Net metering credits solar energy system owners for the power they’re putting back on the grid.
In this system, a consumer can bring power from their solar panels to the grid and receive a credit for each kilowatt-hour they send. Net metering gives the consumer full credit even if they export electricity during peak hours.
For example, the consumer’s power bill credit might be greater than what the consumer has consumed. In this case, the surplus electricity would go to the DISCOs, and they would not have to pay for it back.
After careful analysis of solar net metering policies in other countries, a new policy was introduced that mirrors their success. After the National Electric Power Regulatory Authority issued its regulations for DISCOs in September 2015, devices like solar panels could feed excess clean energy back into the grid and be subtracted from the devices that consumed dirty energy.
Through these regulations, customers of the national grid will be offered net metering for small-scale installations of 1 kW to 1 MW.
Benefits Of Renewable Energy
Renewable energy is a long-term solution, whereas solar PV technology gives access to affordable electricity during the system’s life. Residential and commercial customers can switch their power load to RE and reduce their electricity bills.
Pakistan has a high affinity for solar power generation and the country’s climate adds to the potential of this industry. The sun shined almost all day long in Pakistan, barring a few areas in the northwest.
Despite the meager amount of solar power generated, fossil fuels meet 64% of the country’s energy needs.
People can potentially generate electricity on their own and make money by selling it to the national grid for a profit.
Over 42 certified companies and service providers who install wind or solar PV systems receive net metering up to 250 kW capacity and are registered with the Alternative Energy Development Board (AEDB). Hundreds more are waiting to be registered with the department.
Pakistan has seen a sharp increase in the number of net metering licenses issued in that quarter. Renewable energy provides a hopeful future for the country. It shows a steadily increasing path for how many will be issued going forward.
Installing solar panels on your home or business is beneficial in several ways, such as offsetting power bills, assisting local businesses, and creating new jobs for engineers as well as youth. This also helps eliminate the initial investment costs and the circular debt associated with hydropower.
The government has made a surprise move to enact a policy that could affect the success of the existing policies. With this new law, customers were facing obstructions in their ability to get net metering this year.
These obstacles have likely been created by the IPPs that have put a halt on power generation and transmission.
Therefore, the existing policy for net metering must be supported and amended to make it more sensible. Instead of blindly changing the price and greatly restricting supply. A review of the policies should be made before substantive changes are made.
Across the world, countries are providing incentives to consumers to install solar panel systems. In Pakistan, however, the government is not only overlooking these incentives but also acting to protect local market players who have been the main cause of gridlock in power production.
In order for the net metering policy to thrive. It is imperative the government does not interfere and allows it to run under market forces.