NET METERIN IN PAKISTAN: A cost effective way to generate your own electricity using solar panels
Dr Adeel Ahmed
Rawalpindi
What is net metering?
Net metering is a way of using solar panels with an inverter without the need of electricity.
In this system, the solar panels are connected to an inverter which converts DC current generated by the solar panels to 220V AC. The inverter is attached to the meter. The energy produced by the solar panels is utilized in the home. Any excess energy is exported to the grid instead of storing in batteries like an off grid solar system. For example is the amount of power generated at a time is 3 KiloWatts(KW) and the home is using 1 KW, the excess 2 KW is exported to the grid (IESCO in my case).
What do you need for net metering?
A detailed guide is provided by AEDB in the link below:
http://www.aedb.org/images/Net-Metering_Reference_Guide_for_Electricity_Consumer.pdf
1. Certified installers: The list of certified vendors can be found on AEDB website
http://www.aedb.org/component/judownload/root/3-solar/113-list-of-certified-companies-under-aedb-certification-regulation-2018?Itemid=101
You can select the installer in your city and contact them on their email addresses. I contacted multiple vendors on email. Only one replied back (solar sigma) and I asked them for installing the net metering system. I asked them a quotation for 3KW system which is attached below.
I selected a 3KW system (the minimum they offer) and the quoted cost including installation was 445500. The cost of 5 KW system was 598,900. They will need a copy of your CNIC and a copy of home electricity bill
- Permissions from regulatory authorities:
After the system is installed, it can not be attached to the grid without the approval of your electricity provider (IESCO in my case) and then from NEPRA. The application process is initiated by the installing company and is a painstakingly slow process. These government companies are the biggest hurdle in the installation of the solar system causing long delays.
- 3-Phase electricity connection:
Make sure you have a 3-Phase electricity connection before applying for installation as the net metering works only on 3-phase connections.
Request for installation of a new meter from your electricity provider:
Most likely you will have to change your home electricity meter in order to make it compatible with net metering. It cost me around 18000 to get a new meter installed.
Space to install solar panels: Ample roof space without shade to install upto 10 full size solar panels. This survey will be done by the installer which you choose. They will also check the meter and wiring of the house for compatibility with net metering.
A looooot of patience: The typical lazy attitude of IESCO and NEPRA makes your blood boil on several occassions
Problems faced in net metering:
1. Lazy installer: I made the payment on July 15 2019. They promised to install the system within two weeks but the installation began on 2 August and completed on 22 August. So it actually took 5 weeks. But I must say the quality of installation was very good and they also helped a lot in the application process. If they can just increase their workforce and communication effectively, then they can be an excellent company
2. Approval by IESCO: The application was initiated by Solar Sigma. I waited several months but the approval went nowhere. At last I decided to launch a complaint on Citizen Portal. Hats off to this awesome app, my application got processed in a week.
3. Approval by NEPRA: The next hurdle was NEPRA. Same cycle repeated. Waited a couple of months. Then launched a complaint on Citizen portal which got the application approved within 2 weeks.
4. 3-phase connection problem: After the approval was complete and the installer tried to connect the inverter to the meter, it didn’t work because the connection was not 3-phase, although it was mentioned on the electricity bill that it was 3 phase connection. I contacted regional office of IESCO and they told me a wire was burnt which was carrying electricity to my home. So I had to replace that wire. I don’t remember the exact cost but it was around 14000.
5. It does not generate electricity during load shedding: During load shedding the electricity generation is turned off and the system cannot generate any power. So you will have to rely on your UPS. If too much day time load shedding in your area then it will be less effective.
Advantages of net metering:
1. No batteries needed: Batteries are the major expenditure in solar installation. They also need to get replaced after 2-3 years. Net metering has no running expenditure of batteries and is a onetime investment.
2. Clean energy: The energy generated is environment friendly without burning fossil fuels.
3. Maintenance free: Apart from occasional cleaning of solar panels the system is maintenance free
4. Long life: The system is expected to work 15-20 years without any further expenditure.
My experience with net metering:
The payment was done on 15 July and the system started functioning on 15 February. That’s a 7 month delay. The majority of this delay was caused by IESCO and NEPRA (about 5 months). I am now using this system for the last 4 months and its working without any problems. It generates 2.6 KW at peak during the midday and total units generated during a sunny day are around 15-20 KWh. In 4 months I have generated 1850 units of electricity. The inverter has a nice app which you can use to monitor the real time power generation. I am attaching a few screenshots of the app.
My electricity bill is only 35 Rs per month now since the last 2 months. In June 2020 my bill was minus 6000 Rs which means IESCO ows me 6000 Rs.
According to this bill in the month of May, I exported 357 kWh to the grid and imported 241 kWh from the grid. So I sent 116 extra units to the grid which will be available to me in next month even if I don’t generate any electricity. As far as I can guess it saves me 14.3 Rs per unit for each unit generated by the solar system.
TOTAL cost of the system = 477500 Rs
Average monthly units production = 460 Units
Monthly savings = 6578 Rs
So according to this estimate the system will pay its price in 72 months that is 6 years. If the cost of electricity rises then the payoff will be even earlier. The solar panels have a warranty of 25 years and the inverter has a warranty of 10 years.
CONCLUSION:
In the end, I will say that it is a very good and environment friendly investment. If government can improve the application process then it will be excellent. In the future, if electric cars/bikes find their way in Pakistan then you will have a cost effective source to charge them at home as well. I will definitely recommend this investment if you have the space to install this system. Currently all big cities of Pakistan can use this facility. If your monthly electricity consumption is more than 500 units then I will suggest 5KW or even 10 KW system installation.
