Net Metering in Pakistan 2025 – Policy, Benefits, Process & Tariff
Net metering has become one of the most important topics in Pakistan’s renewable energy shift. As electricity costs continue to rise, more households and businesses are turning to solar energy to cut down their bills. But simply installing solar panels is not enough. To truly maximize savings, net metering allows you to sell extra electricity back to the grid and get credits on your bill.
In this guide, we will explain everything you need to know about net metering in Pakistan – how it works, who is eligible, the benefits, challenges, and the future of this system.
What is Net Metering?
Net metering is a billing mechanism that connects your solar system with the national grid. It allows you to use electricity from your solar panels when available, and if your system generates more power than you consume, the extra units are exported to the grid. In return, your utility company provides you credits that reduce your electricity bill.
This system ensures that no energy goes to waste. It also helps the country reduce its dependence on imported fuel by using clean solar power.
How Does Net Metering Work?
The process is simple but very effective. When you install an on-grid solar system, a special bi-directional meter is connected to your home or business.
- During the day, your solar panels generate electricity.
- Any excess power that you don’t use is sent to the grid.
- When you need more electricity at night or on cloudy days, you can import from the grid.
- At the end of the month, your bill is adjusted by calculating imported and exported units.
In this way, you only pay for the “net” electricity consumed, hence the name net metering.
Net Metering Policy in Pakistan
In 2015, NEPRA (National Electric Power Regulatory Authority) introduced the net metering regulations in Pakistan. According to this policy:
- Systems from 1kW to 1MW are eligible.
- Both residential, commercial, and industrial users can apply.
- The scheme is managed by NEPRA along with local distribution companies (DISCOs) such as LESCO, MEPCO, and K-Electric.
Over the years, the government has encouraged solar adoption, and net metering has become a key part of Pakistan’s renewable energy vision.
Eligibility and Requirements
To apply for net metering in Pakistan, you need to meet some basic conditions:
- A grid-tied solar system between 1kW and 1MW.
- A proper inverter that is compatible with the grid.
- Availability of grid connection in your area.
- Documents including CNIC, electricity bill, system design, and application forms.
Once approved, your utility provider installs a bi-directional meter and connects your system with the grid.
Benefits of Net Metering Pakistan
Net metering offers multiple advantages for households and businesses:
- Lower electricity bills – Extra solar units exported to the grid reduce your monthly cost.
- Faster return on investment – The payback period of solar systems becomes shorter.
- Energy independence – Less reliance on WAPDA or K-Electric.
- Environmental benefits – Contributes to reducing carbon emissions.
- 24/7 usage – You can still use electricity at night using credits earned during the day.
Challenges and Limitations
While net metering is highly beneficial, there are a few challenges in Pakistan:
- High initial installation cost of solar panels.
- Slow approval process from some distribution companies.
- Grid dependency – during power outages, on-grid systems shut down unless combined with batteries.
- Policy changes and tariff revisions may affect long-term planning.
Financial Aspects of Net Metering
One of the main reasons people choose net metering is financial savings. The tariff applied for exported units is usually close to the electricity tariff charged by DISCOs. This means you can offset a large portion of your bill.
Many banks in Pakistan also offer green energy financing schemes under the State Bank of Pakistan, making solar systems more affordable. For most households, the payback period after installing solar with net metering is between 3 to 5 years.
Step by Step Net Metering Process
Here’s how the process usually works:
- System design and feasibility study
- Application submission to the relevant DISCO (LESCO, MEPCO, IESCO, K-Electric, etc.)
- Technical review and inspection by authorities
- Installation of bi-directional meter
- NEPRA licensing approval
- System activation and monthly billing with adjustments for import/export units
Role of Distribution Companies (DISCOs)
Different DISCOs in Pakistan handle net metering applications, including:
- LESCO (Lahore)
- IESCO (Islamabad)
- MEPCO (Multan)
- K-Electric (Karachi)
- FESCO, SEPCO, GEPCO, and others
While the process is similar, timelines and approval speeds may vary depending on the company.
Net Metering for Different User Types
Net metering benefits all categories of consumers:
- Residential Homes – Perfect for reducing bills and enjoying clean power.
- Commercial Buildings – Offices and shops with high daytime usage can save a lot.
- Industrial Units – Factories with large-scale consumption can recover costs quickly.
- Agriculture Sector – Tube wells and irrigation systems can run more affordably.
On-Grid vs Off-Grid vs Hybrid Systems
- On-Grid Systems – Work directly with the grid and are eligible for net metering.
- Off-Grid Systems – Use batteries only, not connected to the grid, so not eligible.
- Hybrid Systems – Combine both, giving you backup during load-shedding along with net metering benefits.
Case Studies in Pakistan
Many households in Lahore and Islamabad have already shifted to net metering. A typical 10kW system can save more than Rs. 25,000 per month, depending on usage and sunlight availability. Businesses are also adopting it to cut down overhead costs.
Future of Net Metering in Pakistan
Pakistan has set renewable energy targets for 2030, and solar power will play a major role. With rising demand and falling panel prices, net metering is expected to grow further. In the future, smart grids and energy storage systems will make net metering even more efficient and reliable.
Frequently Asked Questions
Final Thoughts
Net metering in Pakistan is one of the best ways to make solar energy more affordable and practical. It not only lowers electricity costs but also supports the country’s clean energy goals. Whether you are a homeowner, a business, or an industrial user, investing in solar with net metering can provide long-term savings and energy independence.
