LESCO Net Metering & Green Meter Guide: Everything You Need to Know

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.

LESCO Net Metering and Green Meter Guide 2026
Table of Contents

What is Net Metering (Green Meter) and How Does It Function?

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.

How LESCO Net Metering Green Meter Works

How to Apply for LESCO Net Metering and Requirements

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.

  1. Active Connection: To apply for net metering, you must have an active connection and a billing history on that connection.
  2. Solar System Installation: The solar system for which you are applying for net metering has already been installed, and it should be larger than your monthly usage.
  3. Application Submission: The next step is to submit your application, which must follow the rules set forth in SRO 892(1) 2015. You can get assistance from AEDB-registered individuals.
  4. Inspection & NOC: After the application is submitted to Punjab Energy Department, a team will visit the premises and check the requirements. Once the requirements are satisfied, a No Objection Certificate (NOC) will be issued.
  5. Signing of Agreement: Producers and LESCO sign an agreement to sell their electricity for three years to the national grid when NOC is issued.
  6. NEPRA License Issued: Once the agreement is signed, the case is sent to the National Electric Power Regulatory Authority (NEPRA), which issues a license for the next three years after verifying the information. The license allows you to sell electricity to the national grid and recognizes you as an independent producer.
  7. Activation of Net Metering: Upon getting the license from NEPRA, your services will be activated and a three-phase meter will be installed at your premises, allowing you to sell electricity.

Required Documents for LESCO Green Meter Application

Please prepare the following documents for your net metering application:

Peak and Off-Peak Hour Rates

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.

Peak Rate

~Rs. 46.85

Per unit during peak hours

Off-Peak Rate

~Rs. 40.53

Per unit during off-peak hours

Season-Wise Peak & Off-Peak Timings

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)

Import and Export Units Explained

Import Units

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.

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.

How LESCO Conducts Net Meter Readings

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 Display Codes

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).

Net Billing Explained: How is Your Final Bill Calculated?

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:

Import Cost (Units Consumed from Grid)

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

Solar Credits (Energy Given by Solar Production)

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
Net Bill Formula: Import Cost - Solar Credit = Net Bill
Rs. 21,550 - Rs. 24,300 = -Rs. 2,750 (Credit) — You earn money!
LESCO Net Metering Bill Calculation Example

The Quarterly Adjustment System for Solar Exports

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.

Q1 (Jan - Mar)

First quarter analysis. Credits or payments are settled.

Q2 (Apr - Jun)

Second quarter analysis. High solar production season begins.

Q3 (Jul - Sep)

Third quarter analysis. Peak solar production period.

Q4 (Oct - Dec)

Fourth quarter analysis. Annual settlement done.

Major Advantages of Switching to Green Metering

There are multiple advantages of switching to green metering:

Estimated Installation Costs

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

Frequently Asked Questions

How does LESCO net metering work?

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.

What is the duration of the agreement?

Three years are the term of the agreement between the producer and LESCO.

What is the purpose of the LESCO green meter?

An electric green meter reads electricity both in import and export units to calculate how much electricity producers give and take.

Can I get cash for excess solar units?

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.

What size solar system do I need for net metering?

Your solar system should be larger than your monthly electricity usage to benefit from net metering and earn credits from excess production.