regulatory Authority (NEPRA). They decide the rates for buying and selling electricity.
With net metering, the money you save depends on the rates that NEPRA sets. Usually, when people sell electricity back to the grid, they get paid a bit less than what they would pay to buy the same amount of electricity. Understanding these rates is important if you want to use net metering.

Here is the AI-generated illustration explaining the net metering mechanism for solar energy. It shows how electricity flows between the house’s solar panels and the national grid during the day and night.
What rate NEPRA Pay to Solar System Owners?
The savings and money you can make from net metering depend on the rates set by NEPRA. Right now, NEPRA pays RS. 19.32 per kilowatt-hour (kWh) for electricity that solar system owners send back to the grid.
Electricity rates can be different depending on the time of day. During “off-peak” times (like late at night or early in the morning), electricity is cheaper. But during “peak” times (like 5 p.m. to 10 p.m.), electricity is more expensive.
Update (September): NEPRA has decided to buy electricity from solar system owners at off-peak rates. This means that even though most electricity is used during peak hours, the electricity from solar panels is only sold during off-peak hours.
How Net Metering Bill is Calculated ?
Let’s say a home with a 5kW solar system makes 600 kWh of electricity in a month. They use 200 kWh and send the extra 400 kWh back to the grid. Here’s how the calculation works:
- 600 units made by solar panels.
- 400 units sent back to the grid.
- 80 units of electricity bought from WAPDA.
For the off-peak electricity:
- The solar panels send 400 units to the grid at Rs. 19.32/kWh = Rs. 7,728.
- The 80 units bought from WAPDA at Rs. 19.32/kWh = Rs. 1,545.
- Balance: Rs. -6,128 (because you sent more electricity than you used).
If you need 200 units during peak hours when the solar panels aren’t working:
- 200 units bought at Rs. 25/kWh = Rs. 5,000.
- Monthly bill: Rs. -1,126 (Rs. 5,000 – Rs. 6,128).
- This means you would actually receive Rs. 1,126 from the grid for that month.

How to Apply for Net Metering in Pakistan ?
NEPRA started the net metering program in 2015, allowing people to sell extra electricity to the national grid. To apply for net metering in Pakistan, follow these steps:

Install a Solar System
You need a solar system at your home. It should have a three-phase meter connection and be either hybrid or on-grid.

Contact an Approved Solar Company:
You must apply through a solar company that is registered with the Alternative Energy Development Board (AEDB). NEPRA does not allow individual applications.

Prepare the Application:
The solar company will ask for documents like your electricity bill and ID card. They will help you submit the application to the right department.

Inspection and NOC:
The Punjab Energy Department will inspect your setup and issue a No Objection Certificate (NOC) to confirm that everything meets the rules.

Sign the Agreement
After getting the NOC, you will sign a contract with your electricity supplier, like LESCO, which allows you to sell extra electricity to the grid for three years.

Get a Generation License
NEPRA will issue you a generation license. This license allows you to produce electricity and sell it to the grid for three years

Start Net Metering
Once you have the license, net metering will start. You will have a net meter installed, which will track how much electricity you send to the grid.
How Does Net Metering Help in Pakistan?
Net metering allows people to use solar panels to produce electricity and sell any extra to the national grid. NEPRA manages the rules for net metering in Pakistan, including how it works and who can use it.
To use net metering in Pakistan, you need:
- A solar system between 1kW and 1MW in size.
- A three-phase connection.
- A certified installer to set up your system.
- An account with an electricity company like IESCO, LESCO, or PESCO.
Net metering helps people get credit or money for the extra electricity they produce and send to the grid.
Benefits of Net Metering in Pakistan
- Lower Electricity Bills: Net metering can significantly reduce your electricity bills. You earn money for the extra power you send to the grid.
- No Need for Expensive Batteries: With net metering, you don’t need to buy batteries to store extra power, saving you money.
- Encourages Renewable Energy: Net metering makes more people switch to solar power, helping to protect the environment and save non-renewable energy sources.
- Reduces Grid Pressure: By adding extra power to the grid, you help reduce the pressure on the national electricity supply.
How Long Does It Take to Get Net Metering?
After installing the solar system, it can take 30 to 60 days to get the net metering set up and running.