Net Metering in Pakistan 2026 — Complete Guide, Eligibility & How to Apply

🔌 Net Metering in Pakistan 2026 — Complete Guide, Eligibility & How to Apply

Net metering allows solar owners in Pakistan to sell excess electricity to the grid and receive credits on their bill. This complete guide covers NEPRA regulations, eligibility, all DISCOs, step-by-step application, billing explained, and how much you can actually save.

📅 Updated May 2026  |  🇵🇰 Pakistan  |  ⏱️ 9 min read

✅ All DISCOs Covered 📋 Step-by-Step Application 💰 Billing Explained 📅 2026 Updated

1. What is Net Metering & How Does It Work in Pakistan?

Net metering is a billing arrangement approved by NEPRA (National Electric Power Regulatory Authority) that allows solar system owners to export excess electricity to the national grid and receive credits against their electricity consumption.

9
DISCOs offering net metering
1 MW
Max system size eligible
2015
NEPRA net metering launched
25 yr
Net metering license duration

How it works — simple explanation

  • Day time: Your solar panels generate electricity. You use what you need — lights, AC, appliances. Any excess flows to the DISCO grid through a bi-directional meter.
  • Credit earned: For every unit exported, you earn a credit on your bill at the "avoided cost" rate set by NEPRA.
  • Night time: You import from the grid as normal. Your bill is reduced by the credits earned during the day.
  • Monthly billing: Your bill shows import units consumed minus export units credited. You only pay for the net difference (+ fixed charges).
  • Annual settlement: If your credits exceed consumption in a month, they roll forward. At year-end, any remaining credits may lapse depending on your DISCO's policy.
Important 2026 update: NEPRA revised net metering export rates in 2025–2026. Export rates in most DISCOs are now at "avoided cost" — which is lower than the retail tariff you pay for imported units. This means net metering is still financially very strong, but not a 1-for-1 unit exchange as some consumers expect. The exact export rate varies by DISCO — confirm with your DISCO before installation.

2. Who is Eligible for Net Metering in Pakistan?

Under NEPRA's Net Metering Regulations, the following consumers are eligible:

  • System size: Solar system capacity must not exceed your sanctioned load. Residential connection of 5kW sanctioned load can install up to 5kW solar system.
  • Consumer category: Residential (domestic), commercial, and industrial consumers are all eligible
  • Grid connection: You must be connected to a DISCO that supports net metering (all 9 major DISCOs do)
  • Inverter approval: Your inverter must be on NEPRA's approved equipment list — major brands (GoodWe, Sungrow, Solis, Growatt, Huawei, Fronius) are all approved
  • Single-phase or three-phase: Both eligible. Three-phase connections can support larger systems
  • Maximum system size: 1 MW (1,000 kW) — residential systems are far below this
⚠️ You cannot apply for net metering if your solar system exceeds your sanctioned load. To install a larger system, you must first increase your sanctioned load through your DISCO — which requires a separate application and fee.

3. All DISCOs — Net Metering Status & Approval Times 2026

All 9 major distribution companies in Pakistan support net metering under NEPRA regulations. Approval times and processing efficiency vary significantly:

⚡ LESCO — Lahore

Fastest processing. 4–8 weeks typical. Most experienced with solar approvals in Pakistan.

⚡ MEPCO — Multan

Covers South Punjab. 6–12 weeks. High solar adoption area.

⚡ IESCO — Islamabad

Covers Islamabad/Rawalpindi. 5–10 weeks. Good processing record.

⚡ GEPCO — Gujranwala

Covers Gujranwala, Sialkot. 8–14 weeks.

⚡ FESCO — Faisalabad

Covers Faisalabad, Sargodha. 8–14 weeks.

⚡ HESCO — Hyderabad

Covers Hyderabad, interior Sindh. 10–16 weeks.

⚡ SEPCO — Sukkur

Covers upper Sindh. 10–16 weeks.

⚡ PESCO — Peshawar

Covers KPK. 10–16 weeks. Growing solar market.

⚡ K-Electric — Karachi

Private DISCO. 6–14 weeks. Has own net metering process — slightly different from NEPRA standard.

Your AEDB-registered installer should handle the net metering application as part of their service. Always confirm this is included in your installation contract before signing.

