Solar Energy Policy
Net Metering Pakistan — Complete Guide 2025
Everything you need to know about net metering, net billing, NEPRA regulations, and how to maximize your solar investment in Pakistan.
What is net metering in Pakistan?
Net metering in Pakistan is a NEPRA-regulated billing mechanism that allows solar system owners (1kW to 1MW) to export excess electricity to the grid through their local DISCO and receive credits on their bill. As of 2024, Pakistan has transitioned to a 'net billing' model where exports are compensated at a NEPRA-determined tariff rather than retail rate. Volcan Engineering provides complete net metering facilitation for MEPCO and LESCO areas.
Understanding Net Metering in Pakistan
Pakistan's net metering policy, introduced under NEPRA's Alternative & Renewable Energy regulations, has been a game-changer for solar energy adoption across the country. By allowing consumers to connect their solar systems to the grid and export excess energy, net metering has made solar power financially attractive for millions of households and businesses.
As one of Pakistan's leading solar EPC companies, Volcan Engineering has helped hundreds of clients navigate the net metering process — from initial system design to final DISCO meter installation. With offices in both Bahawalpur and Multan, we provide complete facilitation services across the MEPCO service area.
Net Metering vs Net Billing
In 2024, Pakistan transitioned from net metering to net billing. Understanding the difference is crucial for making informed solar investment decisions:
Net Metering (Legacy)
1:1 unit offset. Exported kWh directly cancelled imported kWh at the same retail rate. Available for older installations.
Net Billing (Current)
Exports compensated at NEPRA-determined wholesale tariff. Lower credit per unit but solar remains highly profitable.
Hybrid Strategy
Maximize self-consumption with battery storage to minimize grid dependency. Volcan recommends hybrid for maximum savings.
How to Apply for Net Metering in Pakistan
The net metering application process involves several steps across your local DISCO and NEPRA. Volcan Engineering handles the entire process for our clients:
- Solar System Installation — Install a grid-tied solar system (1kW to 1MW) meeting NEPRA technical standards.
- DISCO Application — Submit an application to your DISCO (MEPCO, LESCO, FESCO, etc.) with system specifications, single-line diagrams, and installer credentials.
- DISCO Inspection — DISCO engineers inspect the installation for safety and compliance with grid interconnection standards.
- NEPRA Generation License — Apply for a Distributed Generation license from NEPRA (PKR 1,000 fee for up to 25kW).
- Bidirectional Meter Installation — DISCO installs a bidirectional meter that records both import and export energy.
- Grid Connection — System goes live and you start receiving net billing credits on your monthly electricity bill.
Required Documents for Net Metering
- CNIC copy of the applicant (system owner)
- Latest electricity bill from your DISCO
- Property ownership documents or NOC from property owner
- Solar system single-line diagram (SLD)
- System specifications (panels, inverter, capacity)
- Installer credentials and AEDB registration
- NEPRA generation license application form
- Photographs of the installed system
Is Solar Still Profitable Under Net Billing?
Absolutely. While the switch from net metering to net billing means lower export credits, solar remains one of the best investments in Pakistan. Here's why:
- Electricity tariffs in Pakistan continue to rise (15-20% annually), making self-consumption increasingly valuable.
- Solar panel prices have dropped significantly, reducing payback periods to 3-4 years.
- Hybrid systems with battery storage maximize self-consumption, reducing reliance on grid exports.
- Solar panels produce for 25+ years — the lifetime savings far exceed the initial investment.
- Government incentives and tax benefits for renewable energy installations continue.
For a detailed analysis of your potential savings, use our Solar Savings Calculator or Net Billing Calculator.
Volcan Engineering's Net Metering Services
As part of every solar installation, Volcan Engineering provides complete net metering/net billing facilitation at no additional charge. Our dedicated team handles all paperwork, DISCO coordination, and NEPRA applications. We have established relationships with MEPCO offices across South Punjab, ensuring smooth and timely processing of your net metering connection.
Get Free Net Metering Consultation
Our team will guide you through the entire process — from system sizing to DISCO approval.