Net Billing vs Net Metering — Differences
The real-world net metering experience
Net metering paperwork in Pakistan takes longer than the solar installation itself — that's the irony. Your panels go up in 3-5 days, but the DISCO approval can take 30-90 days depending on your region. LESCO in Lahore processes fastest (30-45 days on average), while smaller DISCOs can take 60-90 days. During this waiting period, your system generates electricity but you can't export to the grid — the excess is wasted unless you have battery storage. Some homeowners time their installation to coincide with winter (lower generation, lower waste during the approval wait) and have net metering active by summer peak.
The application requires coordination between you, your installer, AEDB, and your DISCO. Most good installers handle the paperwork as part of their service — if yours doesn't offer this, it's a red flag about their experience. The most common rejection reasons: inverter not on the DISCO's approved list (verify before buying), incomplete single-line diagram (your installer should prepare this), and mismatch between installed capacity and application (they must match exactly, down to the watt).
Net metering: excess units credited at retail rate (meter runs backward). Net billing: excess purchased at lower wholesale rate. Net metering gives consumers more value.
Related: net metering, panel sizing, solar calculator.
Net Billing vs Net Metering — Financial Comparison
| Aspect | Net Metering | Net Billing |
|---|---|---|
| How it works | Meter runs backward for exports | Exports sold at wholesale rate |
| Export rate | Retail rate (Rs. 30-50/unit) | Wholesale rate (Rs. 8-12/unit) |
| Financial value of 1 exported unit | Same as imported (100%) | 25-35% of imported value |
| Billing method | Net of import - export | Export paid separately at lower rate |
| Best for consumers | Yes — maximum value | No — consumers get less value |
| Best for DISCOs | No — they buy at retail | Yes — they buy at wholesale |
| Current Pakistan policy | Available (apply through DISCO) | Being discussed as alternative |
| 5 kW system annual savings (500 units/mo) | Rs. 150,000-200,000 | Rs. 80,000-120,000 |
Why This Distinction Matters for Your Wallet
Under net metering, every unit you export is worth the same as every unit you import — your meter doesn't distinguish between the two. If you consume 300 units and export 200, you pay for 100 units. Under net billing, those 200 exported units are valued at the lower wholesale rate (Rs. 8-12/unit) while your 300 imported units are charged at the retail rate (Rs. 30-50/unit). The difference is massive: net metering saves you Rs. 6,000-10,000/month on a 5 kW system compared to net billing for the same system.
Pakistan currently uses net metering for residential solar. However, DISCOs have pushed for a switch to net billing (which benefits them financially). Policy discussions are ongoing. If you're considering solar, applying for net metering NOW locks you into the current favorable policy. Systems already under net metering agreements may be grandfathered if policy changes — but there's no guarantee. The sooner you install and get net metering approved, the more protected you are from potential policy shifts.
Apply for net metering: step-by-step guide. Calculate savings: savings calculator. System comparison: on-grid vs off-grid. Panel sizing: how many panels needed.
The financial impact of the net metering vs net billing distinction is concrete: on a 5 kW system exporting 200 units monthly, net metering credits those units at Rs. 35-50 each (Rs. 7,000-10,000/month value). Net billing would credit them at Rs. 8-12 each (Rs. 1,600-2,400/month value). The annual difference is Rs. 55,000-91,000 — enough to change the system payback period by 1-2 years.
Always verify current requirements. Fees, timelines, and document requirements can change without advance notice. Check the relevant official website or call the office before your visit to confirm the latest requirements.