Net Metering

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Net Metering

Pakistan has been facing an energy crisis for the past few years as the demand and supply gap has widened. The country’s current energy demand far exceeds its generation resources, and it has been facing an energy shortfall of 4000MW. As a result, load-shedding and power blackouts have become severe issues. Net metering is an electricity policy for consumers, who own/plan to set up a Renewable Energy facility, which allows them to produce electricity

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FPL Net Metering

Net metering is an electricity policy for consumers, who own/plan to set up a Renewable Energy facility, which allows them to produce electricity (using wind and solar) for their own use and supply the excess produce to the national grid setting-off units of electricity consumed during off-peak hours or at times when the production from RE facility is not enough to meet the consumer load.

The consumer will either pay a reduced utility bill or get paid for access energy exported to the grid, as stated in the contract with the relevant DISCO.

NEPRA, in September 2015, issued its net-metering regulations that allow the DISCOs in Pakistan to purchase excess units of electricity produced by the consumers and net them off against the units consumed from the grid. Renewable Energy is a long-term power solution.

Solar PV Technology gives access to affordable electricity supply during system life. Residential and commercial customers can switch their electricity load to Renewable Energy (RE) and can slash their power bills.

The picture below illustrates the flow of electricity from the distribution company (DISCO) to the end-user, who can now install a renewable energy facility and send the excess electricity back to the distribution grid and earn credit for his exports.

FPL Net Metering in Pakistan

NEPRA announced the official National Electric Power Regulatory Authority (Alternative & Renewable Energy) Distributed Generation and Net Metering Regulations on September 1, 2015.

As per these regulations, any customer of the national grid (having a three-phase connection) can avail of the net-metering facility for small-scale (1kW to 1MW) Renewable Energy installations.

In Pakistan, net-metering is the first policy mechanism of the Policy for Development of Renewable Energy for Power Generation 2006, which has been fully implemented.

Section 8.4.2 of the RE Policy provides that subject to technical considerations and without discrimination and upon request by distribution end-users, DISCOs shall enter into a net-metering agreement with qualified end-users, interested in installing the RE system.

How Net Metering Works