← All Posts  ·  June 24, 2026

How Solar Net Metering Changes Your MEPCO Bill

How Net Metering Changes Your Monthly MEPCO Bill

Installing solar with net metering fundamentally changes how your MEPCO bill is calculated. Instead of paying for all units consumed from the grid, you only pay for the net units — the difference between what you consume from the grid and what you export to it.

Before Net Metering – Standard Bill Example

Without solar, a consumer using 400 units pays approximately:

  • Energy charges (400 units × Rs. 20.46): Rs. 8,184
  • Fixed charges: Rs. 150
  • FPA and FC surcharge: Rs. 1,500
  • GST 18%: Rs. 1,776
  • Other taxes: Rs. 200
  • Total bill: Approximately Rs. 12,000

After Net Metering – With 5 kW Solar System

With a 5 kW solar system generating approximately 600 units per month:

  • Total units consumed: 400
  • Solar units generated: 600
  • Self-consumed solar: 400 units (consumed during the day)
  • Exported to grid: 200 units
  • Net import from grid: 0 units (with 200 units export credit)

Your bill would show:

  • Import: 400 units
  • Export: 600 units (or more, depending on usage pattern)
  • Net: 200 units export credit
  • You owe nothing — MEPCO owes you a credit

Understanding Your Net Metering MEPCO Bill

Your bill after net metering activation will look different:

  • A new section showing Import (kWh) and Export (kWh)
  • The bi-directional meter number replaces your old meter number
  • Net charges are calculated on net units only
  • Monthly export credits are carried forward if not fully offset
  • Fixed charges are still payable even with zero net consumption

What Happens When You Export More Than You Import?

If your solar generates more than you consume in a month (net export):

  • The export credit is carried forward to the next month
  • This is common in winter when AC usage drops but solar generation is still decent
  • Excess credits can offset higher summer bills
  • Annual settlement terms depend on your net metering agreement

Fixed Charges Still Apply

Even with net metering and zero net units consumed, you will still see fixed charges (Rs. 75–150) on your bill. This is because fixed charges cover your connection to the grid infrastructure, not your energy consumption.

Real Annual Savings Estimate

For a typical MEPCO household in South Punjab using 350–450 units per month with a 5 kW solar system:

  • Annual electricity cost before solar: Rs. 120,000–160,000
  • Annual electricity cost after solar: Rs. 5,000–15,000 (fixed charges only)
  • Annual saving: Rs. 100,000–150,000
  • Solar system cost: approximately Rs. 600,000–750,000 for 5 kW
  • Payback period: 4–6 years

Frequently Asked Questions (FAQ)

Q: Will I always get a zero bill with solar net metering?

A: It depends on your system size vs consumption. A well-sized system can bring bills to near zero, but fixed charges will always remain. During high-consumption months, you may still have a small bill.

Q: Does MEPCO pay cash for excess export?

A: Under current MEPCO net metering policy, excess export credits are carried forward as billing credits. Cash payment for net export may apply in certain circumstances — check your net metering agreement for terms.

Q: Can I upgrade my solar system after getting net metering approved?

A: Any significant increase in solar system capacity requires an updated application and MEPCO re-inspection. You cannot simply add more panels beyond the approved capacity without formal approval.

📖 Related Articles