Net metering allows solar system owners to sell surplus electricity back to FESCO and have it credited against their consumption. With Faisalabad generating 5.3 peak sun hours per day, a properly sized solar system can generate surplus electricity during daylight hours that gets exported to the grid — reducing your bill or even resulting in a credit.
This guide covers the complete FESCO net metering process as of 2026, based on our experience handling 200+ net metering applications in Faisalabad.
What Is Net Metering?
Under NEPRA Net Metering Regulations 2015 (SRO 892), any consumer with a solar system can install a bi-directional meter. When solar generation exceeds your consumption, surplus units flow to the FESCO grid and are credited to your account at the regulated buyback rate. When you consume more than you generate, you draw from the grid and are charged at normal tariff rates.
The net effect is calculated on each billing cycle. If your exports exceed imports in a given month, the credit carries forward to the next month indefinitely.
Net Metering Eligibility in Faisalabad
- You must be a FESCO consumer (residential, commercial, or industrial)
- Your solar system must not exceed your sanctioned load
- The solar system must use a NEPRA-approved inverter with anti-islanding protection
- The system must be installed by a licensed EPC contractor
- For industrial 3-phase, additional 3-phase metering requirements apply
Step-by-Step FESCO Net Metering Process
Solar System Installation
First, install your solar system. The inverter must have anti-islanding protection (all approved Solis, Huawei, and FoxESS inverters include this). Keep all invoices and warranty cards — they're needed in the documentation stage.
Timeline: Completed before applying. Our installations typically take 3–5 days for residential, 10–15 days for industrial.
Prepare Documentation
Compile the required documents (see full list below). The technical documents — single line diagram, inverter specifications, and installation certificate — are prepared by your EPC contractor. Saigal Solar prepares all technical documentation as part of our installation service.
Timeline: 2–5 days to compile. We prepare the technical docs during installation.
Submit Application to FESCO DG&A
Submit the complete application to FESCO's Directorate General (Accounts) office. FESCO has designated net metering desks in Faisalabad. The application must include all required documents — incomplete applications are returned.
Timeline: Application submission takes 1 day. FESCO acknowledges within 7–10 business days.
FESCO Technical Review
FESCO's technical team reviews your application, verifies the inverter model against their approved list, and may conduct a site inspection for industrial applications or systems above 25kW. They check that the installed capacity does not exceed your sanctioned load.
Timeline: 2–4 weeks. NEPRA mandates FESCO process net metering applications within 30 days.
Bi-Directional Meter Installation
Once approved, FESCO installs the bi-directional (net) meter at your premises. This replaces your existing single-direction meter. The cost of the net meter (approximately Rs. 15,000–25,000) is paid by you.
Timeline: Meter installation within 15 days of approval.
Activation and Net Metering Agreement
After meter installation, FESCO signs a Distributed Generation (DG) agreement with you specifying terms, buyback rate, and billing cycle. Your next bill will show import and export readings separately — net billing begins from this point.
Timeline: Agreement signed within 7 days of meter installation. Total process: 6–10 weeks from application.
Documents Required for FESCO Net Metering
| Document | Prepared By | Notes |
|---|---|---|
| Application form (FESCO DG-1) | EPC contractor | Available from FESCO office or online |
| CNIC copy (consumer) | Consumer | Front and back |
| Latest FESCO bill copy | Consumer | Show sanctioned load |
| Single Line Diagram (SLD) | EPC contractor | Must show PV system + grid connection |
| Inverter specifications / datasheet | EPC contractor | Must be NEPRA-approved model |
| Panel specifications / datasheet | EPC contractor | Manufacturer specs with model numbers |
| Installation certificate | Licensed EPC contractor | Signed and stamped |
| Net metering agreement draft | EPC contractor | FESCO provides template |
| Bank guarantee (industrial only) | Consumer | For systems above 1MW only |
FESCO Net Metering Buyback Rate 2026
The current FESCO net metering buyback rate is approximately Rs. 27/unit. This is the "Reference Tariff" set by NEPRA, which represents the avoided cost of grid electricity generation. This rate is significantly lower than the consumption tariff (Rs. 35–50/unit for residential), which is why designing your solar system to avoid over-generation is important — the sweet spot is 80–90% solar offset, not 100%.
2026 Policy Note: Net Metering Rates Remain Stable
In late 2025, the government proposed reducing net metering buyback rates. Following protests from the solar industry and PM-level intervention, the rates were maintained at the regulated Reference Tariff. As of Q1 2026, no changes to net metering rates have been implemented. However, policy can change — contact us for the most current status before designing your system.
Net Metering Costs Summary
- FESCO application fee: None (application is free)
- Bi-directional meter cost: Rs. 15,000–25,000 (you pay)
- Net metering application service (via Saigal Solar): Included in EPC contract
- Total out-of-pocket for net metering: Rs. 15,000–25,000 for the meter only