PESCO Net Metering Application Guide

Key Takeaways

• The core net metering application procedure and billing rules are set nationally by NEPRA, not by PESCO.
• For distributed generation facilities of 25 kW or less, the NEPRA concurrence application fee is Nil. For facilities above 25 kW, a one-time fee of Rs. 1000/- per kW is payable to NEPRA.
• The capacity of your proposed distributed generation facility cannot exceed the sanctioned load of your premises.
• We read the NEPRA Prosumer Regulations 2026 (S.R.O. 251(I)/2026, S.R.O. 1330(I)-2026) and the Fee Schedule (S.R.O. 709) effective on or before August 26, 2026.

What is PESCO Net Metering?

Net metering in PESCO's territory allows eligible consumers to generate their own electricity, primarily from solar, wind, or biogas, and feed any excess back into the grid. This arrangement, governed by the National Electric Power Regulatory Authority (NEPRA) Prosumer Regulations, 2026, enables you to receive credit for the electricity you export, reducing your overall electricity bill. PESCO, as the Distribution Company (DISCO) serving the Peshawar region, facilitates this process for its consumers.

Understanding Net Metering in PESCO's Territory

The framework for net metering in Pakistan, including in areas served by the Peshawar Electric Supply Company (PESCO), is established by the National Electric Power Regulatory Authority (NEPRA) under the National Electric Power Regulatory Authority (Prosumer) Regulations, 2026. These regulations came into force on February 9, 2026.

A "prosumer" is an applicant who has entered into an agreement with a licensee like PESCO for distributed generation. A "distributed generation facility" (DG facility) uses solar, wind, or biogas resources to generate electricity up to 1 MW.

Eligibility for Applicants: You are eligible to apply if you are a 3-phase 400V or 11kV domestic, commercial, industrial, agricultural, general services consumer, or a single point bulk supply consumer of PESCO.

Capacity Limits: The capacity of your proposed DG facility must not exceed the sanctioned load of your premises. NEPRA retains the right to revise this capacity at any time through a notification.

Distribution Transformer Capacity: PESCO will not entertain any application if the distributed generation capacity connected to a particular distribution transformer has already reached 80% of its rated capacity.

Concurrence Requirements: For DG facilities of 25 kW or below capacity, you are not required to seek concurrence from NEPRA; PESCO will accord its approval. For facilities above 25 kW, concurrence from NEPRA is mandatory. A fresh concurrence is needed for any modification in technical parameters or if generation does not commence within six months of the initial concurrence grant.

The National Net Metering Application Process

The application process for net metering in PESCO's territory follows the national procedure laid out by NEPRA. While PESCO is the local utility, the steps and timelines are largely standardized across Pakistan.

1. Submit Your Application: Submit your application to PESCO. Within five working days of receiving it, PESCO will acknowledge receipt and inform you if the application is complete. If any information is missing, you must provide it within three working days of being informed.
2. Initial Review: PESCO will complete an initial review of your application within fifteen working days.
3. Technical Feasibility Check: If the initial review finds that your proposed facility is not technically feasible, PESCO will return your application and communicate the reasons within three working days after the review.
4. Load Flow Study (if applicable): If your proposed DG facility has an installed capacity of 250 kW or above, you must conduct and submit a load flow study. This study can be carried out through PESCO or a consultant registered with the Pakistan Engineering Council.
5. Sign Agreement: If your application is feasible, PESCO and you will enter into an agreement within seven working days. PESCO will then send a copy of this agreement to NEPRA within seven working days of its signing.
6. Concurrence (if applicable): If your DG facility is above 25 kW, NEPRA may accord concurrence within seven working days after receiving the requisite documents. For facilities 25 kW or below, PESCO provides the approval directly.
7. Connection Charge Estimate: Within seven working days of the agreement's execution, PESCO will issue a connection charge estimate for the interconnection facility.
8. Payment and Installation: You must make the payment for the connection charge estimate within seven working days of its issuance. PESCO will then install and commission the proposed interconnection facility within fifteen working days of your payment.
9. Metering: The installed equipment for metering shall be capable of accurately measuring the flow of electricity in two directions. If two separate meters are installed, the energy metering calculation shall yield the same result as when a single meter is used.
10. Billing Commencement: Once the facility is commissioned and all requirements are met, net billing will commence.

