Net metering is the arrangement that lets a home with solar panels send surplus electricity back into the national grid and receive credit for it. It is the single biggest reason a grid-tied solar system in Pakistan can cover far more than the electricity you happen to be using while the sun is up.
This guide explains how it works, what you need in order to qualify, and how to think about it when sizing a system.
What net metering actually does
A house without solar draws every unit it consumes from the grid. A house with solar generates its own electricity during daylight hours, and its consumption and generation rarely line up. Around midday a typical home produces more than it needs. After sunset it produces nothing.
Net metering resolves that mismatch. A bidirectional meter records two numbers instead of one:
- Imported units — electricity you drew from the grid
- Exported units — surplus electricity your system sent to the grid
Your bill is settled against the difference between the two rather than against your gross consumption. In effect, the grid acts as a credit ledger for the surplus your roof produces during the day.
What you need to qualify
Requirements are set by NEPRA and administered by your local distribution company, so the exact paperwork varies by region. In broad terms you will need:
| Requirement | Why it matters |
|---|---|
| Three-phase connection | Net metering is granted on three-phase supply; single-phase homes usually need an upgrade first |
| A grid-tied inverter | The inverter must be capable of synchronising with and exporting to the grid |
| Bidirectional meter | Installed by the distribution company to record import and export separately |
| Licence application | Submitted to your distribution company, with a NEPRA-issued generation licence |
The application is typically handled by your installer rather than by you directly. Ask about it before you sign anything, because a system installed without net metering in mind can be expensive to retrofit.
How it changes the way you size a system
Without net metering, there is little point generating more than you can use or store at any given moment — surplus production is simply wasted. With net metering, daytime surplus retains value, which changes the calculation in two ways.
First, a larger array can make sense even if your daytime consumption is modest, because the excess is credited rather than lost.
Second, batteries become a question of resilience and night-time usage rather than a requirement for capturing surplus. If your goal is purely to reduce your bill, net metering does much of the work a battery would otherwise do. If your goal includes backup during load shedding, a battery is still worth considering.
Terms change, so check before you commit
Buyback rates, settlement periods and eligibility rules for net metering in Pakistan have been revised several times, and further changes are under discussion. Treat any specific rate you read online — including in older articles — as a starting point for a question to your distribution company, not as a guarantee.
What has stayed consistent is the underlying principle: a grid-tied system sized sensibly against your actual consumption is the most economical way for most Pakistani households to reduce an electricity bill.
Work out what your roof can produce
The value of net metering to you depends on how much your roof can actually generate, which depends on its size, orientation and shading. Enter your address below and we will measure your roof and estimate production for your specific property.
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