Pakistanis to be Able to Sell Solar Power Back to the Government

In a situation where energy crisis is only worsening with each passing day, Pakistan has approved the usage of grid-connected solar energy that will enable common citizen to sell solar energy back to national-grid at a fixed rate.

When implemented, individuals will be able to send energy back to the national-grid with the help of smart-meters with following details:

  • If you have solar panels installed and you are generating more energy than you need, then simply send the power back to the grid and get paid
  • Individuals can take input from the grid (as we do now) however they will also be able to send additional energy back to grid when they will have more energy than the requirement (for example: during day time)
  • With net-metering, individuals will be credited for the solar energy they will add to the national grid.
  • Tariff applicable for purchase of electricity from the consumer will be the same at which he has been billed by the company for electric power

Individuals who can generate more energy than they need can simply send the power back to the grid and get paid

While the smart grid ecosystem requires the complete over-haul of meters and the grid, the project can go in phases and simple meter-replacement with smart-meter can start the process.

Unfortunately, unlike conventional meters that are provided by electric companies, consumers who would want to sell solar-generated electric power will have to bear the cost for the the smart-meters installations.

The approval of net-metering is a major breakthrough that could spur use of solar energy and help Pakistan’s government cut power shortages in the long run.

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This approval for net-metering is followed by reversal in 32.5% tax that was imposed on imported solar equipment in the country’s 2014-2015 budget.

Starting Q1 2015, Bank Al Falah will allow financing up to five million rupees for rooftop solar installation

Along-with a plan for mortgage financing for home solar panels is also in the approved by the State Bank to encourage individuals get solar panels installed at their premises.

State Bank of Pakistan and the Alternative Energy Development Board have recently allowed the bank Al Falah for the first time to finance rooftop solar installation with home mortgages.

Starting first quarter of 2015, Bank Al Falah will allow financing up to five million rupees for rooftop solar installation.

With massive tax-cut for solar energy products, on top of mortgage financing, government is expecting around 800-1,000 megawatts of solar panels imports by private sector during 2015.

Via Dawn

Tech reporter with over 10 years of experience, founder of ProPakistani.PK

  • The Cost of Smart meter might run between 10-15k, just my guess.

    But the big investment from consumers will be Grid Tie Inverters. Almost all the inverters being sold in the market at the moment are Stand Alone. Good Quality Grid Tie inverters cost about 10 times than the regular ones. So a 5k inverter which is around 60k, is about 4-5 Lakh when you go with Grid Tie Inverter.

    But one should be able to recover the cost in long term from the Savings he will make by reducing number of Batteries.

  • This announcement by the Govt is nothing more than a “look pretty, do nothing” approach — may be they want to come across as being progressive. Who knows?

    I see this announcement as Government conceding that it can’t fix the electricity issue in short to mid-term.

    There are a number of factors that come into setting up a smart-grid, and the country is far from achieving this goal, let alone having the financial means to carry out such an exercise. Not only the national grid needs to be built up from scratch (the current grid is at its end of life and can’t carry more than 15,000 MW), but DISCOs & NTDC’s storage & distribution, billing, allied systems and customer premises equipment (smart meter, inverters, etc) will need to be upgraded as well.

    For the customer, this arrangement offers no ROI. If one has to spend (or God forbid) finance a solution at 15-18%, how long do you think recovering that money will take? And that too at DISCOs wholesale rate?

    Thanks, but NO THANKS!

    If I were to do it, I would install a complete grid-free solution with batteries, DC/inverter-based ACs and appliance, and get rid of my WAPDA meter altogether. Such a solution at around 10 KW should not cost more than Rs. 2.5 million or so.

  • This is under process… so far no tarrif announce how much they will pay to consumer… this step can save expense on batteries.

  • People here are more intelligent and they understand what is being offered to them. The cost is mentioned about 4-5 lacs, that along with batteries, it will go upto ~10lac (remember, we are selling energy to government). So we require huge backup and maintenance.

    Most people are aware of the UPS and they know its battery performance on resistive (TV/Monitors, lighting, iron, etc.) and inductive load (fans, refrigerator, deep freezer, air-con, pump/motors).

    So what will be the ROI ? Nothing, as it is solar not wind.

  • If executed properly, it can be very effective, Example: If I use 1000 units in 1 month, but I use less during the day, maybe my solar panels will generate (based on capacity) about 800 Units or even more…. So my electricly bill will be 200 units only.. (No need of battery as additional genraltion will directly be given to the grid)… The only cost is the intial set up cost,which willbe recovered through less bills… In Germany its quite common….

      • @Ali Baba its not like you are thinking………extra energy generated by your personal solar system will feed the national grid and will be measured and saved through the smart meter (as balance units of electricity) during day time, when normally demand is higher than that of night time. during night you will get electricity from WAPDA and the smart meter will take care of the balance electricity produced by your solar system……..means lets assume that your system is producing 10 units a day, and your demand is 8 units (5 during day and 3 for night). you will get paid for 2 units

  • i think ..this solar planted energy is costly . also maintaining batteries etc is headache .i belong to middle class .. we can not afford .. if theft of electricity reduces .this will help a lot ..

    • You don’t need batteries for this system. All you need is solar panels and grid tie inverter and hook it in any socket in your home. It is simple a that.

  • Can we install Solar Power system at home with options of buy back by wapda? in Pakistan. Is there any need of batteries for storage in this case or not? Please clear this point?

    How to get complete information about this option of selling extra electricity produced by a solar system at home say in Islamabad?


    M. M. Hassan

    +92-333-850 7474
    Gmail: [email protected]

    • 1.all you need is solar panels and grid tie inverter. grid tie inverter takes DC electricity from your solar panels and convert it to AC electricity. you can connect it into any socket in your home. you do not need any batteries or even a solar charge controller.
      2. About selling electricity back to grid/wapda grid. we’ve no information on that yet. or even if that’s possible.

  • Govt will not pay 1 Paisa in cash ..they will only credit money in your mobile companies crediting free minutes..

  • It sounds too good to be True.
    I’ve installed 1KW Solar Sytem in my resident a couple of years ago. i find out it produces too much energy more then my daily usage but it seemed a good idea at that time to save batteries for a longer time. each day hundreds of watts that are being produced by my solar system goes to waste because i don’t use them and my battery bank is almost full in 2 hours time. so i want to use that extra energy to use in AC and Water motors. Don’t mind sending it back to grid system.
    So my question is . is it legal to use grid tie inverter in Pakistan. and where can we buy it from? Thanks

  • Its been 5 months, and still that NEPRA rules are in shape of a draft only. Nothing has been done about Net Metering

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