Understanding Net Metering and Its Impact on Your Power Bill
One of the major reasons why solar energy systems are so popular in Pakistan, especially hybrid ones, is because they offer the incredibly lucrative feature of net-metering, which provides additional benefits to the owner of the solar energy system.
However, despite them enjoying a reputation among the general public as something that amplifies the savings potential, the general knowledge of the functioning behind net-metering is not widely known.
Today, we’ll be looking at the basics of net-metering in Pakistan; how it works, what are its benefits and how consumers can use it to their financial advantage.
We will also be discussing the best solar company in Pakistan, RS Energy, and how hybrid solar energy systems from RS Energy with net-metering enabled can provide you with the ideal setup to minimize your utility bills, while enjoying the maximum efficiency from solar energy and the grid, combined.
Net-Metering in Pakistan: How Does It Work?
Essentially, net-metering is a billing method in Pakistan that credits owners of solar systems for the power they bring to the grid. It is possible that the solar system at your home is generating more energy than it utilizes.
Generally, the power meter runs reverse if the home is net-metered so that any excess power usage around evening time can be credited against the system's ability to yield power. Energy utilities are only charged to clients based on their "net" usage. As a result of net-metering, clients can produce their own power in an efficient and effective manner.
In simple words, the excess electricity generated by the solar energy system can be fed back into the grid, which allows for the grid to count it as credit towards the consumer’s bill. However, it is important to note here that the utility companies including IESCO, LESCO or K-Electric are not authorized to disburse cash returns, which is why, in net-metering, only credits are applied towards the utility bill.
Which Systems Can Utilise Net-Metering?
Net-metering can be performed on hybrid or on-grid solar panels with an integration of a bi-directional electricity meter. It is necessary to connect these solar panels to a three-phase electricity source to offset the excess energy that is generated. Then you can use credits to use free electricity units from the grid.
Since off-grid systems take a consumer completely off the grid and do not utilize any energy from it, net-metering is not available for off-grid systems.
What Are the Regulations Around Net-Metering in Pakistan?
There are regulations relating to net-metering issued by NEPRA a few years ago, so this is a new yet legal practice. There are many advantages to net-metering, regardless of whether you are a residential or commercial customer depending on the type and size of the system. A larger project causes the price for industrial customers to be higher than for residential customers.
Advantages of Net-Metering
i. Financial Incentive
Solar energy systems by default save you a lot of money in utility bills. With net-metering enabled, this can be further compounded; by selling your unused energy to the grid, you can reap credits from the utility company, thereby offering you more saving potential and financial incentive in enabling net-metering for your solar energy system.
ii. Reduces Bills Even More
Solar energy systems take the load off the grid, allowing you to tap into solar energy for your consumption requirements. With net-metering enabled, the excess is sold to the grid itself, thereby reducing your bills even more. With the right system in ideal conditions, your bill can even be zeroed, with the utility company offering you credits over subsequent bills after net-metering.
iii. Reduces Long-Distance Transmission Losses
With net-metering enabled, long-distance transmission losses are no longer a problem. Simply enable it on your hybrid or on-grid solar energy system and experience seamless energy reliability at all times.
RS Energy: The Best Solar Company in Pakistan!
RS Energy is the best solar company in Lahore, offering comprehensive solar energy solutions designed for maximum efficiency, and allowing consumers to tap into the renewable energy source to complement and fulfill their energy demands without depending on a troublesome grid. Experience the best of solar energy with RS Energy, the best solar company in Pakistan with the best and most comprehensive selection of solar energy solutions geared towards maximum efficiency and performance.