Net-Metering in Punjab: Everything You Need to Know
As Pakistan solarises rapidly and the grid acclimates to the changes across the horizon when it comes to energy consumption, there is a significant debate over how electricity distribution companies and state-owned entities should treat or process applications for net-metering, especially when there are a lot of consumers with solar energy solutions willing to trade their excess energy for a break in their high-tariffed, inflated bills. However, the state authorities apparently aren’t too keen on giving up their lucrative power contracts, and at times, this might get in the way of consumers getting a good return on their solar energy solutions, especially through net-metering.
In this blog post, we will look at net-metering in Punjab; however, since people aren’t too well-versed with solar energy in general and how net-metering works in particular, therefore, we will start with the basics of net-metering, and then, we’ll proceed onto net-metering in Punjab, and how consumers with a solar energy solution can ensure that their extra energy can be reused by the grid, providing them with better savings, with efficient solar energy systems from RS Energy. Lets get right into it.
Net-metering: what is it?
Net-metering refers to the practice of feeding the excess energy, generated by your solar energy solution and unused by your home or commercial premises, to the grid, in exchange for further discount on your utility bill, already being supplemented by using solar energy. For net-metering, a connection to the grid is obviously imperative, which is why system configurations like on-grid solar solutions and hybrid solar solutions can utilise the benefits offered by net-metering. Since off-grid solutions aren’t connected to the grid at all, therefore, net-metering won’t be available on such systems.
Net-metering: factors
There are several factors that the consumer needs to be mindful of, especially when it comes to net-metering and enabling net-metering in Punjab, since the policy is subject to revision every now and then, and most of the time, the policy is aimed at curbing the benefits towards the consumer.
i. System output
The most significant factor that consumers need to be aware of is the output of the system. More specifically, that the system actually produces excess energy; otherwise, the energy that could have been consumed by the premises ends up getting fed into the grid, and with barely lucrative buyback rates, the usable energy might end up costing you more or reducing your potential for savings.
ii. Eligibility
The net-metering policy in Punjab only allows for residential, commercial and industrial consumers with both on-grid and hybrid systems to participate in net-metering programmes.
iii. System configuration
As explained beforehand, only hybrid and on-grid systems are able to utilise the benefits of net-metering, so ensuring you go with either one of those is also important.
iv. Compliance
Punjab follows guidelines and compliance metrics issued by NEPRA and AEDB, whose guidelines need to be adhered to and satisfied in order to make the most out of net-metering for your system.
v. Contract
Once the other details are down, consumers will need to sign a contract agreement with their local DISCO, detailing the terms of PPA or power purchase agreement from the consumer and their feedback system from their solar energy solution.
Net-metering in Punjab: the process
While it may seem like an inordinately technical process, net-metering in Punjab isn’t all that complex or Herculean of a task. In fact, the only part of the process that might take some time is the application process and the issuance of the green meter. Lets take a quick look at the process required for net-metering in Punjab.
1. Installation: Get your hybrid or on-grid system installed.
2. Application: Apply for license for net-metering with your local DISCO.
3. Inspection: A team from Punjab Energy department will inspect the system and issue an NOC based on their observations.
4. Agreement, allotment of license: Once you have the NOC, you will sign an agreement with the DISCO and a license will be issued, allowing you to enable net-metering on your system.