HESCO Net Metering Application Guide: How to Apply for Solar in Hyderabad

Key Takeaways

• The application procedure for net metering in HESCO's service territory is largely set by the National Electric Power Regulatory Authority (NEPRA) Prosumer Regulations, 2026.
• For distributed generation facilities of 25 kW or less, the NEPRA concurrence fee is Nil, as specified in S.R.O. 709 dated 28 April 2026.
• HESCO specifically limits net metering to 3-Phase Domestic, Commercial, and Industrial Consumers with a sanctioned load of 1KW to 10KW.
• We read the NEPRA Prosumer Regulations (S.R.O. 251(I)/2026), its amendments (S.R.O. 1330(I)-2026), the NEPRA fee schedule (S.R.O. 709), and HESCO's net metering document on 26 August 2026.

How do I apply for net metering with HESCO?

You apply for net metering with HESCO by submitting an application and required documents to their office, following the procedure outlined in HESCO's Net Metering SOP and the National Electric Power Regulatory Authority (Prosumer) Regulations, 2026. This process includes technical review, agreement signing, and installation of metering equipment.

What HESCO Net Metering Actually Is

Net metering allows you, as a prosumer, to generate your own electricity, typically from solar panels, and connect your system to HESCO's distribution network. When your system produces more electricity than you consume, the excess is exported to the grid. When you consume more than you produce, you import electricity from HESCO. This arrangement is governed by a net billing mechanism, where exports are purchased by HESCO and imports are billed to you.

HESCO, the Hyderabad Electric Supply Company, is a Distribution Company (DISCO) responsible for distributing electric power within its service territory, which includes the Hyderabad region. HESCO allows 3-Phase Domestic, Commercial, and Industrial Consumers with a sanctioned load of 1KW to 10KW to sell excess power. The capacity of your proposed distributed generation facility must not exceed the sanctioned load of your premises.

The core framework for net metering in Pakistan, including the definition of a "distributed generation facility" (up to 1 MW using solar, wind, or biogas) and a "prosumer," is established by the National Electric Power Regulatory Authority (NEPRA) through its Prosumer Regulations, 2026 (S.R.O. 251(I)/2026), effective from February 9, 2026. These regulations apply nationwide to all DISCOs, including HESCO.

The HESCO Net Metering Application Process

The application process for net metering with HESCO involves several steps, combining national regulations with HESCO's specific procedures.

1. Submit Application: You must submit an application (as specified in Schedule-II of the Regulations) along with necessary documents to HESCO's competent office.
2. Information Review: HESCO will review your application. If any information or documents are missing, you must provide them to HESCO's Office within seven working days of being informed.
3. Initial Technical Review: HESCO will complete an initial technical review of your proposed facility within twenty working days.
4. Feasibility Decision:

• • If the facility is not technically feasible, HESCO will return your application and communicate the reasons within three working days after the initial review.
  • If the facility is deemed technically feasible and you qualify as a Distributed Generator, HESCO and you will enter into an Agreement (as per Schedule-I of regulations) within ten working days.

5. NEPRA Notification: HESCO will send a copy of the signed Agreement to the NEPRA Authority within seven working days of its signing.
6. License Application Forwarding: HESCO will forward your application for a license (Schedule-III) to NEPRA, along with the Agreement, an application for exemption (Schedule-IV), evidence of fee deposit (Schedule-V), and an affidavit (Schedule-VI).
7. Connection Charge Estimate: Within seven working days of the Agreement's execution, HESCO will issue a Connection Charge Estimate for the proposed interconnection facility up to the Interconnection Point, including metering installation.
8. Payment: You must make the payment of the Connection Charge Estimate within twenty days of its issuance.
9. Installation and Commissioning: HESCO will install and commission the proposed interconnection facility within thirty days of receiving your payment. Net metering will commence upon NEPRA granting the license to you as the Distributed Generator.

For distributed generation facilities of 25 kW or below, you are not required to seek concurrence from NEPRA directly; HESCO will accord its approval, as per S.R.O. 1330(I)-2026, dated 06 August 2026. However, for facilities above 25 kW, NEPRA concurrence is required. If you fail to commence distributed generation within six months of the grant of concurrence, you will need to obtain fresh concurrence.

The agreement between you and HESCO will have an initial term of five years from the commissioning date of your distributed generation facility. This agreement can be renewed for subsequent five-year terms with mutual consent. For a deeper understanding of the regulatory framework, you can refer to our guide on the NEPRA Prosumer Regulations 2026 in Plain Urdu & English.

Documents and Fees

The application for net metering with HESCO involves specific documents and fees, some of which are nationally mandated by NEPRA and others that may be specific to HESCO.

