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How Does Net Metering Work?
Standard electric meters only run in one direction. When you apply for net metering, your DISCO replaces your standard meter with a bi-directional “Green Meter.”
During the day, your solar panels generate power. If you produce more than you use, the extra electricity flows into the national grid, and the green meter spins backward (recording exported units). At night, when solar isn’t working, you draw electricity from the grid. At the end of the month, you are only billed for the “net” difference.
Requirements for a Green Meter
To legally sell electricity to WAPDA, you must meet NEPRA’s baseline requirements:
- You must have a 3-phase electricity connection. (Single-phase meters do not qualify for net metering).
- Your solar system capacity must be at least 3kW and up to 1MW.
- Your solar inverter must be on the NEPRA/AEDB approved list (usually high-quality hybrid or on-grid inverters).
- The installation must be done by an AEDB-certified solar vendor.
Application Process for Net Metering
The process usually takes 1 to 3 months and is handled mostly by your certified solar vendor:
- System Installation: The vendor installs your solar setup per NEPRA standards.
- Application Preparation: The vendor prepares the application, structural stability certificates, and wiring diagrams.
- DISCO Inspection: The application is submitted to the local DISCO. An electrical inspector visits the site to ensure safety compliance.
- NOC Issuance: Once cleared, NEPRA issues a Generation License.
- Green Meter Installation: The DISCO issues a demand notice. Once paid, the bi-directional green meter is installed, activating your net metering.
NEPRA Rules and Buyback Rates 2026
Under current NEPRA net metering rules, units exported to the grid are offset against units consumed during off-peak hours at a 1:1 ratio. If you export more than you consume over a 3-month cycle, WAPDA pays you for the excess units based on the National Average Power Purchase Price (buyback rate), crediting the monetary value to your future bills.
Top 10 Frequently Asked Questions (FAQs)
1. Does net metering work during load shedding?
No. For safety reasons (anti-islanding), standard on-grid net metering systems shut down during power outages to protect linemen working on grid wires. You need a hybrid inverter with batteries for backup during load shedding.
2. Can single-phase consumers apply for a green meter?
No, NEPRA net metering regulations mandate a 3-phase commercial or domestic connection. Single-phase consumers must upgrade their WAPDA connection first.
3. Will WAPDA give me a cash check for surplus units?
No. WAPDA does not issue physical cash or bank transfers. The monetary value of your surplus units is credited to your 14-digit reference account to cover future fixed charges and taxes.
4. What is the difference between peak and off-peak exported units?
Solar energy is generated during the day (off-peak hours). Therefore, exported units can only offset off-peak consumed units. You still have to pay the higher tariff for electricity used during peak hours (e.g., 6 PM to 10 PM) unless you have massive off-peak surplus credits to cover the monetary cost.
5. How much does the green meter demand notice cost?
The demand notice fee for the green meter varies by DISCO but generally ranges from Rs. 15,000 to Rs. 25,000 for standard domestic installations.
6. Do I need an AEDB-certified vendor for net metering?
Yes. DISCOs will instantly reject net metering applications if the solar system was not installed and certified by an official AEDB (Alternative Energy Development Board) approved vendor.
7. How long is the NEPRA generation license valid?
A standard NEPRA generation license for residential net metering is valid for 3 years, after which a simple renewal process is required.
8. Do I still pay taxes if my net units are zero?
Even if your net electricity consumption is zero, you are still liable to pay fixed surcharges like meter rent and TV fee, which usually total a few hundred rupees.
9. Can I install solar panels larger than my sanctioned load?
Your solar system’s kilowatt capacity cannot exceed the sanctioned load of your WAPDA connection. If you want a 10kW system but your sanctioned load is 5kW, you must apply to WAPDA for a load extension first.
10. What is a bi-directional meter?
A bi-directional meter is a specialized utility meter (the green meter) that can measure two things: the electricity you pull from the national grid, and the excess electricity your solar panels push back into the grid.