What is Net Metering? A Detailed Overview
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Understanding the concept of net metering is essential for residential and commercial solar system owners. Because, from application to initiation, everything is quite technical.
Solar systems convert sunlight into electricity. The amount of sunlight during the day is unlimited; solar PV cells use this continuous supply to produce substantial energy. However, a house or building electricity consumption requirement is limited. That’s where net metering allows solar system owners to export extra electricity their PV panels produce to the grid. And in exchange, they get credit from the utilities.
In this article, you will find all the information regarding net metering, its components, and the application process.
Let’s get started.
Net metering is a billing method for electricity that enables owners of solar power systems to contribute any excess energy they generate back to the grid.
In simpler words, solar power system enables you to generate your own power while giving you the benefit of passive income.
Homes and buildings that are net-metered have their electricity meters run backward to give credit for the electric power consumed at night. The excessive power generated by the solar system during the day is transferred to the grid in exchange for credit.
Solar panels generate power in the daylight, while at night, either battery storage or grid runs the appliances in a house or building. Two types of solar power systems allow net metering; on-grid and hybrid. The on-grid solar power systems are directly connected to the grid and supply excess energy to the utility company. However, hybrid solar power systems use batteries to store a certain amount of electricity while sending the extra energy back to the grid.
At night, when solar panels stop producing electricity, the solarized property starts consuming electricity units from the grid. If your house has an on-grid solar system, the energy your home gets at night will directly come from the electric grid. However, in the case of a hybrid solar system, you can store some electricity in the batteries and use it during nighttime. If the battery drains, electricity from the grid is still available.
Any amount of power supplied to the grid is distributed to the neighboring population to meet their energy needs. The utility company to which the electricity is sold gives the solar system owner credits or compensation.
Net metering is beneficial in many ways, some of which are as follows;
The world is going green by eliminating fossil fuel consumption for energy production. Solar power ensures a greener future with zero net GHG emissions.
Also Read: Residential Solar Energy Systems in Pakistan - Types & Capacity
Yes, net metering is available in Pakistan. In Pakistan, the net metering regulations were set off in 2015, allowing distribution companies (DISCOs) to purchase solar-generated electricity from consumers and net them off the electricity units consumed through the grid.
According to Pakistan's Net Metering Policy, consumers with a 3-phase connection are eligible for net metering. The net metering facilities can be availed at a smaller scale, from 1 KW to 1 MW.
You only have to do the following to get started with net metering in Pakistan.
Although all the steps mentioned above are simple and handy, you need professional assistance from a solar power service provider to guide you through the whole process.
And if you want to apply yourself, here are the details on applying for net metering in Pakistan.
NEPRA, The National Electric Power Regulatory Authority of Pakistan, has mentioned the distributed generator (DG) requirements in its regulatory policy. Applicants must be eligible according to the specific DG requirements. Qualified candidates can apply for net metering at the applicable DISCO office.
The applications are then assessed and approved by DISCO, and the company will notify the applicant about the processing and completion of their application. The whole process can take up to 5 working days.
Suppose the applicant submits an incomplete application that needs to include any required documentation. In that case, the distribution company will contact the applicant to provide missing details or documents within seven working days of being given the notice.
Once DISCO approves the application, it will take around 20 days to be reviewed. After the final review, the applicant will be informed whether their application is accepted or rejected.
Also Read: State Bank of Pakistan's Solar Financing Scheme
For Accepted Applications
Agreement
Once the DISCO accepts the net metering application, the next step is signing an agreement to be a DG is the next step, and this will take ten working days after being approved.
License
After signing the contract, the DISCO will notify NEPRA about the applicant’s approval, and the agreement will be sent to NEPRA to generate a DG license. This might take seven working days.
Connection Charge Estimate
The DISCO is responsible for evaluating the interconnected amenity and ensuring it is up to the mark for net metering. DISCO will suggest to the DG to modify or upgrade the network at any time. A CCE or connection charge estimate will be provided to the DG to modify the network. The payment must be submitted to the applicable bank within 20 days.
However, the network that does not need any upgrade will receive a CCE.
Interconnected Facility
Once the CCE payment is paid and NEPRA’s approval, the DISCO will provide installation and commission facility to the DG to complete the project.
The DG must pay all-inclusive costs related to the interconnected amenities, including the charges for meter installation. Moreover, DG has to pay for the upgradation of amenities suggested by DISCO.
The fee payable depends on the applicant size of the DG amenity. The details are as follows.
Net metering is a billing mechanism in solar power generation where excessive energy generated by the solar system is distributed to the grid in return for credits. Net metering in Pakistan is small-scale for projects under 1 KW to 1 MW capacity. The application process is quite simple, but if you need clarification, you can contact an authentic solar power service provider for further assistance.
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Understanding the concept of net metering is essential for residential and commercial solar system owners. Because, from application to initiation, everything is quite technical.
