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What Is Net Metering?

May 13, 2025

Saba Asif

What Is Net Metering?

Net metering is a billing system that allows homeowners, businesses, and institutions with solar panels (or other renewable energy sources) to send excess electricity back to the power grid and receive credit on their electricity bills.

How Does It Work?

When your solar system generates more electricity than you consume, the extra power is exported to the utility grid. In exchange, you receive credits. Later, when your system doesn’t produce enough—like during nighttime—you can use those credits to reduce your electricity bill.

For example, if your solar panels produce 500 kWh in a month and you only consume 400 kWh, the remaining 100 kWh goes to the grid. Your next bill reflects this credit, lowering your total charges.


Benefits of Net Metering

Reduced Electricity Bills – Pay only for your net energy usage.
Faster Return on Investment – Speeds up your solar payback period.
Supports Clean Energy – Encourages renewable energy adoption.
Grid as Virtual Storage – No need for expensive battery systems.


Where Is Net Metering Available?

Availability and policies differ by region. In Pakistan, net metering is supported by DISCOs like FESCO, making it easier for solar panel users to benefit from the system. For details related to FESCO’s billing and electricity services, you can visit fescoebill.com.pk — a reliable platform to check bills and stay updated.

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Saba Asif