Solar Pakistan

How to Apply for Net Metering with NEPRA License: Legal Steps for NEPRA Net Metering Approval in Pakistan

Energy Expert

Solar Energy Expert

Updated: 8 min read
Solar panels with net metering connection in Pakistan

Key Takeaway: Net metering allows solar system owners in Pakistan to sell excess electricity back to the grid, reducing bills. The NEPRA approval process involves application to your DISCO, technical review, and bi-directional meter installation.

Introduction

With rising electricity costs and increasing environmental concerns, many homeowners and businesses in Pakistan are turning to solar power as a sustainable and cost-effective solution. Net metering allows consumers to generate their own electricity through solar panels and feed excess power back into the national grid, receiving credits on their electricity bills.

To legally connect your solar system to the grid, you must obtain Net Metering Approval from NEPRA (National Electric Power Regulatory Authority). This guide provides a step-by-step process for applying for net metering with a NEPRA license in Pakistan, ensuring compliance with all legal requirements.

What is Net Metering?

Net metering is a billing mechanism that credits solar energy system owners for the electricity they add to the grid. For example, if your solar panels generate more electricity than you use, the surplus is sent to the grid, and your utility provider adjusts your bill accordingly.

Benefits of Net Metering in Pakistan

  • Reduced Electricity Bills – Offset your consumption with solar power
  • Earn Credits – Get compensated for excess energy fed into the grid
  • Environmentally Friendly – Reduce carbon footprint
  • Energy Independence – Less reliance on unstable grid power

NEPRA introduced the Net Metering Regulations in 2015, allowing consumers to install renewable energy systems (up to 1 MW capacity) and connect them to the national grid. The Alternative Energy Development Board (AEDB) and distribution companies (DISCOs) facilitate the process.

Key Stakeholders in Net Metering Process

  1. NEPRA – Grants net metering licenses
  2. DISCOs (e.g., LESCO, IESCO, K-Electric) – Handle application processing and meter installation
  3. AEDB – Promotes renewable energy policies
  4. Solar Vendors/EPC Companies – Install and commission solar systems

Step-by-Step Guide to Apply for Net Metering in Pakistan

Step 1: Determine Eligibility

Before applying, ensure:

  • You are a legal electricity consumer with a valid connection
  • Your solar system capacity does not exceed 1 MW
  • Your DISCO allows net metering (check with your local power provider)

Step 2: Select a NEPRA-Accredited Solar Vendor

NEPRA requires that your solar system be installed by a licensed vendor. Verify their accreditation before proceeding.

Step 3: Submit Application to Your DISCO

  1. Obtain Net Metering Application Form – Available on your DISCO's website (e.g., LESCO, IESCO, K-Electric)
  2. Attach Required Documents:
    • Copy of CNIC
    • Latest electricity bill
    • Site single-line diagram (SLD)
    • Solar system specifications (inverter, panels, etc.)
    • Vendor's NEPRA accreditation certificate
  3. Submit Application – Physically or online (if available)

Pro Tip: The entire process typically takes 4-8 weeks. Follow up with your DISCO weekly to avoid delays.

Common Challenges & Solutions

Delays in DISCO Processing

Some DISCOs take longer than the mandated 30 days for approval.

Solution: Follow up regularly and escalate to NEPRA if needed.

High Upfront Costs

Solar systems require significant initial investment.

Solution: Explore solar financing options (banks offer green energy loans).

NEPRA Net Metering Tariff & Billing

Feature Details
Compensation Rate 1:1 (credited at same rate as consumption)
Banking Period 12 months (excess units expire after 1 year)
Billing Cycle Monthly net calculation

Ready to Start Your Net Metering Application?

Get a free consultation with our solar experts to guide you through the NEPRA approval process.

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