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Produce Your Own Electricity and Sell It Back to the Grid: Solar Net Metering in Pakistan

It’s the first time in history that you can actually produce your own electricity and sell it back to the electricity grid. This opportunity comes from new government policies and incentives offered by Government of Pakistan which are designed to encourage consumers to invest in renewable energy like solar or wind power as well as reduce reliance on expensive and polluting fossil fuels such as coal and oil. Here’s how Solar Net Metering works, how you can take advantage of it and what you should consider before doing so.


Understanding Residential Solar Net Metering

As stated in the contract with the relevant DISCO., the owner of a RE facility will be compensated at a rate determined by the utility for any excess electricity that is supplied to the grid. The aim of net metering is to encourage consumers to invest in renewable energy, by providing them with a way to offset their energy costs, as well as earn money from their investment. In order for net metering to work, the consumer must have a meter that can track both their electricity consumption and production. Most importantly, net metering only applies to residential customers - businesses are not currently eligible for this program. If you're thinking about installing solar panels on your home, be sure to check out your state's net metering policies to see if you could benefit from this program.


How Much Can I Save with PV?

As stated in the contract with the relevant DISCO, a Net Metering customer will be billed at two different rates. One for energy consumed ‘on-net’ (energy consumed from the grid) and another for energy exported ‘to-the-grid’ (energy generated by the customer but not used on site). The difference in these two rates is called the ‘netting’ or ‘settlement’ rate. This rate is set by each utility company and will vary depending on many factors such as time of day, seasonality, etc. In most cases, customers are able to save money by netting their electric bills.


When Is The Best Time To Invest?

The best time to invest in a new business is when you have an idea for a product or service that you think people will want or need. Before you invest any money in your new business, you should do some research to make sure there is a market for your product or service. Once you have done your research and you are ready to start your business, you will need to develop a business plan. This will help you figure out how much money you will need to start your business and how you will make money. Once you have a business plan, you can start looking for investors. You may also want to consider taking out a loan from a bank or credit union.


What If I Don't Use All My Energy On Site?

If you're producing more energy than you need on site, you can sell the excess back to your utility company as stated in your contract. In 2015, the Pakistani government introduced a net metering policy for consumers who own or plan to set up renewable energy facilities. This policy allows users to generate electricity for their own use and sell any excess electricity back to the national grid. As a result, consumers can offset their electricity consumption during off-peak hours or when their RE facility isn't generating enough power to meet their needs. In some cases, consumers may even be paid for the extra electricity they generate!


Buying Or Renting The Equipment?

There are a few things to consider when you're trying to decide whether to buy or rent the equipment you need for your business. The first is whether you have the money to buy it outright. If you do, then it might be worth it to buy so that you don't have to worry about making monthly payments. However, if you don't have the money or you're not sure how long you'll need the equipment, then renting might be a better option. You can always upgrade or downgrade your rental agreement as your needs change, which gives you a lot of flexibility. Another thing to consider is whether you have room to store the equipment when you're not using it. If not, then renting might be a better option since most rental companies will store it for you.


What If I Have A Pool/Terrace/Carport/Roof?

If you have a pool, terrace, carport, or roof, you can produce your own electricity using solar panels and sell it back to the grid. The process is called solar net metering, and it's a great way to save money on your electric bill. Here's how it works: when you produce more electricity than you need, the excess is sent back to the grid, and you receive a credit for it. When you need more electricity than you're producing, you can draw from the grid. The net result is that your electric bill is lower than it would be if you were only drawing from the grid. And, as an added bonus, you're helping to green the grid by offsetting some of its demand with your own renewable energy.


Do I Need An Inverter?

If you're planning on using solar panels to power your home, you'll need an inverter. An inverter converts the DC electricity produced by your solar panels into AC electricity, which is what powers your home. Inverters are rated by how much power they can handle, so make sure you get one that's big enough for your needs. There are also different types of inverters, so be sure to do your research before you buy one. You'll also need to have your inverter installed by a qualified electrician.


What Size Of System Should I Get?

As stated in the contract with the relevant DISCO, In 2015 Government of Pakistan introduced the Net Metering Policy which is an electricity policy for consumers who own or plan to setup a Renewable Energy facility at their premises (Solar Power or Wind Power). Net Metering allows users 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 reduced utility bill or get paid for access energy exported to the grid. What size of system should I get?


How Can I Make Sure It’s Working Properly?

The installation of a net meter is completed by the utility company as stated in the contract with the relevant DISCO.

A customer who wants to install a renewable energy system at his/her premises can apply to the concerned DISCO for registration under net metering policy. The complete application form, accompanied by required documents, will be submitted by DISCO's authorized representative within 30 days of receipt of application.

The decision on registration will be communicated by the concerned DISCO within 60 days of receipt of complete application form.

A net metering agreement will be signed between registered customer andDISCO which will specify conditions of connectivity, metering arrangements, netting etc.


Advice For Getting Started

As stated in the contract with the relevant DISCO., the tariff for exporting energy shall be equal to or lower than the current retail price of electricity. In other words, users will be paid the same rate per unit of electricity that they would normally pay to consume. To get started, users need to simply apply for a ‘Declaration of No Objection’ (DON) from their local DISCO, which is a formal document declaring that the installation of your RE system does not violate any laws or regulations. Once you have your DON, you can proceed with installation and then submit an application to your DISCO for connection to the grid.

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