Complete guide to net metering, green meter application, solar export billing, and how to earn credits from your solar system.
Do you have a solar system on your home that is higher than your load capacity and would like to know how it works with LESCO? Net metering has now been introduced by LESCO, which benefits solar users. There is not only a reduction in monthly bills to pay, but even reimbursement from the government if the government uses the units of electricity.
It is for this reason that people are installing solar systems with higher capacity, which benefits both parties. LESCO uses their solar electricity, which is monitored by green meters, and the consumer can utilize it either as electricity back or money. Here is a complete guide you should be familiar with if you installed a solar system.
A green meter works on two phases and if a person uses a solar system at home and is able to generate sufficient power, then his personal use green meter can provide that electricity to WAPDA, which is what they supply to their customers. The owner of the green meter will receive credits as a result. Compared to what they give back, WAPDA takes that electricity at a low rate, so both parties benefit.
You must know the requirements and process by which you can apply for LESCO net metering. Here is a step-by-step guide by which you can easily apply and know the application requirements.
Please prepare the following documents for your net metering application:
The unit rate is not the same for all hours. There is a different rate for peak and off-peak hours. A peak hour is defined as times when electricity consumption is high, so the unit rate is higher. Off-peak hours are times when electricity consumption is usually low, so the unit rate is lower.
Per unit during peak hours
Per unit during off-peak hours
| Season | Peak Hours (4 hrs) | Off-Peak Hours (20 hrs) |
|---|---|---|
| Dec - Feb | 5:00 PM to 9:00 PM | 9:00 PM to 5:00 PM (Next Day) |
| Mar - May | 6:00 PM to 10:00 PM | 10:00 PM to 6:00 PM (Next Day) |
| Jun - Aug | 7:00 PM to 11:00 PM | 11:00 PM to 7:00 PM (Next Day) |
| Sep - Nov | 6:00 PM to 10:00 PM | 10:00 PM to 6:00 PM (Next Day) |
These units are those which we take from the grid when our solar system is not producing enough energy or not producing energy at all. Most of the time these units are taken when the sun is not shining or the weather is cloudy. If our system is unable to generate enough energy to satisfy our demand, it takes back energy from the grid, and those units are then deducted from our export units.
When our system produces more energy than what we require, units are given to the grid. Usually, this happens during the daytime when the sun is at its peak and the system generates more energy than what we need. These units are considered negative readings and known as export units. We have a plus point to gain payment in the form of cash or units when the sun is not shining.
LESCO conducts net meter readings by taking four readings of the green meter/net meter. It is easy to take these readings since each green meter has a specific display code.
| Meter Code | Reading Type | Description |
|---|---|---|
| 06 | Peak Import | Total units consumed from the grid during high-rate hours (e.g., 5 PM - 9 PM). |
| 07 | Peak Export | Solar units sent to the grid during peak hours. (Usually 0 as there is no sunlight at night). |
| 08 | Off-Peak Import | Total units consumed from the grid during normal-rate hours (remaining 20 hours). |
| 09 | Off-Peak Export | Surplus solar units sent to the grid during the day (Off-Peak hours). |
Since the unit export and import peak and off-peak rate hours are different, the net bill is calculated based on these four readings, rather than the simple bill. Using this example, let's understand:
| Description | Code | Units | Rate (Rs.) | Total Amount |
|---|---|---|---|---|
| Peak Import (Evening) | 06 | 150 | 48.00 | Rs. 7,200 |
| Off-Peak Import (Day/Night) | 08 | 350 | 41.00 | Rs. 14,350 |
| Total Import Cost | -- | 500 | -- | Rs. 21,550 |
| Description | Code | Units | Rate (Rs.) | Total Amount |
|---|---|---|---|---|
| Peak Export | 07 | 0 | 27.00 | Rs. 0 (Credit) |
| Off-Peak Export | 09 | 900 | 27.00 | Rs. 24,300 (Credit) |
| Total Solar Credit | -- | 900 | -- | Rs. 24,300 |
Throughout the year, there are four quarters that are analyzed every 3 months. If you have a positive bill, you have to pay it. If you have a negative bill, you can take cash or adjust the credit in the next quarter.
First quarter analysis. Credits or payments are settled.
Second quarter analysis. High solar production season begins.
Third quarter analysis. Peak solar production period.
Fourth quarter analysis. Annual settlement done.
There are multiple advantages of switching to green metering:
Here is an estimated breakdown of the costs involved in setting up net metering:
| Item | Estimated Cost (Rs.) |
|---|---|
| Bi-Directional Meter | 35,000 - 55,000 |
| Application & NEPRA Fee | 5,000 - 15,000 |
| Technical Documentation | 10,000 - 20,000 |
| Protective Devices | 15,000 - 25,000 |
| Earthing/Grounding | 10,000 - 15,000 |
| Total Estimated Cost | Rs. 75,000 - 130,000 |
With net metering, electricity goes in both directions. When solar produces enough energy, it goes to the grid, and then when it gets low, it goes back to the solar system.
Three years are the term of the agreement between the producer and LESCO.
An electric green meter reads electricity both in import and export units to calculate how much electricity producers give and take.
Yes, if your solar export exceeds your grid consumption, you can receive cash payment or adjust the credit in the next quarter during the quarterly adjustment.
Your solar system should be larger than your monthly electricity usage to benefit from net metering and earn credits from excess production.