How Net Metering Works: Benefits and Process

22 August 2025 | 2 min read

Net-metering is one of the major advantages of having a solar energy solution. While solar energy systems themselves provide a lot of savings on your energy bills and utility bills, and provide consumers with reliable energy, net-metering is a process that takes this savings aspect several steps further, allowing consumers to save even more on their utility bills. This is why, a good majority of consumers in Pakistan are aware that solar energy solutions provide something called net-metering, which is even better, but only a few understand what it actually is, let alone knowing how it works in Pakistan.

Therefore, in this blog post, we will look at how net-metering works in Punjab, including any policies that might affect the rates of how the energy from your solar energy solution is fed into the grid, and how much is your local DISCO going to knock it off your energy bill. It is important to understand before we delve into this topic is that net-metering does not automatically reward you with cash; it is only to be calculated in the form of savings on your energy bill.

Now, without any further ado, lets get into how net-metering works in Punjab; but first, lets discuss the basics of net-metering; what it is, and how it works.

Net-metering: the basics

Net-metering is a process whereby any extra energy, generated by your solar energy solution, and NOT consumed by your household or premises, is then fed into the grid, where it can be utilised by other consumers. Doing this basically allows the system owner to further double down on their savings, which is done by giving credits to the consumer in their utility bill towards the amount of energy fed into the grid. Different local laws and regulations call for different amounts to be fed into the grid, with caps and limitations set on how much energy can actually be fed into the grid.

System configuration for net-metering

It is important to understand that not all solar energy system types and configurations allow for net-metering. the misconception is that every solar energy solution allows for net-metering to be enabled, however, in reality, only the solutions connected to the grid can obviously do it, which automatically excludes off-grid solutions. However, on-grid solar solutions and hybrid solutions can have net-metering enabled on them, however, it needs to be done in accordance with the laws and guidelines as set by the local government and electric authority.

Net-metering in Punjab: the details

Net-metering in Punjab is pretty much the same it is elsewhere, except for the details of how much energy can be fed into the grid, and at what rate the energy will be counted towards the bill. Once again, it is important to understand that the savings or payment for this energy isn’t supposed to be in monetary form, which means that you cannot receive money from the DISCO against the energy fed into the grid. Instead, it is usually in the form of savings on your bill. But the process in Punjab is the same as it is elsewhere. The solar energy solution generates energy, which is then utilised by the household or office. The extra energy, generated but not utilised, is then fed into the grid, which uses a bidirectional meter that tracks how much energy has been sent to the grid, and how much energy has been consumed by the premises. This allows for a calculated estimate of how much energy the premises consumes on a net basis, taking into account the energy consumed and the energy fed into the grid.

RS Energy: The Best Solar Company in Lahore

For expert guidance on system selection, compliant net-metering setup, and end-to-end solar services in Lahore, trust RS Energy to design, install, and support a high-efficiency solution that maximises your savings.