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Sell Solar Energy back with Solar Power Plant Net Metering Pakistan

By April 26, 2017September 3rd, 20208 Comments
Zorays Solar Net Metering

“Net metering” is the practice of running a meter for energy use in reverse when a user feeds energy into the system rather than drawing it out, and billing the user for the “net” amount of energy drawn. It’s used in home energy systems that are “on the grid,” which means that the home is still connected to the energy utility’s system and draws upon commercial energy production for convenience.

What is net metering and how does it work

Net-metering is a practice adopted by Network Utilities Worldwide that is extensively common in which the owners for the units of the distributed generation offset the consumption of electricity with the local generation from the grid. There has been a massive increase in the rate of prosumers with the generation of Solar Photovoltaic energy that is combined with the result of net-metering. Because of that, there has been a reduction in the income for the utilities of the network that occur at a fast pace.

Net Metering Concept

There are two types of net metering solutions that we offer under rooftop solar pv:

ON GRID System/ Grid Tied system; which is a future proof system once there is no load shedding. The Grid tied system is coupled with the grid and feeds excessive power in the grid which in turn gets credited in the consumer bill. The only draw back of this system is that it requires grid connectivity to operate i.e. it does not operate during load shedding. An Off-Grid UPS can be used to power essential loads during load shedding. It is anticipated that the load shedding will end completely in 2 years, a system with battery backup might make sense today but battery costs and its replacement after 3 years take the ROI period for an added 2 years.

HYBRID System: It is a Grid Tied with Backup system with both the functionality of an off-grid solar system and an on-grid solar system. Unfortunately, the market imagines the off-grid solar system with UPS functionality as hybrid because they conceive WAPDA as a secondary input source which is wrong. A true hybrid system is one which comprises of more than one renewable energy resource for selection or additive sharing.

what is net metering in solar energy advantage

One of the most exciting inventions by the world was the solar panels for capturing energy. For the past few years, there has been a rapid decrease in the price of solar panels. That is the reason why everyone bought them. Individuals worldwide realized how beneficial the solar panels had proven to be for their net metering. That is why they decided to purchase it and realized how excellent an investment it would make. The cost of Solar Panels to be installed in a single home depends upon its power.Because the solar panels can now be bought at the most reasonable price, almost all the people have access to it. They are using it towards their fullest capacity, by providing various benefits towards net metering.

The great advantage of net metering is convenience. A home energy system with net metering does not have to produce 100% of the power that the home needs. Also, with net metering it’s unnecessary to have much of the auxiliary equipment that is used with an off-grid system. The homeowner does not need storage batteries, for example. The energy being used by appliances is drawn from the commercial grid just as if no home energy system existed. Since net metering is a mechanism for the billing that might occur electrically, with the help of this, consumers are allowed to generate electricity of their own at any time of the day, month, season, or year.

Instead of waiting for it to be generated, It has proven to be exceptionally helpful for the sources of renewable energy such as solar and wind and also the sources that are non-dispatchable. In the atmosphere, there is no greenhouse gas emission when various methods absorb energy. The sun provides us human beings with more energy than we need. And using that energy, certain brands give out the internet to the individuals of their city or state. One of the many reasons why people from all over Pakistan prefer net metering is that it helps more in fewer energy losses. This helps us in getting the fastest connectivity of the internet. Not only for internet bills, but Net metering with solar energy has proven to have various substantial benefits all over the world. It is also helpful in providing job opportunities for individuals all over the world.

The system of the net metering has provided economic benefits all over the world for the energy system of solar, and this has created various opportunities for employment and jobs for the youth of Pakistan. It has created jobs for electricians, manufacturers, and installers, allowing them to work in the supply chain of solar energy. Today, thousands of young individuals have been employed due to the strong policies of net metering, and they have thoroughly allowed the market of solar energy to thrive.

Net Metering Pakistan Price vs. Benefit Analysis of Solar Net Metering Application in Pakistan

Solar Net Metering is the brilliant billing arrangement with your utility that allows unit to unit adjustment for any excess renewable electricity delivered to the grid. Okay! Set… you have a 3-Phase electric meter and ready for replacement with Wapda Net Metering from local DISCO via Zorays Solar Pakistan. How to proceed? Below, we will discuss Net Metering Pakistan Price vs. Benefit Analysis of Solar Net Metering Application in Pakistan.

