Net Metering is an effective way for solar panels owners to earn credit for the electricity they add to the grid. In this way, if your solar panels also produce extra energy that you don’t need, you can redirect it to the national grid and either reduce your electricity bill to zero or a negative value.
How does net metering work?
Net Metering is an effective policy for those who produce energy using solar power, and their system generates electricity more energy than what is required. With Net Metering, the nearest electric utility provides a bidirectional meter to the consumer, so they can record the excess energy they are adding to the national grid and earn credit for it.
It was September 2015 when NEPRA first issued its net-metering regulations by which consumers with three-phase connections to the national grid can get a net-metering facility for renewable energy installations, ranging from 1kW to 1MW.
How can you avail net metering facility in Pakistan?
One of the reasons why net Metering has become quite prevalent in Pakistan is because it is extremely easy to get the policy. The first step of moving towards net Metering is to install a solar system that is compliant with net Metering. Secondly, consumers need to fill out an application in order to apply for the license.
As part of the application process, the electric company will inspect the system, and once satisfied, it will issue the NOC. The consumer will then have to sign the agreement, after which the generation license will be given, and the net meter will start operating.
Consumers adding electricity to the national grid are compensated in the following ways:
- Their utility bills are reduced
- They get a payment for the extra energy added to the national grid
The compensation depends upon the rules as laid down by NEPRA. The fee for the application depends upon the size of the facility. For example, if your solar system produces 0 to 20 kilowatt of energy, you won’t have to pay any application fees. But if it produces 20 to 50 kilowatt, you will have to pay Rs. 500 and upwards, as the amount of energy further increases. Anyone can opt for this program as long as they comply with the conditions as specified by NEPRA.
Benefits of Net Metering in Pakistan
As already discussed, net Metering allows consumers to reduce their own utility bills or get a payment for the energy they provide. At the same time, they make good use of the extra energy their system produces because the energy they provide is given to the people in the nearby areas.
Accordingly, consumers that are conscious about the environment can help in reducing pressure on the national grid and also benefit other people while having their power meter run backward. However, for consumers that do not go for Net Metering, all the excess energy that their solar plants produce will be wasted.
Net Metering is definitely a very prospective policy for all those whose energy systems produce an excess amount of energy. If you also own a solar panel that produces extra energy, net Metering might be the perfect policy for you.