What Is Net Metering

What Is Net Metering in Pakistan? A Complete 2025 Guide

December 09, 20256 min read

If you searched “what is net metering” or “what is net metering in solar system” and you are not a technical person, here is the simplest explanation:

"Net metering is a billing system where your solar panels send extra electricity to the national grid during the day, and in return, the government reduces your monthly bill. You only pay for net energy the difference between the units you import from the grid and the units you export."

This means your solar system becomes a kind of virtual battery, storing extra units with your electricity company instead of physical batteries.

In Pakistan, net metering is approved by NEPRA and all DISCOs (KE, LESCO, FESCO, GEPCO, MEPCO, IESCO, PESCO, etc.) follow the same process. It is the most effective way to reduce electricity bills permanently.

What Exactly Is Net Metering? (Simple Definition)

Net metering is a two-way electricity measuring system that allows solar users to:

  • Use solar power during the day

  • Send extra units to the grid

  • Get credit back on their electricity bill

The special net meter (also called a PV meter) records both:

  • Units imported from the grid

  • Units exported to the grid

At the end of the month:

Bill = Imported Units – Exported Units

This is why people ask “what is net metering for solar” — because it instantly reduces bills without expensive batteries.

Diagram of how net metering works in steps

How Net Metering Works in Pakistan (Simple 4-Step Process)

Here’s how it works even if you're not familiar with solar systems:

1. Solar panels produce electricity

Your solar panels generate power using sunlight.

2. Home uses solar power first

Appliances run directly on solar energy.

3. Extra energy is exported to the grid

If solar produces more than your usage, extra units go to the national grid through the net meter.

4. You get credit on your bill

The exported units are deducted from your monthly consumption. If you export more, the units are carried forward for next month.

This is the core meaning behind all keywords like:

  • what is net energy

  • what is a pv meter

  • what does net metering mean

Benefits of Net Metering in Pakistan (2025 Updated)

1. Huge Reduction in Electricity Bills

Most homes save 60–90% every month.
Businesses save up to 70% depending on usage.

Example:
If a home’s bill is Rs. 40,000 monthly, net metering can reduce it to Rs. 5,000–10,000.

2. No Need for Batteries

Net metering replaces the need for physical batteries by using the grid as virtual storage.

This reduces system cost by 30–40%.

3. Fast Payback Period

Most systems recover their investment in:

  • Homes: 3–4 years

  • Businesses: 2.5–3.5 years

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

4. Protection Against Price Hikes

Electricity tariffs in Pakistan increase regularly.
Net metering protects you because you rely on solar, not expensive grid units.

5. High Property Value

A home with a net-metered solar system sells faster and at a premium because monthly bills are very low.

6. Zero Maintenance Net Meter

Net meters need no servicing. They are digital, sealed, and extremely reliable.

7. Eco-Friendly

Every 5kW solar system reduces carbon emissions equal to planting 200+ trees annually.

Net Metering Costs in Pakistan (2025 Estimate)

Net metering requires:

  • Application

  • Inspection

  • Meter installation

  • Documents approval

Typical Total DISCO Charges:

PKR 10,000 – 25,000
(depending on city and electricity company)

These charges are one-time only.

Solar System Prices With Net Metering (Pakistan – 2025 Updated)

Here is a realistic cost breakdown for homes and small businesses:

Custom HTML/CSS/JAVASCRIPT

These include:

  • Tier-1 solar panels

  • Hybrid/on-grid inverter

  • Wiring, breakers, protections

  • Installation

  • Complete net metering documentation

How Much Can You Save Monthly? (Real Examples)

5kW Solar System

  • Monthly production: 600–750 units

  • Savings: Rs. 15,000 – 22,000

10kW Solar System

  • Monthly production: 1,200–1,500 units

  • Savings: Rs. 35,000 – 50,000

14kW Solar System

  • Monthly production: 1,800–2,200 units

  • Savings: Rs. 55,000 – 75,000

Payback Period Example (10kW System)

  • System Cost: Rs. 1,200,000

  • Monthly Savings: Rs. 40,000

  • Annual Savings: Rs. 480,000

Payback: 2.5 – 3 years

After that, the electricity is practically free.

Who Should Apply for Net Metering?

Net metering is ideal if:

  • You have rooftop space

  • You use 500+ units monthly

  • You own your property

  • You want long-term savings

  • You want a clean energy solution

Perfect for:

  • Homes

  • Factories

  • Schools

  • Shops

  • Restaurants

  • Offices

Net Metering Requirements in Pakistan

To qualify for net metering:

  • You need a 3-phase meter

  • Your system must be installed by an approved company

  • All components must be NEPRA-compliant

  • Panels and inverter must support on-grid compatibility

FAQs About Net Metering in Pakistan (2025)

1. What is net metering in simple words?

It is a billing system where solar users send extra electricity to the grid and get credit on their bill.

2. What is a net meter?

A net meter is a digital two-way electricity meter that measures both imported and exported units.

3. How long does approval take?

Usually 20–45 days depending on DISCO.

4. Can I run ACs on a net-metered system?

Yes. With a properly sized inverter and panels, ACs run easily.

5. Can net metering remove my entire bill?

Yes. If your exported units equal (or exceed) your consumption, the bill becomes almost zero.

6. Do I need batteries?

No. Net metering works without batteries.

7. Does net metering work in load-shedding?

Only if you install a hybrid inverter.
On-grid inverters shut off during load-shedding.

Conclusion

Net metering is one of the best investments in Pakistan today. It’s simple, effective, and the fastest way to cut electricity bills permanently. With rising energy prices, installing a solar system with net metering provides long-term savings, fast payback, and complete financial control over your energy consumption.

This guide explains everything from what does net metering mean to the full cost breakdown helping anyone understand net metering without technical knowledge.

At HocMaterial, we’re passionate about simplifying the construction journey for homeowners and contractors across Pakistan. As the country's first marketplace dedicated to construction services, we make it easy to find trusted professionals for any project, big or small. Our mission is simple: connect you with reliable contractors through tailored solutions like Facebook and Instagram ads, delivering leads directly to the experts you need. We believe in building a community where trust and efficiency thrive, helping contractors grow their business while making the construction process stress-free for everyone involved.

HocMaterial

At HocMaterial, we’re passionate about simplifying the construction journey for homeowners and contractors across Pakistan. As the country's first marketplace dedicated to construction services, we make it easy to find trusted professionals for any project, big or small. Our mission is simple: connect you with reliable contractors through tailored solutions like Facebook and Instagram ads, delivering leads directly to the experts you need. We believe in building a community where trust and efficiency thrive, helping contractors grow their business while making the construction process stress-free for everyone involved.

Back to Blog
HOCM hocmaterial logo png

Hub Of Construction Materials (HOCM) is the most trusted marketplace in Pakistan, developed by Exter Marketing to make a significant impact in the construction industry of Pakistan.

Follow Us

Get In Touch

HJ centre 3rd floor office no 24. pizza crust building near student biryani university road

Built by Exter Marketing | Powered by Exterly.io