TESCO Net Metering Application Guide (Pakistan)

Key Takeaways

• The core net metering application procedure for TESCO customers is set nationally by NEPRA, not by TESCO itself.
• For distributed generation facilities of 25 kW or less, there is no fee for the concurrence application.
• Your solar system's capacity cannot exceed your sanctioned load, and TESCO will not process applications if the local distribution transformer is already at 80% distributed generation capacity.
• We read the NEPRA Prosumer Regulations 2026 (S.R.O. 251(I)/2026) and related S.R.O.s 1330(I)-2026 and 709, effective February 9, 2026, for this guide.

What is TESCO Net Metering?

TESCO net metering allows customers in the Tribal Areas to generate their own electricity, primarily from solar, and connect it to the Tribal Electric Supply Company (TESCO) grid. This arrangement is governed by the National Electric Power Regulatory Authority (Prosumer) Regulations, 2026, which came into force on February 9, 2026. Under these regulations, you become a "prosumer," meaning you both consume electricity from and supply electricity to the grid.

TESCO is one of Pakistan's Distribution Companies (DISCOs), responsible for distributing electric power within its service territory, which includes the Tribal Areas. While TESCO implements the net metering framework, the overarching rules, procedures, and billing mechanisms are established by NEPRA for all DISCOs. For a full explanation of the national framework, refer to our guide on the NEPRA Prosumer Regulations 2026 in Plain Urdu & English.

Understanding Net Metering in TESCO's Territory

Net metering in TESCO's service area operates under the national framework defined by NEPRA. This means the eligibility criteria, application process, and billing arrangements are largely consistent across Pakistan, as mandated by the regulator.

Who can apply?

You are eligible to apply for net metering with TESCO if you are a 3-phase 400V or 11kV domestic, commercial, industrial, agricultural, general services consumer, or a single point bulk supply consumer of TESCO.

What kind of system can you install?

You can install a distributed generation facility (DG facility) using solar, wind, or biogas energy resources. The maximum capacity for such a facility is 1 MW. The capacity of your proposed DG facility must not exceed the sanctioned load of your premises. NEPRA may revise this capacity at any time through a notification.

Important Restrictions

• Transformer Capacity: TESCO will not entertain any application if the distributed generation capacity connected to a particular distribution transformer has reached 80% of its rated capacity.
• Load Flow Study: 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 TESCO or any consultant registered with the Pakistan Engineering Council.

The TESCO Net Metering Application Process

The application process for net metering with TESCO follows the steps outlined in the NEPRA Prosumer Regulations, 2026. These steps are designed to ensure a standardized and transparent procedure across all DISCOs in Pakistan.

1. Submit Your Application: You must submit a complete application to TESCO. The application should include all necessary documents as specified by the regulations.
2. Completeness Check: Within five working days of receiving your application, TESCO will acknowledge its receipt and inform you if the application is complete. If any information or documents are missing, you must provide them to TESCO within three working days of being informed.
3. Initial Review: TESCO will complete an initial review of your application within fifteen working days.
4. Feasibility Decision: If the initial review shows that your proposed facility is not technically feasible, TESCO will return your application and communicate the reasons within three working days after the review.
5. Sign Agreement: If your application is feasible, TESCO and you will enter into an agreement within seven working days. TESCO will then send a copy of this agreement to NEPRA within seven working days of its signing.
6. Concurrence:

• • If your distributed generation facility is 25 kW or below, you are not required to seek concurrence from NEPRA. TESCO will accord its approval directly. This exemption is effective from August 6, 2026, as per S.R.O. 1330(I)-2026.
  • If your facility is above 25 kW, TESCO will forward your application to NEPRA for concurrence. NEPRA may accord concurrence within seven working days after receiving all requisite documents.
  • If you fail to commence distributed generation within six months of the grant of concurrence, you will need to obtain fresh concurrence.

