What is Net Metering?
Net Metering is a billing that allows if you have installed solar panels on your rooftop and generate more electricity than you consume in daily life the extra units are fed/ sent into the grid.
These exported units are credited to your account and adjusted against your future electricity consumption or when you need.
This way, your bill reflects the net difference between the electricity consumed from the grid and the electricity supplied to it in a month.
How Net Metering Works
Net Metering works the following way:
Installation of Renewable Energy System
Consumers install a renewable energy system (most commonly solar panels) with a bi-directional meter that can record both import (electricity consumed) and export (electricity supplied).
Excess Generation
During sunny hours, if your solar panels generate more electricity than your household requires, the surplus is sent to the grid.
Grid Consumption
At night or during low sunlight, when the panels cannot generate enough electricity, consumers draw power from the grid which is generated during sunny hours of the day.
Billing Mechanism
- The imported units (taken from the grid) are recorded.
- The exported units (sent to the grid) are also recorded.
- At the end of the billing cycle, the consumer is charged only for the net consumption (imported – exported units).
For example: If you consumed 500 units from the grid but exported 300 units from your solar panels your net consumption would be 200 units. Your electricity bill will be based only on 200 units, not 500.
Benefits of Net Metering
Following are the benefits of Net Metering:
Financial Savings
Consumers reduce their electricity bills significantly. In some cases, if exported units exceed imported units, consumers may even earn credits or compensation.
Renewable Energy Promotion
Encourages the use of clean and sustainable energy sources which can reduce reliance on fossil fuels.
Reduced Load on National Grid
Excess power from consumers helps meet local demand which reduces pressure on MEPCO.
Energy Security
Promotes distributed generation (small scale production by many users), which is less vulnerable to large scale grid failures.
Environmental Impact
Decreases carbon emissions by replacing generation with solar or wind energy.
Net Metering in Pakistan
- Introduced under NEPRA’s Net Metering Regulations 2015, net metering is approved for consumers with renewable energy systems between 1 kW and 1 MW capacity.
- Green meters are installed by MEPCO to record both consumption and export.
- NEPRA issues a Generation License to eligible consumers, after which they can start exporting electricity.
Both households and industries have benefited, with solar power becoming increasingly popular in urban areas.
Important Note: Net Metering and Gross Metering are not the same things. To understand the difference between these terms, follow the link: https://mepcobll.com/blogs/gross-metering/
FAQs
Conclusion
Net Metering is a win-win solution for both consumers and MEPCO. It empowers households and industries to reduce their bills, encourages renewable energy adoption and contributes to Pakistan’s efforts for development.
However, for net metering to reach its full potential, government support and public awareness are essential.
