How Net Metering Works in Pakistan – Complete Guide 2025

With rising electricity prices in Pakistan, more people are installing solar systems and asking one key question: how does net metering work? Net metering allows you to reduce your electricity bill by exporting extra solar units to the grid and using them later. In 2025, net metering remains one of the most powerful ways to make solar affordable and profitable.

This guide explains how net metering works in Pakistan, its full mechanism, savings estimation, investment cost, benefits, and how to take care of your system in simple words.

What Is Net Metering in Simple Words?

Net metering is a billing system where your solar system is connected to the national electricity grid. When your solar panels produce more electricity than you use, the extra units go to the grid. When your solar production is low, you take electricity back from the grid.

Your electricity bill is calculated on net units consumed.

This is why people ask:

• how does solar net metering work

• how does net metering work with solar

• how does my solar meter work

How does Net Metering Work in Pakistan? (Full Mechanism)

Let’s understand how net meter works step by step:

1. Solar Generation

Your solar panels generate electricity during sunlight hours.

2. Usage Priority

Your home or business uses solar electricity first.

3. Export to Grid

If solar production is higher than usage, extra units are exported to the grid.

4. Import from Grid

At night or cloudy times, electricity is imported from the grid.

5. Bi-Directional Meter

A special net meter records:

• Units sent to grid

• Units taken from grid

6. Monthly Billing

Your bill shows:

• Units imported

• Units exported

• Net payable units

This explains how does net energy metering work in real life.

How Does Net Metering Work With Time of Use (TOU)?

In Pakistan, many connections have Time of Use tariffs:

• Peak hours: Higher electricity price

• Off-peak hours: Lower electricity price

Solar electricity generated during daytime (off-peak) is credited, while consumption during evening peak hours is charged higher.

So when people ask how does net metering work with time of use, the answer is:

• You still save money

• Daytime exports reduce expensive evening imports

Bill Price Saving Estimation (2025)

Residential Example

5kW solar system with net metering:

• Monthly generation: 550–650 units

• Average unit price: PKR 55–65

• Monthly saving: PKR 30,000–40,000

• Yearly saving: PKR 360,000–480,000

Commercial Example

20kW system:

• Monthly generation: 2,400–2,700 units

• Monthly saving: PKR 140,000–180,000

• Annual saving: PKR 1.6–2.1 million

This is why many businesses search how solar net metering works before investing.

Investment and Pricing Estimation Of Net Metering (2025)

Solar System Cost

• 3kW system: PKR 550,000 – 650,000

• 5kW system: PKR 850,000 – 1,050,000

• 10kW system: PKR 1.7 – 2.1 million

Net Metering Cost

• Net meter + application + approvals: PKR 80,000 – 150,000

Payback Period

• Residential: 2.5 – 4 years

• Commercial: 2 – 3 years

After payback, electricity is almost free for 15–20 years.

Benefits of Net Metering in Pakistan

1. Huge Bill Reduction

Net metering directly reduces monthly electricity bills.

2. Protection From Tariff Hikes

When units are credited, future price increases hurt less.

3. Grid as Virtual Battery

No need for expensive batteries for most users.

4. Higher Property Value

Homes with net metering sell faster and at better prices.

5. Environment Friendly

Less fossil fuel usage and lower carbon footprint.

How to Take Care of a Net Metering Solar System

Proper care ensures long life and maximum savings.

Solar Panel Maintenance

• Clean panels every 15–30 days

• Dust reduces output by up to 20%

Inverter Monitoring

• Check inverter display weekly

• Watch for error alerts

Electrical Safety

• Ensure proper earthing

• Use surge protection devices

Annual Inspection

• Tight wiring

• Check mounting structure

• Verify net meter readings

Good care ensures how does solar meter work efficiently year after year.

Common Questions People Search (FAQs)

How does net metering work with solar panels?

Solar panels generate electricity, excess is exported, and net units are billed monthly.

How does my solar meter work?

It records both imported and exported electricity units.

Is net metering allowed in Pakistan in 2025?

Yes, net metering is legal and regulated by NEPRA.

Does net metering work during load shedding?

No, standard on-grid systems shut down during outages unless hybrid backup is installed.

Can I earn money from net metering?

Credits reduce bills but cash payments are usually not provided.

Final Words

Understanding how net metering works in Pakistan helps you make smarter solar decisions. In 2025, net metering remains one of the best financial tools for homeowners and businesses to control electricity costs, recover investment quickly, and enjoy long-term savings.