Net Metering Pakistan Price Payback

How does net metering impact an electric consumer? Well, nobody understands Net Metering in Pakistan better than us. And why not? Net metering definition is something that a retail shop ore even an importer won’t tell you about. The usual pay back does not include the energy units accrued as the export of energy is prohibited until the approval of your net metering application. Even so, the nominal rate of bill deduction in case of electricity export to the grid is set @ weighted average of off peak and peak hour rate and will only occur after the batteries are instantaneously fully charged to maintain minimum backup against estimated load. Thus, the usual pay back time is bound to increase with these kinds of nepra net metering rules. More so, in absence of batteries, the unit to unit adjustment occurs for both off peak and peak hour rates but for peak hour unit adjustment there is some infrastructure cost that the client still has to bear.

NEPRA Net Metering Rules and electricity rate in Pakistan

National Electric Power Regulatory Authority recently presented their Net Metering facility with alternate energy development board aedb approving certain vendors only after these fulfilled stipulated criteria. Conservation is the lowest cost alternative (net solar) to high utility bills. If everyone reduced their consumption by 20 percent, there would be 20 percent more money staying in your pocket. The cheapest kiloWatt is the one you don’t have to go out and purchase.

Likewise, it could be equally vocal to get your free energy and be able to sell the excess back at a very lucrative rate. National Electric Power Regulatory Authority recently presented their “net metering” program to the public of Islamabad, Rawalpindi & Lahore. This netmetering plan credits customers for the electricity they produce in excess of the electricity they are consuming after each three months.

Compare this netmetering plan to paying a monthly utility bill and getting no return on investment. Net metering is a billing arrangement by which a net meter (Bi-directional meter) is installed at any Grid Tied Renewable Energy system (Solar and wind power system) which import electricity when production from solar system is less than demand and it exports electricity when electricity production through solar system is more than the demand and at the end of month the Utility company sends the monthly bill of the net meter and this gives a saving to consumer who sell their excess electricity and benefit to Utility of having solar electricity for other consumers to use when Renewable system exports electricity.

This is especially useful because a home energy system typically doesn’t produce its energy at convenient times. A solar system, for example, has maximum production capacity during the daylight hours, but most energy use happens at night. That’s when artificial lighting is needed. It’s also when people are usually at home. In the winter months, it’s the time of the greatest energy cost for heating the home. With an on-grid system using net metering, the system can “sell” energy to the utility during the times of high production and low use, for a credit that can be used to “buy” energy back from the utility during the times of low production and high use.

Remember electricity unit rate in Pakistan 2019 have inflated by more than 5% than the preceding year this typically highlights the positive economic effect of Net Metering with solar energy. While keeping in view the grid parity since the electricity rate in Pakistan has never remained constant, a net metering system feeds power from the home production system into the grid, which the utility can sell to other customers. During times when the home is producing energy (usually from a solar or wind power system), and more energy is being fed into the grid than taken from it, the utility’s accounting system “pays” the customer for this energy in the form of a credit that can be used to buy energy from the utility.

During times when more energy is being drawn from the grid than added to it, the credit is reduced to pay for the energy consumed. At the end of the month, if more energy has been consumed than produced by the customer, the utility charges the customer for the difference. If more energy has been produced than consumed, the utility pays the customer for the difference using energy meter –– usually at a much lower rate.

The average differential rate for electricity applied is averaged @ Rs. 17 per unit for Residential buying, @ Rs. 14.2 for Commercial buying and @ Rs. 9.3 for Industrial buying as per incentivized net metering policy and Wapda unit price in Pakistan. Kindly note that net meter reading is performed on compliant equipment only and thereby it is discouraged to use Gas Generators or Diesel Power Generators to be attached for this purpose. Hence, do not buy anything that sells cheap in the market. It shall go waste.

Application & Process with Alternative Energy Development Board

Net metering, despite the name, does not require any special equipment. Electric meters are generally configured to be able to run in either direction. To implement net metering, an electric utility would need only to make use of accounting procedures and appropriate policies. Zorays Solar Pakistan provides Net Metering Consultancy to avail DG License from NEPRA. The below mentioned points covers our services:

  1. Completion and scrutiny of all Nepra Schedule’s along with Diagrams.
  2. Approval of case from LESCO & IESCO.
  3. Inspection of site and satisfactory reports after inspection.
  4. Approval & execution of all reports related to Application.
  5. Follow-up and obtaining of DG License from NEPRA.

In pursuant to the AEDB (Certification) Regulations, 2017 AEDB has provisionally certified Zorays Solar Pakistan as vendor/installer/service provider for net metering installations for the benefit of the consumers under its net metering program. After meeting the tough stipulated criteria Zorays Solar Pakistan will manage its Sales and After Sales activities in Pakistani markets and is seeking for sole distributors in Peshawar, Islamabad and Karachi for the moment.

