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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