MEPCO Net Metering Guide: How to Connect Solar Power to the Grid
Everything South Punjab electricity consumers need to know about installing solar net metering, obtaining a bi-directional green meter, calculating export credits, and navigating NEPRA licensing rules.
What is MEPCO Net Metering & How Does a Green Meter Work?
Net metering is a billing mechanism introduced under National Electric Power Regulatory Authority (NEPRA) regulations that allows grid-connected solar photovoltaic (PV) system owners in Pakistan to generate their own electricity and export excess solar energy back to their local distribution company—in this case, Multan Electric Power Company (MEPCO).
When your solar panels produce more electricity than your home, office, or farm consumes during peak daylight hours, the excess energy is automatically fed into the MEPCO regional distribution grid. At night or during cloudy weather, when your system is not generating enough power, you draw electricity from the grid as usual.
The Bi-Directional (Green) Meter Explained
Standard digital billing meters only record electricity traveling in one direction (from the grid into your building). A bi-directional green meter features two separate registers:
Tracks total units (kWh) consumed from the MEPCO grid when solar generation is insufficient.
Tracks total units (kWh) supplied back into the MEPCO grid from your solar panels.
Step-by-Step MEPCO Net Metering Application Process
Applying for net metering across any of MEPCO's 13 distribution circles (including Multan, Sahiwal, Bahawalpur, D.G. Khan, Rahim Yar Khan, and Khanewal) involves a structured multi-stage approval workflow governed by NEPRA's Distributed Generation and Net Metering Regulations.
Hire a Certified Solar EPC / Vendor
NEPRA requires net metering installations to be designed and commissioned by an accredited Alternative Energy Development Board (AEDB) / AEDB-NEPRA Category C-1, C-2, or C-3 solar installer. The installer will evaluate your roof space, assess transformer capacity, and ensure your proposed inverter has built-in grid synchronization and mandatory anti-islanding protection.
Prepare Required Application Documents
Your installer will help compile the standardized application package for submission to your relevant MEPCO Sub-Divisional Office (SDO):
- Standard Net Metering Application Form (Schedule-I).
- Copy of CNIC of the property owner / registered MEPCO consumer.
- Copy of the recent paid MEPCO electricity bill showing matching reference number & name.
- Technical specifications, single-line diagram (SLD), and test reports for the solar PV modules & grid-tied inverter.
- Vendor licensing certificate and system safety clearance report.
- Property ownership proof or NOC from the property owner (if leased).
MEPCO Site Inspection & Feeder Clearance
The SDO sub-divisional team and technical staff conduct a field verification of your property. They confirm that the solar inverter rating does not exceed your sanctioned load limit printed on your MEPCO bill, and verify that total net-metered installations on your local distribution feeder remain within NEPRA's 80% transformer threshold.
Demand Notice Issuance & Green Meter Procurement
Once technical approval is granted, MEPCO issues an official Demand Notice for the green meter cost, testing fees, and installation charges. Pay this Demand Notice at any designated commercial bank branch and submit the paid receipt back to your SDO office.
Signing Agreement & Commissioning
Sign the bilateral Net Metering Agreement (Schedule-II) with MEPCO (valid for 3 years, auto-renewable). MEPCO staff will install the tested bi-directional green meter, seal the connection, and forward your license details to NEPRA for formal generation license registration.
How Solar Units are Adjusted on Your Monthly MEPCO Bill
Understanding how solar credits appear on your bill is key to evaluating system payback. Every monthly billing cycle, MEPCO reads both the Import Units (kWh) and Export Units (kWh) from your green meter.
| Billing Scenario | Import (kWh) | Export (kWh) | Net Bill Impact |
|---|---|---|---|
| Scenario A: Generation < Consumption | 600 kWh | 400 kWh | Billed for Net 200 kWh at standard MEPCO slab rates + applicable taxes. |
| Scenario B: Generation > Consumption | 350 kWh | 550 kWh | Net zero energy bill for that month. Surplus 200 kWh rolls over as financial/unit credit. |
Want to estimate your net monthly bill based on your expected slab? Use our free MEPCO Bill Calculator to calculate net electricity charges and applicable taxes.
NEPRA Solar Buyback Rate Mechanism
When your exported units exceed your imported units over a quarterly settlement period, MEPCO compensates you for the surplus kWh according to NEPRA's designated off-peak national average power purchase price (PPP) or net metering buyback tariff guidelines.
Because NEPRA periodically reviews and updates energy tariffs, buyback rates are subject to official regulatory notifications. Consumers should verify active per-unit buyback rates directly on the NEPRA Official Website or review our MEPCO Tariff Guide for updated regulatory announcements.
Net Metering vs. Gross Metering: What is the Difference?
Net Metering (Self-Consumption First)
Your home consumes solar power directly first. Only excess electricity flows to the grid, and only deficit electricity is drawn from the grid. You offset high retail electricity tariffs directly, delivering the highest return on investment for residential and commercial users.
Gross Metering (Sell All, Buy All)
All solar power generated by your panels is exported to the grid at a fixed wholesale purchase price, while 100% of your property's electricity consumption is purchased back from MEPCO at standard retail slab rates.
Frequently Asked Questions About MEPCO Net Metering
Who is eligible for MEPCO net metering in South Punjab?
Any 3-phase domestic, commercial, industrial, or agricultural MEPCO consumer with a sanctioned load matching or exceeding their solar system capacity (minimum 3 kW up to 1 MW) is eligible across all 13 MEPCO circles.
What is the maximum solar capacity I can install?
Your solar inverter system capacity cannot exceed 100% of your sanctioned load limit (printed on your monthly bill). If you wish to install a larger solar array, you must first apply for an extension of sanctioned load at your MEPCO Sub-Divisional office.
How long does the green meter installation take?
The end-to-end process generally takes between 30 to 60 business days from initial application submission to green meter energization, depending on demand notice verification and equipment availability.
What happens if my solar export units exceed import units?
Surplus export units roll over to lower your electricity bill in future months. Financial settlement of unadjusted surplus units occurs at quarterly intervals in accordance with NEPRA rules.
Does net metering work during grid load-shedding / power outages?
Standard grid-tied inverters automatically shut down during grid power outages for utility line-worker safety (anti-islanding). To maintain power during outages, you need a hybrid solar inverter system paired with lithium or tubular battery storage.
Need to check your current MEPCO electricity bill?
Verify your current consumer status, reference number, or monthly consumption before applying for net metering.