KEL launches net metering service

KARACHI: K-Electric Limited (KEL) has launched net metering facility that allows consumers to sell surplus electricity, generated through renewable sources, back to the utility and save money on power bills, officials said on Monday.

“The distribution companies in the country are not very bullish on this move as the actual renewable distributed generation is overhyped,” a source at the power utility said reacting to the development. The concept, he explained, wasn’t new, but recent regulations and a boom in solar panel industry had resulted in a net metering hype.

Earlier, a spokesman told The News that the KEL had officially introduced net metering in Karachi. “We have initiated the process to accept applications in this regard from our valued customers,” the spokesperson said. The company representative added that all the requisite information and application process details will be made available on KE's website shortly to facilitate customers interested in this facility.

Initially, distributors were reluctant to introduce the system. Subsequent to constitution of relevant regulations, Islamabad Electric Supply Company (IESCO) took the lead and started offering this facility to its consumers and subsequently other distribution companies followed the suit.

KEL spokesman said that the utility aligned itself with other distribution companies and conducted a research to find the uptake of electric consumers. On the other hand, the sources at the KEL said there was a lot of interest about net metering, but the actual growth was quite nominal, primarily because of strict safety regulations and investment, which the intending consumers were required to incur in installing solar/wind generation systems.

Moving ahead, the KEL spokesperson noted that as per international research papers, at best only 20 percent electricity produced by solar was exported back to the grid. “Case studies on Tata power (Delhi) and net-metering in Dubai point out that the actual number is in fact much lower,” the sources said.

Adding to his argument, the source informed The News that IESCO received approximately 90 net metering applications, of which only 20 connections were approved, which could feed 1600KW back into the grid, whereas Lahore Electric Supply Company (LESCO) received 30 applications, of which fewer were approved that could feed 500KV. “Growth across the world in solar powered net metering is patchy and quite small,” the source added.

The sources continued the net-metering was not beneficial for common household consumers and it should be marketed to large organisations and companies such as universities, business houses, and public sector organisations, which were chronically defaulting on their power bills payments.

NEPRA in September 2015 issued its net metering regulations that allow the distribution companies to purchase excess units of electricity produced by the consumers, and net them off against the units consumed from the grid. The regulations are in force and distributors are offering the facility, but the growth is quite nominal and patchy.