Gross Metering vs Net Metering

A detailed comparison of net metering and the proposed gross metering system in Pakistan and what it means for solar panel owners.

If you're thinking about installing a solar system to offset your rising Mepco bill, you must understand the changing regulatory landscape. The government is actively discussing a shift from "Net Metering" to "Gross Metering". But what does this mean for your wallet?

Net Metering vs. Gross Metering

Net Metering (Current)

  • 1:1 Unit Exchange: The units you export to the grid directly cancel out the units you consume.
  • Bill Reduction: You only pay for the "net" difference. E.g., Use 500, Export 400 = Pay for 100.
  • Highest ROI: Recovers your solar investment much faster.

Gross Metering (Proposed)

  • Two Separate Tariffs: You buy electricity at high retail rates, but sell solar power at lower wholesale rates.
  • Higher Bills: You are billed heavily for whatever you consume from the grid.
  • Lower ROI: Solar becomes less financially lucrative for residential units.

Currently, Net Metering allows residential users to essentially spin their meter backward, acting as a massive buffer against high tariff rates. Under Gross Metering, all solar electricity generated is pushed straight to the grid and compensated at a fixed, lower rate, while whatever you locally consume is billed at the standard high rate on your Mepco bill.

Why the Shift?

The core issue revolves around "capacity charges" paid to Independent Power Producers (IPPs). As more upper-middle-class homes switch to solar and drop off the grid, the financial burden of these fixed capacity charges falls disproportionately on lower-income households. The proposed gross metering policy aims to force solar users to still contribute financially to the grid's upkeep.

What Should You Do?

If you have been delaying, now is the time to apply for a solar new connection upgrade while Net Metering is still legally available for new applicants. Contracts signed now are often grandfathered in for a set period (usually 3-7 years) before any mandatory policy shift occurs.

About This Guide

Verified Content
๐Ÿ‘ค
MEPCOBILL.PK Editorial Team
Consumer Utility Researchers, South Punjab

Our team of consumer utility researchers based in Multan has been monitoring MEPCO billing systems, NEPRA tariff changes and consumer rights since 2020. All information on this site is cross-checked against official MEPCO, PITC and NEPRA sources before publication.

Sources: mepco.com.pk ยท PITC
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