First of all, a request is filed by Zorays Solar on behalf of the applicant to DISCO for information about net metering in shape of a net metering application. The Distribution company (let’s say Islamabad Electric Supply Company, ‘IESCO’) is liable to provide information to the applicant and furbish authority’s approved documents free of charge. IESCO has designated the authority that sanctioned the current electric connection to act as focal person in the field. Director planning at HO is the focal person at IESCO HO level.

This is a list of electric supply companies (DISCOs) in Pakistan:

  • Faisalabad Electric Supply Company (FESCO).
  • Gujranwala Electric Power Company (GESCO).
  • Hub Power Company.
  • Hyderabad Electric Supply Company (HESCO).
  • Sukkur Electric Power Company.
  • Islamabad Electric Supply Company (IESCO).
  • K-Electric- old company name was Karachi Electric Supply Company.
  • Bahria Electric Supply Company (BESCO).

While persuing nepra net metering application bear in mind that you can only accrue points and use them wisely for adjustment and can not cash back the negative bill. That is why, You can not gross beyond 1.5 times your sanctioned load. Like, for example, do not rate it as an investment opportunity where you can export electricity to make bucks. But if you can let us design your system size wisely where any accumulated points in Winters are beneficial in Summers, then you can make the best out of this technique. Here are few common problems encountered with net metering process and meter configuration:

  1. requirement for the change of name,
  2. correction of name on electric bill,
  3. 3 phase connection unavailability,
  4. reluctance to get 3 mandatory Earthing bores done by the customer
  5. phase indifference despite 3-phase connections.

Please accept that it in the past it was client’s prerogative to sought his/her solar net metering application form directly with relevant DISCO under past Nepra net metering regime. However, only approved aedb vendors who have logins for Step Solar Robotics online application platform muchlike Zorays Solar Pakistan shall facilitate with one-window solution inlcuding a line diagram and necessary certificate provision for Inverter’s compatibility for Wapda net metering. Carefully, we optimize your unit load with the estimated net metering credits, where units accumulated over an year / 1500 units = System Size in Kilo Watts. Remeber, Zorays Solar Pakistan is brining you net metering technology in Pakistan and on the client’s optional wish, we help them speedup the process at an addition 1.5 Rs per Watt mentioned in the total quote which includes Performa submission, presence at time of inspection, detailed followup of the application till final approval of the case.

Net Metering Rules and Net Metering Agreement:

Following to which an application is submitted by Distribution Grid (National Transmission Distribution Centre) to DISCO along with necessary documents for net zero metering.

List of Documents include:

  • Completed application form as per Annex-II
  • Attested copy of CNIC
  • Copy of latest electricity paid bill
  • Technical specifications of inverter
  • Technical specifications PV
  • Single line diagram
  • NOC by Electric Inspector
  • The DISCO then acknowledges its receipt and informs Zorays Solar Net Metering Team (the applicant) if application is complete in all respects. If any information is missing, the DISCO identifies and informs Zorays Solar Net Metering Team (applicant) as we work toward its rectification. (In case of missing Documents or information, or additional requirements, Zorays Solar Net Metering Team shall provide the same to DISCO.)

The DISCO also performs initial review to determine if applicant qualifies for DG or may qualify subject to additional requirements. The parameters like transformer loading limit, allowed percentage of RE components mix and feeders identified for RE or similar other policy level factors may also be a part of review parameters. In case DG is technically not feasible, DISCO shall inform Applicant with reasons on completion of review.

If satisfied that applicant qualifies as DG, DISCO advises applicant to physically install the DG up to interconnection point by DISCO approved PV installer, if not already installed, but not to connect with DISCO. DISCO may maintain a list of approved qualified installers (including Zorays Solar) and applicant may be provided with that list.

In the next phase, the applicant gets his installation checked by a licensed electrical supervisor. The Electric Inspector grants NOC (No Objection Certificate). Exact scope of inspection by Electrical Inspector is little hazy and Zorays Solar Net Metering Team takes care of that on the behalf of its esteemed customers.

Applicant applies to Electric Inspector for his inspection. Application shall enclose report by licensed survivor (Licensed by Electric Inspector) as a part of request. Zorays Solar Net Metering Team then coordinates with get the installation checked and certified OK by the electrical inspector from Power Utility. The electric Inspector, having satisfied himself about safety and other parameters as per his mandate, may issue clearance certificate /letter or ask for rectification of identified defects. Having satisfied the electric inspection, Zorays Solar Net Metering Team obtains clearance certificate by submitting an NOC by Electric Inspector.After completion of installation (residential, commercial, industrial), applicant invites DISCO for technical inspection against net metering tariff. With the request applicant submits the tech report prepared by Approved installer and a certificate issued by him that the DG facility design and installation meets all requirements of para 9 of the regulation.

