A new proposal regarding net metering has come before the government, according to which the units accumulated by the net metering users will now have to be spent in one month instead of three months, failing which these units will be lost. .
If this decision is implemented, large solar system installers will have to face losses and need to increase battery banks.
Speaking at a seminar on challenges and solutions related to electricity distribution through net metering, organized by Germany’s central development organization, the Deutsche Gesellschaft für Internationale Schweinarbeit, experts expressed concerns regarding net metering and ways to overcome them. What did
Through this seminar, The Power Division, Nepra, CPPA, Power Distributing Utilities (DISCOS), The Power Information Technology Company, Pakistan Solar Association and Solar EPC companies got an opportunity to come closer to each other and exchange ideas. Experts suggested solutions that they believed would not be detrimental to either party.
Under the net metering method currently in use, the excess power generated by the solar system is fed to the grid, with the maximum number of units being determined at the end of every three months by determining the monetary value of the additional units. Consumption is adjusted. In simple words, a net metering customer has three months to use the additional units they generate. After three months when the adjustment takes place, the additional units are converted into money.
Using the units is beneficial for the consumer as the electricity companies provide the consumer with taxes on the electricity they supply and it is Rs 50 per unit. While Net Metering customer’s additional units when converted into money are charged only for electricity and less than Rs.20 per unit.
Participants in the seminar said that due to the way the extra units are carried forward, net metering customers install more solar than required to avoid paying the grid for electricity for three months.
Apart from the DISCOs, a few experts also suggested that this facility should be made monthly instead of quarterly, which would encourage self-consumption and improve battery energy storage systems.