7. Connection Charge Estimate: Within seven working days of the agreement's execution, TESCO will issue a connection charge estimate for the proposed interconnection facility, including metering.
8. Payment: You must make the payment for the connection charge estimate within seven working days of its issuance.
9. Installation and Commissioning: TESCO will install and commission the proposed interconnection facility within fifteen working days of your payment.
10. Commence Net Metering: Net metering arrangements will commence once the facility is commissioned and, if applicable, concurrence is granted by NEPRA.

Fees and Costs for Net Metering in TESCO Territory

The fees for net metering applications are set by NEPRA and apply uniformly across all DISCOs, including TESCO. Other costs are your responsibility as the prosumer.

What is Set Nationally and What is TESCO-Specific

It is important to understand which aspects of net metering are universal across Pakistan and which pertain specifically to TESCO.

Nationally Set (by NEPRA):

• Application Procedure: The step-by-step process for applying for net metering, including timelines for review, agreement signing, and commissioning, is mandated by the NEPRA Prosumer Regulations 2026.
• Eligibility Criteria: The definition of an eligible applicant (e.g., 3-phase 400V or 11kV consumers) and the maximum DG facility capacity (up to 1 MW, not exceeding sanctioned load) are set by NEPRA.
• Fees: The concurrence application fees (Nil for 25 kW or less, Rs. 1,000 per kW above 25 kW) are uniform across all DISCOs, as notified by NEPRA S.R.O. 709.
• Billing Mechanism: The net billing arrangement, where imports are billed at the applicable tariff and exports at the national average energy purchase price, is a national standard. For more details on this, see our guide on Net Metering vs. Net Billing Pakistan: What Changed Feb 2026.
• Agreement Term: The initial five-year term and renewal conditions for the net metering agreement are set by NEPRA.
• Concurrence Exemption: The exemption for facilities 25 kW or below from requiring NEPRA concurrence is a national rule.

TESCO-Specific:

• Service Territory: TESCO exclusively serves the Tribal Areas of Pakistan.
• Tariffs: While the billing mechanism is national, the specific tariffs for different consumer categories (e.g., domestic, commercial, industrial) that TESCO applies for imported electricity are determined by NEPRA for TESCO. You can find TESCO's tariff decisions and notifications published by NEPRA. Understanding your specific tariff category is crucial; our guide on Electricity Slab Tariffs Explained can help.
• Local Implementation: TESCO is responsible for the local implementation of the national regulations, including receiving applications, conducting technical reviews, installing interconnection facilities, and issuing connection charge estimates within its operational area.
• Recorded Concurrences: NEPRA publishes records of distributed generation concurrences granted to prosumers within TESCO's service area, such as those for Safeer Ullah, Deputy Director Works, and Hassan Khan. These records confirm active net metering arrangements in TESCO's territory.

For comparison with other DISCOs, you may refer to guides such as the LESCO Net Metering Application Guide.

What the Published Rules Do Not Tell You

While the NEPRA Prosumer Regulations 2026 provide a comprehensive framework, certain specifics are not explicitly detailed in the publicly available documents we reviewed:

• TESCO's Own Net Metering Documents: We did not find specific net metering documents or detailed Standard Operating Procedures (SOPs) published directly by TESCO on their website. The process is primarily derived from NEPRA's national regulations.
• National Average Energy Purchase Price: The exact, current value of the "national average energy purchase price" at which TESCO purchases your exported electricity is not provided in the regulations. This value is subject to change and is typically determined by NEPRA periodically.
• Application Forms: While the regulations refer to schedules for application forms, the specific forms for TESCO were not found on the provided links. Applicants should contact TESCO directly for the most current forms.
• Other Potential Costs: Beyond the NEPRA concurrence fee and the prosumer's responsibility for interconnection and distribution system improvement costs, the documents do not detail every other potential cost a prosumer might encounter, such as specific meter testing fees if you procure your own meter.
• Detailed Technical Requirements: While the regulations state that protection and control diagrams must be approved by the licensee and equipment must comply with international standards (e.g., UL 1741, IEEE 1547), highly detailed technical specifications for TESCO's grid interconnection were not found. Prosumers should consult TESCO's engineering department for precise technical requirements.