Required Documents

The HESCO Net Metering SOP states that you need to submit an application (Schedule-II of Regulations) along with necessary documents. While the specific list of "necessary documents" is not detailed in the HESCO document provided, it typically includes:

• Application form (Schedule-II)
• Agreement (Schedule-I, signed after initial review)
• Application for exemption (Schedule-IV, if applicable)
• Affidavit by Distributed Generator (Schedule-VI)
• Evidence of fee deposit (Schedule-V)

Fees and Costs

The NEPRA concurrence fees are effective from February 9, 2026. You are responsible for all costs associated with interconnection facilities up to the interconnection point, including metering installation. If HESCO does not have meters available, you may procure them directly, subject to testing by HESCO before installation.

What is Set Nationally and What is Not

Understanding the distinction between national regulations and DISCO-specific rules is crucial for net metering applicants.

Nationally Set Rules (by NEPRA):

• Regulatory Framework: The fundamental rules for net metering (now net billing) are established by the National Electric Power Regulatory Authority (Prosumer) Regulations, 2026 (S.R.O. 251(I)/2026).
• Eligibility: General eligibility criteria for applicants (3-phase 400V or 11kV domestic, commercial, industrial, agricultural, general services consumers) are set by NEPRA.
• Capacity Limit: The national rule states that the distributed generation facility's capacity shall not exceed the sanctioned load of the applicant’s premises.
• Concurrence Fees: The fees for NEPRA concurrence are uniform across Pakistan. For facilities 25 kW or less, the fee is Nil. For facilities above 25 kW, it is Rs. 1000/- per kW, as per S.R.O. 709, dated 28 April 2026.
• Concurrence Exemption: The exemption for facilities 25 kW or below from direct NEPRA concurrence is a national amendment (S.R.O. 1330(I)-2026).
• Net Billing Mechanism: The method of billing, where electricity supplied by the licensee is billed at the applicable tariff and electricity supplied by the prosumer is billed at the national average energy purchase price, is a national standard. This is a significant change from the previous net metering regime; for more details, see our guide on Net Metering vs. Net Billing Pakistan.
• Metering Requirements: The requirement for equipment capable of accurately measuring electricity flow in two directions is national.
• Protection Requirements: Standards for protection and control diagrams, manual disconnect devices, and inverter compliance (e.g., UL 1741) are set by NEPRA.
• Term of Agreement: The initial five-year term for the agreement between the prosumer and the licensee is a national rule.

HESCO-Specific Rules and Practices:

• Service Territory: HESCO operates specifically in the Hyderabad region.
• Sanctioned Load Band: HESCO specifically allows 3-Phase Domestic, Commercial, and Industrial Consumers with a sanctioned load of 1KW to 10KW to sell excess power. This is a narrower band than the general NEPRA eligibility.
• Load Flow Study Threshold: While NEPRA requires a load flow study for facilities of 250 kW or above, HESCO makes it compulsory for distributed generators with an installed capacity of more than 10 KW.
• Distribution Transformer Capacity: HESCO states that if the accumulative capacity of allowed Distributed Generators reaches 80% of the loading capacity of an installed distribution transformer, new agreements will be signed subject to the new distributed generator covering the cost of augmenting the existing transformer. NEPRA's general rule states the licensee shall not entertain any application if this 80% limit is reached.
• Application Timelines: While NEPRA sets general timelines, HESCO's specific SOP outlines slightly different durations for certain steps, such as initial review within twenty working days (NEPRA: fifteen working days) and applicant payment within twenty days (NEPRA: seven working days).
• Tariff Information: HESCO publishes its own tariff rates, which determine the cost of electricity you import. You can find more information on how tariffs affect your solar savings in our Electricity Slab Tariffs Explained guide.
• Safety Guidelines: HESCO provides general electrical safety tips on its website, covering topics like appliance use, fuses, circuit breakers, and rainy season precautions.

Other DISCOs, such as LESCO, also follow the national regulations but have their own specific local procedures and service areas. You can find more information on other DISCOs, including the LESCO Net Metering Application Guide, on our site.

What the Published Rules Do Not Tell You

While the NEPRA regulations and HESCO's documents provide a clear framework, some details remain unaddressed or are subject to change:

• National Average Energy Purchase Price: The exact value of the "national average energy purchase price" at which HESCO will purchase your exported electricity is not provided in the documents we reviewed. This figure is crucial for calculating the financial benefits of net billing.
• Comprehensive Document List: HESCO's SOP mentions submitting "necessary documents" with the application, but a detailed, exhaustive list of these documents is not explicitly provided in the HESCO net metering document.
• Other Costs: Beyond the NEPRA concurrence fee and HESCO's connection charge estimate, the documents do not provide a comprehensive account of all other potential costs you might encounter, such as inverter certification, system inspection fees, or any other charges from third-party service providers.
• HESCO's Area of Operation: While implied to be the Hyderabad region, the precise geographical boundaries of HESCO's service territory are not explicitly defined in the provided HESCO pages.
• Online Application Portal: The documents do not specify if HESCO offers an online portal for submitting net metering applications or tracking their status.
• Dispute Resolution Process: While NEPRA's regulations imply that disputes would go to the Authority, the specific steps for resolving disagreements with HESCO regarding net metering are not detailed in the provided materials.