4. How to Apply for Net Metering in Pakistan — Step by Step

1

Choose AEDB-Registered Installer

Select an installer registered with the Alternative Energy Development Board (AEDB). Only AEDB-registered installers can submit net metering applications. Ask for their AEDB registration certificate before signing any contract. Verify it is current (not expired).

2

Solar System Installation

Your installer installs the solar system according to DISCO technical specifications. The inverter must be on NEPRA's approved equipment list. Your installer should verify this before purchasing equipment. Improper installation can result in rejection of the net metering application.

3

Prepare Documentation

Gather all required documents (see Section 5 below). Your installer will prepare the technical documents — single-line diagram, inverter specs, panel specs, installation certificate. You provide the personal and connection documents.

4

Submit Application to DISCO

Your installer submits the net metering application to your DISCO's customer service center along with all documentation. Pay the required application fee (varies by DISCO and system size — typically Rs. 5,000–25,000). Keep the application receipt.

5

DISCO Technical Inspection

The DISCO sends a technical team to inspect your installation. They check inverter settings, protection devices, wiring, earthing, and safety compliance. Be present during this inspection. Your installer should accompany the inspection team.

6

Bi-Directional Meter Installation

After approval, the DISCO installs a bi-directional (import/export) meter at your premises. This replaces your existing single-direction meter. The meter records both units imported from the grid and units exported to the grid separately. There may be a meter installation fee (Rs. 3,000–8,000 typically).

7

Start Earning Credits

From the first billing cycle after meter installation, your bill will show both import and export readings. You'll see "units imported" and "units exported" on your bill. Net metering credits begin immediately. Your first bill may show a significant reduction.

5. Documents Required for Net Metering Application

Personal & Connection Documents (you provide)

  • Copy of CNIC (National Identity Card) of the account holder
  • Latest electricity bill (showing consumer reference number, sanctioned load, and billing address)
  • Proof of property ownership or tenancy agreement
  • Application form (obtained from DISCO or your installer)

Technical Documents (installer prepares)

  • Single-line electrical diagram of the solar installation
  • Inverter datasheet and NEPRA approval certificate for your inverter model
  • Solar panel datasheets
  • Installation completion certificate signed by AEDB-registered installer
  • AEDB registration certificate of installer
  • System specification summary (total capacity, panel count, inverter model)
Tip: Keep digital copies of all documents. DISCO offices sometimes lose paperwork. WhatsApp your installer and keep email confirmations of every submission. If there are delays beyond the NEPRA-mandated timeline, you can escalate to NEPRA's consumer complaint portal.

6. Net Metering Billing Explained

Understanding your net metering bill prevents confusion and helps you verify you're getting full credit for your exported units.

Bill Line ItemWhat It MeansExample (5kW system, Lahore)
Units ImportedElectricity you consumed from DISCO grid350 units/month
Units ExportedExcess solar electricity sent to grid280 units/month
Net Units BilledImported minus exported (what you pay for)70 units
Energy ChargesYour 70 net units × current tariff rate~Rs. 3,150 (at Rs. 45/unit)
Fixed ChargesMeter rent, FC surcharge — not offset by solarRs. 1,500–3,000
Total BillEnergy charges + fixed charges + taxes~Rs. 6,000–8,000
Pre-solar billWithout solar (630 units × Rs. 45)~Rs. 32,000+
⚠️ Fixed charges are NOT offset by net metering. Even if you export more than you import, you still pay meter rent, fuel adjustment charges (FAC), and other fixed surcharges. This is why your bill never goes to zero — typically Rs. 2,000–5,000/month minimum even with a large solar system.

7. How Much Can You Save with Net Metering?

Savings depend on your system size, city (sun hours), consumption pattern, and current tariff. Here are realistic estimates for a 5kW system:

CityMonthly GenerationMonthly Bill ReductionAnnual Savings5-Year Savings
Quetta~745 kWhRs. 28,000–33,000~Rs. 3.7 Lac~Rs. 18.5 Lac
Karachi~638 kWhRs. 24,000–28,000~Rs. 3.2 Lac~Rs. 16 Lac
Multan~585 kWhRs. 22,000–26,000~Rs. 2.9 Lac~Rs. 14.5 Lac
Lahore~531 kWhRs. 20,000–24,000~Rs. 2.6 Lac~Rs. 13 Lac
Islamabad~478 kWhRs. 18,000–21,000~Rs. 2.3 Lac~Rs. 11.5 Lac

*Savings at Rs. 45/unit. Actual savings increase as electricity tariffs rise. Fixed charges (Rs. 2,000–5,000/month) are not offset by net metering and are excluded from savings.

