Solar net-metering accounts for 15pc of Lesco supply

LAHORE: Solar net-metering now accounts for 15 per cent of the Lahore Electric Power Supply Company’s (Lesco) power demand.

Until March 2024, the installation of rooftop solar net-metering in areas under Lesco, one of the largest power utilities in the country, reached 500.2MW, which is about 15 per cent of the current peak summer demand of approx. 3500MW. It is well over the national share of less than 2.0 per cent in the overall peak power supply to the national grid.

If standalone solar plants in residential sectors and other consumer categories, including commercial and industrial, are also factored in, estimates suggest that electricity generation from solar may surpass 20 per cent of the total demand in areas under Lesco alone.

Power generation from solar PV technology has gained momentum due to multiple reasons. In the Lesco areas, 30,280 consumers have opted for solar net-metering. Until March 2024, 33,843 solar net-metering applications were submitted for the installation of 542.3MW solar panels, and it is fairly good processing rate that most of them have been hooked with the power grid.

It is worth mentioning here that despite capacity addition, Pakistan has been grappling with an energy crisis for several years due to the stubbornly widening gap between demand and supply. The current energy demand in the country surpasses generation capacity, resulting in a shortfall of 5,000MW. Consequently, load-shedding and power outages have become significant challenges.

More worryingly, the power tariff has been hiked to an extent that it is no longer affordable for many consumers. Corruption on the part of distribution companies has resulted in rampant overbilling, which has forced consumers to find some relief from independent solar power generation setups.

Fortunately, the federal government is actively encouraging investment in small-scale distributed solar energy generation. Net-metering is an electricity policy designed for consumers who own or plan to install a solar energy system. This policy enables them to generate electricity from solar power for their consumption and feed any excess electricity back into the national grid. This excess electricity can be used to offset units consumed during off-peak hours or when the solar energy system is unable to meet the consumer’s demand. Consequently, consumers may benefit from reduced utility bills or even receive payment for the surplus energy exported to the grid, as outlined in the agreement with the relevant power distribution company.

Considering the rising demand for solar net-metering, potential customers have complained that they are still not benefiting much because they are facing difficulties in getting a net-metering facility installed. People are facing problems in acquiring green metres, which are in short supply. In many cases, people have to wait for months for getting a green metre installed at their premises.

According to a Lesco official, the process of installation of green metres is currently being fully monitored, and a separate desk has been set up to address customer complaints. He added that the condition of installing smart metres for solar net-metering consumers has been withdrawn, and now green metres can be installed instead, which are available. He assured that all possible efforts are being made to facilitate consumers for the installation of solar net-metering.