Net metering has become one of the biggest turning points for electricity consumers in Pakistan. In cities under the Faisalabad Electric Supply Company (FESCO), thousands of homes and businesses are now shifting to solar energy because of rising electricity prices and the opportunity to earn through net metering.
This detailed guide explains how FESCO net metering works, how to apply, what documents you need, the cost, benefits, FAQs, expert insights, and step-by-step instructions to get your system approved.
The goal is to give you a complete, easy-to-understand resource that answers every question you may have before investing in solar.
What Is FESCO Net Metering?
Net metering is a billing system approved by NEPRA under the Distributed Generation Regulation. It allows customers with a solar power system to send extra electricity back to the FESCO grid. In exchange, FESCO credits the consumer’s bill or adjusts the exported units.
In simple words:
If your solar system produces more electricity than you use, you do not waste it. Instead, FESCO buys it from you and reduces your electricity bill automatically.
Real-Life Example
Consider a home in Faisalabad with a 10 kW solar system. During sunny hours, the system may produce more than what the household uses.
If the home consumes 300 units and exports 450 units, the bill will show only the difference:
450 exported units – 300 consumed units = 150 units credit
This credit shifts to the next month and continues to reduce bills until fully used.
How Net Metering Works in FESCO Territory
To understand net metering clearly, you must know three key terms:
1. Import Units
Electricity you use from the FESCO grid.
2. Export Units
Extra electricity your solar system sends back to the FESCO grid.
3. Net Units
Difference between import and export.
Net Units = Import – Export
If export is higher, you get a credit balance.
FESCO installs a bidirectional meter that records both import and export units separately.
Why Net Metering Is Becoming Popular in Pakistan
Electricity prices have been rising consistently over the last few years. At the same time, solar installation costs have become more affordable. Homeowners and business owners now prefer long-term solutions that reduce dependance on the grid.
Key Reasons for Rising Demand
- High electricity tariffs in 2025.
- Increased fuel adjustments (FCA).
- Load-shedding issues in some areas.
- 40 to 80 percent savings observed by real consumers.
- Government support for renewable energy.
- Better solar panel prices and warranties.
Benefits of FESCO Net Metering
1. Zero or Very Small Electricity Bills
With net metering, many consumers cut their bills to almost zero, especially those with 6 kW to 12 kW systems. Commercial users with 20 kW to 100 kW systems have also reported massive savings.
2. Earn from Excess Electricity
If you generate more electricity than you consume, FESCO adjusts it in your next month’s bill. In some cases, consumers accumulate credit for 3 to 4 months.
3. Fast Return on Investment (ROI)
Solar investments now recover within 3 to 4 years.
This is because:
- Electricity prices increase every year.
- Solar systems generate consistent savings.
4. Increase in Property Value
Homes with approved net metering systems sell up to 10 to 15 percent higher because buyers prefer ready-to-use solar connections.
5. Long-Term Energy Stability
Solar panels last 25 years and require little maintenance. Net metering makes the system even more valuable by ensuring no energy goes to waste.
FESCO Net Metering Eligibility Criteria
To apply for net metering in FESCO, you must meet the NEPRA-defined requirements.
1. Minimum Solar System Size
The minimum system size allowed for net metering is 5 kW.
The maximum limit for residential consumers is 25 kW without special approval.
2. Bi-Directional Meter Installation
FESCO installs an officially approved meter that tracks both import and export.
3. Certified Solar System
Only system components with:
- AEDB certification
- Tier 1 solar panels
- Approved inverters
are allowed.
4. On-Grid or Hybrid System Required
Off-grid systems are not eligible.
5. Safe Wiring and Installation
FESCO inspects your wiring, inverter, and protection system before approval.
FESCO Net Metering Requirements & Documents
You must submit the following documents:
Required Documents
- CNIC copy of consumer
- Latest electricity bill
- Proof of solar system installation
- Solar system inverter certificate
- Solar panels’ serial numbers
- System layout diagram
- Application form
- Installer company’s license
- Single-line diagram (SLD)
Step-by-Step Process: How to Apply for FESCO Net Metering
This is the most important part for consumers. The process is straightforward but must be done correctly.
Step 1: Solar System Installation
First, install your solar system through an AEDB-certified company.
Step 2: Submission of Net Metering Application
Your installer submits all documents to FESCO and NEPRA.
Step 3: Technical Inspection by FESCO
A FESCO team will visit your home or business to check:
- Inverter model
- Solar panel wattage
- Earthing system
- Breakers and wiring
Step 4: Signing of Agreement
You sign the Distributed Generator Contract Agreement (DGCA).
Step 5: Meter Installation
FESCO installs a bidirectional meter within 10 to 20 working days.
Step 6: System Activation
Your system officially becomes live and net metering starts.
Cost of FESCO Net Metering in 2025
Consumers often misunderstand net metering cost. The cost is not for the solar system itself, but for documentation, inspection, and meter installation.
Average Net Metering Charges
- Application processing fee
- Meter cost
- Inspection charges
Typically, the total net metering process costs between 16,000 to 50,000 PKR, depending on system size and meter category.
How Much Can You Save with FESCO Net Metering?
Savings depend on:
- Solar system size
- Sunlight hours
- Household consumption
- Panel efficiency
Example Savings Table (2025)
| Solar System Size | Monthly Units Generated | Average Monthly Bill Before Solar | After Net Metering Bill |
|---|---|---|---|
| 5 kW | 500–650 units | 13,000–18,000 PKR | 0–1,500 PKR |
| 10 kW | 1,000–1,300 units | 28,000–35,000 PKR | 0 PKR |
| 20 kW | 2,000–2,600 units | 65,000–85,000 PKR | 0 PKR |
These savings reflect real averages from FESCO region consumers.
FESCO Net Metering: Complete 2025 Guide for Solar Users in Pakistan
- net metering Pakistan
- FESCO solar system installation
- solar panel cost
- bidirectional meter FESCO
- net metering requirements
- NEPRA net metering regulation
- distributed generation FESCO
- rooftop solar system
- on-grid solar
- solar electricity export
- renewable energy Pakistan
- solar power savings
Frequently Asked Questions (FAQ)
1. What is the minimum system size for net metering in FESCO?
The minimum allowed size is 5 kW.
2. How long does the approval process take?
Normally 20 to 45 days, depending on inspections.
3. Can hybrid inverters be used?
Yes, but only if they are on the AEDB approved list.
4. Is net metering profitable?
Yes. It significantly reduces bills and offers long-term savings.
5. Does FESCO pay cash for extra electricity?
No. Instead, FESCO adds credits to your next month’s bill.
6. Can I increase my solar system size later?
Yes, but you may need to apply again for net metering modification.
Expert Insights on FESCO Net Metering in 2025
Energy experts, including solar engineers and NEPRA-licensed installers, agree that the net metering landscape in Pakistan is rapidly improving. FESCO follows standard distributed generation procedures, which ensures safety and consumer reliability. Experts highlight three trends for 2025:
Trend 1: Decline in Solar Panel Prices
More people are switching to solar because equipment costs have reduced.
Trend 2: Faster FESCO Processing Times
Compared to earlier years, the utility is now processing applications faster.
Trend 3: Higher Electricity Tariffs Increasing Demand
With rising tariffs, solar becomes a long-term necessary investment.
Conclusion
FESCO net metering is one of the most reliable and cost-effective ways to reduce electricity expenses in Pakistan. Whether you are a homeowner in Faisalabad or a business owner in Jhang, Chiniot, Toba Tek Singh, or Mianwali, a solar system with net metering gives you control over your energy costs.