At this stage, a pre-constituted team of DISCO personnel visits site for tech inspection in coordination with applicant. Mandatory design of aedb net metering system and operating requirements of DG as per Para 9 of the regulations must be verified and statement to this effect included in report by DISCO technical team. If DISCO becomes satisfied that applicant qualifies as DG, DISCO and applicant shall sign interconnect agreement. DISCO shall invite Applicant for Interconnect, and send a copy of interconnect agreement to Registrar, NEPRA. Send connection charges as a wapda demand notice up to interconnection point including metering installation (customer prepays to Zorays Solar, if applicable, in case of change of meter).

If bi-directional meter is not available with DISCO, applicant may procure their own meter via Zorays Solar Quota Based available on Wapda Demand Notice (our net metering lesco direct clients get FREE Net Meter) and install after approval by DISCO. (Applicable charges to be notified at time of service level agreement between Zorays Solar and its client.)

Usually, the electricity meter cost or the Reverse Net Meter Price is borne by the client according to the latest developments. In case, the establishment is a new site the client will have to get a regular meter installed before it can be replaced with the one with net metering option (Rs. 16,000 in open market or adjustment). In case of residential, we supply whole current based electric meters by Creative Technology (an approved vendor by WAPDA). In case of Industrial application, we supply current transformer based net meter (assuming that the industry already has current transformers in place, you need to just tell us about the CT ratios and number of CTs). We offer this Bi-Directional Energy Meter Free-of-Cost to our clients. The Cable from Inverter to Mains Distribution board is intended same as the house wiring; hence, excluded from the quote. One of the necessary expenditure to be borne by the client at the time of application submission for net-metering is the provision of 4 core 35 mm^2 double insulated wires for the home and selectively bigger cross-secitioned wire for the industry. Kindly, also note that Neutral Cable is separately attached to net metering meter in such a case.

For Zorays Solar Clients of net meter grid connect solar systems, the Cost of Net Meter is zero. We do not charge a single Rupee to get your existing meter changed with bi-directional reverse meter. However, if your want to buy one, we charge you exact price of the demand notice somewhere around Rs. 11500/- only as a promotional price towards WAPDA net metering initiative. In case of Bahria Electric Company, the cost is Rs. 25,000/- For KElectric it is somewhere around Rs. 50K.

Together with Creative Electronics, both our companies are eyeing to publish R&D work in this regard and are ready to give pride service training on these top notch and state-of-the-art inverters and meters around net meter grid connect solar systems under Nepra net metering regime. We bring intelligent energy management system and its monitoring system provides the end user up to an additional 30% savings on your utility bills as compared to readily available inverters from Hall Road or College road. The ROI ranges from 14 % (industrial application) to 24 % (residential application) easily.

Next, the installation of net metering solar systems and commissioning is done by the DISCO side of the proposed facility interconnection. Actual net metering shall commence only after grant of license by NEPRA. Net Metering Licensing in Pakistan is what Zorays Solar feels after its solar pv equipment installation.

The DISCO forwards application to NEPRA for grant of license as per Schedule III along with regulatory documents para (2) alongside interconnect Agreement along with its encl (Qty 7).

Application as per Schedule IV and Evidence of license fee deposit if applicable, Schedule V, Affidavit as per Schedule VI.

Finally, the NEPRA issues license at its according to Schedule VI to the applicant and after this grant of DG license Zorays Solar activates netmetering in coordination with DISCO and you officially start selling excess energy.

With free installation, state-of-the-art online monitoring and industry-leading guarantees, there’s never been a better time to go solar with our net metering facilitation desk. Reap net metering benefits with us! Our Lisence: B/3/1/Net Met/ZSPL/17/35 has been renewed to B/3/1/Net Met/Zorays/18 for solar net metering in Pakistan.

More recently, there has been an update in the schedule four of net metering charges as follows,

This encourages only direct vendors of NEPRA and AEDB to have a strong commitment to net metering and shuns all indirect doors of corruption and customer blackmailing.

Get your net metered solution! Our company license: B/3/1/Net Met/18/Zorays, previously B/3/1/Net Met/ZSPL/17/35 for net metering in Karachi, net metering Islamabad, lesco net metering.

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