8. Common Net Metering Problems & Solutions

❌ Application rejected by DISCO

Common reasons: Non-AEDB installer, inverter not on approved list, system size exceeds sanctioned load, incomplete documents. Solution: Use AEDB-registered installer, verify inverter approval before purchasing, check sanctioned load on your electricity bill.

❌ Approval taking too long

NEPRA mandated timeline: DISCOs must process net metering applications within 30 days of complete documentation. If delayed beyond this, you can file a complaint with NEPRA's consumer portal (nepra.org.pk). Keep all submission receipts with dates as evidence.

❌ Export units not credited on bill

Solution: Check that bi-directional meter is correctly configured. Compare meter readings on site vs bill. If discrepancy, contact DISCO billing department with meter photo and bill copy. Your installer can also verify inverter export data via monitoring app.

❌ Neighbour says they got higher export rates

Export rates have changed multiple times since 2015. Earlier adopters may have different rate agreements. Confirm your current DISCO export rate directly with the billing department — rates in 2026 may differ from what you read on older forums or from neighbours who applied years earlier.

Frequently Asked Questions

Net metering in Pakistan is a NEPRA-regulated arrangement where solar system owners can export excess electricity to their DISCO grid and receive bill credits in return. During the day, your solar panels generate electricity — what you don't use gets exported to the grid. At night you import from the grid as normal. Your monthly bill is calculated on the net difference (imports minus exports). All 9 major DISCOs in Pakistan offer net metering under NEPRA regulations.

  • LESCO (Lahore): 4–8 weeks — fastest in Pakistan
  • IESCO (Islamabad): 5–10 weeks
  • MEPCO (Multan): 6–12 weeks
  • K-Electric (Karachi): 6–14 weeks
  • GEPCO / FESCO: 8–14 weeks
  • HESCO / SEPCO / PESCO: 10–16 weeks

NEPRA mandates 30-day processing — but in practice most DISCOs take longer. Your AEDB-registered installer handles the application. Ensure net metering application is included in your installation contract.

NEPRA revised net metering export rates in 2025–2026. Export rates in most DISCOs are now at "avoided cost" — which is lower than the retail tariff you pay when importing from the grid. The exact rate varies by DISCO and is updated periodically. Confirm your specific DISCO's current export rate before installation. Net metering remains financially very attractive even at reduced export rates — a 5kW system in Lahore still saves Rs. 20,000–24,000/month including both self-consumption savings and export credits.

No — net metering applications in Pakistan must be submitted by an AEDB-registered installer. The application requires technical documentation (single-line diagram, installation certificate, installer AEDB certificate) that only a registered installer can provide. Attempting to install solar yourself and apply for net metering without an AEDB installer will result in rejection. Always use an AEDB-registered professional — it also ensures proper installation safety and protects your inverter warranty.

If your exported units exceed your imported units in a given month, the excess credits roll forward to the next month's bill. At the end of the annual billing cycle (typically June or December depending on DISCO), any remaining unused credits may lapse — they are generally not paid out in cash by DISCOs. This is why it's important not to massively oversize your system beyond your actual consumption — excess generation beyond your annual consumption provides diminishing returns.

Yes — hybrid inverters with battery storage are fully compatible with net metering in Pakistan. Your hybrid inverter manages three sources simultaneously: solar panels, battery storage, and the grid. During the day: solar charges battery + powers loads + exports excess to grid. During load-shedding: solar + battery powers loads, no grid interaction. At night: battery powers loads, and any shortfall is imported from grid. All net metering-approved hybrid inverters (GoodWe ES, Sungrow SH, Solis RHI, etc.) support this mode of operation.

Ready to Apply for Net Metering?

Calculate your system size first — then connect with an AEDB-registered installer in your city who handles the complete net metering application process.

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