As solar adoption grows across Pakistan, homeowners and businesses are discovering that generating electricity isn’t the only benefit of going solar, you can also earn from the energy you produce. This is made possible through net metering, a government-backed mechanism that allows solar users to sell excess electricity back to the grid.

In this guide, we’ll break down what net metering in Pakistan is, who’s eligible, how the process works, and how much you can earn through your solar energy system.

What Is Net Metering?

Net metering is a billing arrangement that connects your solar energy system to the national grid. When your solar panels generate more power than you use, the surplus electricity is fed into the grid. In return, your electricity provider gives you credits or payments for that energy.

In simple terms, you earn from the extra solar power your system produces. During the day, when solar production is high, excess electricity is exported. At night, when you draw power from the grid, your exported units are adjusted against your consumption.

This system promotes energy independence, reduces reliance on traditional power sources, and helps Pakistan move toward renewable energy goals.

The Net Metering Policy in Pakistan

Net metering was officially introduced in Pakistan by the National Electric Power Regulatory Authority (NEPRA) in 2015 under the Distributed Generation and Net Metering Regulations.

The policy allows any consumer, residential, commercial, or industrial, with a solar system of up to 1 MW capacity ,to connect their setup to the grid and benefit financially.

This initiative aims to encourage renewable energy adoption, reduce the load on the national grid, help consumers offset their electricity bills, and promote clean energy generation across the country.

Who Can Apply for Net Metering in Pakistan?

Not every solar user automatically qualifies for net metering. To be eligible, you must meet specific technical and procedural requirements set by NEPRA and your local Distribution Company (DISCO).

Your solar system capacity must be between 1 kW and 1 MW, and your system should be installed at the same premises as your electricity connection. The system must be grid-tied, with a compatible inverter and safety equipment, and it should follow NEPRA and DISCO technical standards. You must also have a bi-directional meter (also known as a net meter) capable of recording both import and export units.

Eligible consumers include homeowners with rooftop solar panels, businesses and factories with larger systems, and institutions like schools or hospitals aiming to cut utility expenses.

The Net Metering Application Process

Applying for net metering in Pakistan involves several steps, but with proper documentation and system compliance, it’s a smooth process.

1. System Installation

Start by installing a grid-tied solar power system from a certified solar provider approved by the Alternative Energy Development Board (AEDB). These installers ensure your setup meets all the technical requirements for grid interconnection.

2. Submission of Application

Once installed, your provider submits a net metering application to your local DISCO (e.g., IESCO, LESCO, K-Electric, MEPCO, etc.). The application typically includes system layout and technical details, ownership documents, an electricity bill copy, a CNIC, and an undertaking or NOC from the property owner if applicable.

3. Site Inspection

The DISCO conducts a site inspection to verify your system’s safety and compatibility. If the system meets all criteria, approval moves to the next stage.

4. Signing of the Agreement

After a successful inspection, you’ll sign an Energy Purchase Agreement (EPA) with the DISCO. This agreement outlines the terms for buying back excess electricity from your system.

5. Meter Installation and Activation

A bi-directional (net) meter is installed to record electricity flow in both directions, import (from grid) and export (to grid). Once the meter is installed and activated, your net metering account begins.

6. Earning Starts

From this point, every unit of surplus energy you export to the grid will be recorded and credited on your monthly bill.

How Do You Earn Through Net Metering?

Your earnings depend on the amount of excess electricity your solar system generates. The DISCO purchases this energy from you at a rate determined by NEPRA, which typically aligns with the National Average Power Purchase Price (NAPP).

For example, if your system generates 600 units per month, and your household consumes 400 units, the extra 200 units go to the grid. Those 200 units are credited to your account, reducing your bill or rolling over as a balance for future months. In some cases, businesses with consistent surpluses may even receive payments after adjustment cycles.

Understanding the Net Metering Bill

Once your system is active under net metering, your electricity bill will show two key readings, import units (power you consumed from the grid) and export units (power your solar system sent to the grid). Your bill is calculated based on the net difference between the two.

If you export more than you import, the extra balance carries forward to the next billing month or can be settled as a monetary credit according to NEPRA’s policy.

Advantages of Net Metering in Pakistan

Net metering offers numerous financial and environmental benefits for both consumers and the nation. It helps reduce electricity bills, shortens the payback period for your solar investment, promotes sustainable energy usage, and contributes to grid stability. It also plays a key role in encouraging renewable energy adoption across communities and industries

How Much Can You Earn Through Net Metering?

The earnings depend on several factors such as system size, sunlight hours, consumption pattern, and tariff rates.

A typical 10 kW system in Pakistan can generate around 1,200–1,500 units per month. If a household consumes 700–800 units, the rest (400–700 units) can be sold to the grid, potentially earning several thousand rupees monthly, effectively turning your home into a micro power station.

Documents Required for Net Metering Application

You’ll need a copy of your latest electricity bill, CNIC of the applicant, proof of property ownership or tenancy, system design and technical specifications, an NOC from the building owner if applicable, and an undertaking for compliance with NEPRA standards.

Key Points to Remember

Net metering is available for systems between 1 kW and 1 MW and can only be installed by AEDB-certified providers. You earn credits or payments for every unit exported to the grid, and a bi-directional meter records both import and export readings. To start the process, you must sign an Energy Purchase Agreement with your relevant DISCO.

Future of Net Metering in Pakistan

With the country’s growing focus on renewable energy, net metering plays a central role in shifting toward sustainable electricity generation. Government incentives and NEPRA’s continued support are helping more consumers adopt solar power systems every year.

As energy costs rise, net metering offers a long-term, stable, and profitable way to manage electricity expenses while contributing to a cleaner environment.