This document discusses Pakistan's net metering policy and regulations. It defines key terms like distributed generator, distributed generation facility, and interconnection point. It outlines the application process for net metering, including submitting an application, technical reviews, signing agreements, obtaining licenses, and commissioning. It also covers technical requirements, responsibilities for costs, inspection requirements, billing procedures, and tariffs. The net metering policy allows consumers who generate surplus electricity from solar or wind to supply it to the grid and receive credits to offset future electricity purchases.

1. Net Metering

2. Net Metering Concept-Energy Policy 2006
Reference: Renewable Energy Policy by AEDB-2006
Policy Implication: Applicable for captive & grid spillover projects
Net Metering: Supply of surplus electricity to the power utility while at other times drawing electricity
from the utility
Energy Rate for Capacity > 1 MW: If energy supplied by the company to the utility (DISCO) is greater than
energy procured, then company (producer) will be paid at tariff equal to the average energy cost per kWh
for oil-based power generation (as determined by NEPRA for GENCOs/IPPs over the applicable quarter of
the year) less 10%.
Energy Rate for Capacity ≤ 1 MW: If energy supplied by the company to the utility (DISCO) is greater than
energy procured, then company (producer) will be paid at the applicable retail tariff (e.g., industrial,
commercial, or residential rates)
Banking Concept: Rolling account on banking concept will be maintained on monthly basis for energy
units, will be reconciled at year end

3. NEPRA Net Metering Regulations-2015
Definitions
 Distributed Generator: A DISCO's 3 phase 400V or I I kV consumer (domestic, commercial or industrial)
and who owns and/or operates the Distribution Generation Facility.
 Distributed Generation Facility: A facility set up by a Distributed Generator using Solar or Wind energy
resource for generation of electricity up to I MW
 Interconnection Facilities: The equipment, including, without limitation, electrical lines or circuits,
transformers, switch gear, safety and protective devices, meters or electrical plant, used for
interconnection services.
 Interconnection Point: The point where the metering, installation and protection apparatus of the DG
is connected to the Distribution System of DISCO
 Net Energy: A balance (positive or negative) of the kWh generated by DG against the kWh supplied by
DISCO at the end of Billing Cycle

4. NEPRA Net Metering Regulations-2015
Net Metering Application Procedure
1) Submission of application to DISCO on prescribed form (Schedule II) of NEPRA with Certificate by
Electric Inspector for proposed DG Facility.
2) Review of application & technical feasibility by DISCO inspection team & submission of report.
3) Review and approval of interconnection facility
4) Agreement b/w DG & DISCO as per schedule-I of Regulation
5) DISCO will forward a copy of the Agreement to the NEPRA
6) Application filled by DG to authority for grant of License as per Schedule-III of Regulation.
i. Agreement
ii. Application by DG for the exemption from the requirement of being registered as a company under
the Companies Ordinance, 1984 as per Schedule-IV
iii. Evidence of deposit of fee as specified in Schedule-V
iv. Affidavit(to abide by NEPRA rules & regulations) by DG as specified in Schedule-VI.
7) DISCO will forward Generation License application
8) Execution of agreement

5. NEPRA Net Metering Regulations-2015
Net Metering Application Procedure-Continued
9) Issuance of the Connection Charge Estimate to the Applicant by DISCO for the proposed
interconnection facility up to the Interconnection Point .
10) Some important pre-requisites:( Before Parallel operation/Synchronization)
a) Load flow study (on PSSE software) all DG having installed capacity > 500 kW
b) Load flow study (FDRANA) all DG having installed capacity <500 kW & >10kW
c) Exemption for interconnection study for DG having capacity ≤ 10kW .
d) If installed capacity of DG becomes ≥ 80% of installed transformer of DISCO, then new agreement
will be signed and cost will be incurred by DG for new transformer.
e) DISCO inspection committee will inspect DG and will issue a safety certificate.
f) Mandatory safety precautions/features. (anti islanding protection, grounded/ earthed.
g) Lightning arrestors, Manual isolator switch with locking facility
h) A single bi-directional service connection meter to measure import and export (kWH)
11) Issuance of generation license
12) Issuance for the approval of synchronization/commissioning after upon satisfaction of DISCO
13) Synchronization/commissioning of DG and issuance of synchronization certificate by DISCO

6. NEPRA Net Metering Regulations-2015
Voltage and Frequency Range: A variation of ±5% and ±1% is permissible to the nominal voltage and
frequency respectively
Interconnection Facility Financing: A DG shall be responsible for all costs associated with Interconnection
Facilities up to the Interconnection Point including metering installation
Periodical inspections
i. Meter inspection & Inverter functionality-6 monthly
Term of the agreement
i. 3 years from date of commissioning
ii.After expiry of initial term, will be renewed for next 3 year term
Rights & Obligation of DISCOs: Limitation or disconnection of generator incase of
i. Fault
ii.Routine maintenance- 30 days prior notice
iii.Non compliance of regulation
iv.Termination of agreement

7. NEPRA Net Metering Regulations-2015
Billing procedure
i) The consumer shall receive a monthly net import/export bill.
ii) The meter reader has to capture import & export energy.
iii) In case of net import bill, the DG shall be billed for the net kWh in accordance with applicable tariff
iv) In case, the energy exported to DISCO is more than the import, the net kWh shall be credited against
DG next billing cycle for future consumption. After continuous credit of three months DG is liable to
claim energy cost from DISCO, provided that where the DG is to be paid, the kWh in a month will be
charged at the tariff of that respective month
v) The tariff payable by DISCO shall only be the off-peak rate of the respective consumer category of the
respective month and other rates such as variable charges for peak time, fixed charges, fuel price
adjustment, duties / levies will not be payable by the DISCO