For a detailed explanation of the regulations, you can refer to our guide on the NEPRA Prosumer Regulations 2026 in Plain Urdu and English.

Fees and Costs for PESCO Net Metering

The primary application fees for net metering are set by NEPRA and apply uniformly across all Distribution Companies, including PESCO.

It is important to note that while the NEPRA concurrence fee is clearly defined, you will also be responsible for the costs of your distributed generation facility itself, the interconnection equipment, and potentially any necessary upgrades to PESCO's distribution system directly attributable to your installation.

What is set nationally and what is specific to PESCO

It is crucial to understand that the fundamental rules and procedures for net metering are national, established by NEPRA, and apply to all Distribution Companies (DISCOs) in Pakistan, including PESCO.

Nationally Set Rules (NEPRA):

• Application Procedure: The step-by-step process for applying, including timelines for review, agreement signing, and installation, is defined in the NEPRA Prosumer Regulations 2026.
• Eligibility Criteria: Who can apply (e.g., 3-phase 400V or 11kV consumers) and the maximum capacity (up to 1 MW, not exceeding sanctioned load) are national standards.
• Fees: The concurrence application fees (Nil for 25 kW or less, Rs. 1000/- per kW above 25 kW) are set by NEPRA's Fee Schedule S.R.O. 709, effective from February 9, 2026.
• Net Billing Mechanism: The method of billing, where exports are valued at the national average energy purchase price and imports at the applicable tariff, is a national regulation. For more details on this, see our explainer on Net Metering vs. Net Billing Pakistan.
• Agreement Term: The initial term of the agreement between prosumer and licensee shall be five years with effect from date of commissioning of distributed generation facility, renewable for subsequent five-year terms with mutual consent.
• Metering Standards: Requirements for bi-directional metering and compliance with international standards for inverters (e.g., UL 1741, IEEE 1547, IEC 61215, EN) are set by NEPRA.

PESCO Specifics:

• Service Territory: PESCO (Peshawar Electric Supply Company) serves the Peshawar region. If you are not in this area, you would apply to a different DISCO, such as LESCO for Lahore or FESCO for Faisalabad.
• Local Implementation: While the procedure is national, PESCO is responsible for its local implementation, including receiving applications, conducting technical reviews, issuing connection charge estimates, and installing interconnection facilities within its service area.
• Tariffs: PESCO applies its specific consumer tariffs for the electricity it supplies to prosumers. The exact tariff rates are determined by NEPRA for PESCO, but the specific categories and charges are relevant to PESCO's billing.
• Concurrence Records: NEPRA's public records show specific net metering concurrences granted to individuals and entities within PESCO's service territory, such as Akhtar Muneer, Rafiullah Itezaz Khan, and Javed Iqbal, all dated August 18, 2026. These demonstrate active net metering in the region.

What the published rules do not tell you

While NEPRA provides a comprehensive regulatory framework, and we can confirm PESCO's involvement in net metering through NEPRA's records, certain specific details regarding PESCO's internal procedures and current tariff information are not readily available through official, accessible PESCO channels as of August 26, 2026.

• PESCO's Official Net Metering Procedure Page: The official PESCO website domains pesco.gov.pk did not resolve, and pesco.com.pk/net-metering returned a 404 error. This means PESCO's own detailed net metering procedure page could not be accessed to provide specific local guidelines or forms.
• PESCO's Current Tariff Information: We could not find direct links to PESCO's current tariff schedules on the provided PESCO-related links or NEPRA's PESCO net metering page. While NEPRA sets tariffs, the specific rates applicable to different consumer categories in PESCO's territory were not directly verifiable from the provided sources.
• National Average Energy Purchase Price: The exact value of the "national average energy purchase price," at which PESCO purchases exported electricity from prosumers, is not specified in the NEPRA Prosumer Regulations 2026. This value is dynamic and determined by NEPRA.
• Other Potential Costs: Beyond the NEPRA concurrence fee and the prosumer's responsibility for interconnection and system improvement costs, the documents do not provide a detailed breakdown of every other potential cost a reader might encounter, such as specific meter costs if procured from PESCO, or inspection fees.