ð Regulatory & Interconnection Handbook
Net Metering Regulations, Green Meters & Subsidies Across Asia
An authoritative guide to how bidirectional grid-tied solar systems connect to local distribution utilities, how exported units are credited against nighttime tariffs, and what direct financial subsidies are available across Asian electricity markets.
1. How Net Metering Works: Technical & Electrical Principles
Net Metering is a regulatory billing mechanism that credits distributed renewable energy generators (such as residential and commercial rooftop solar owners) for the electricity they add to the public grid.
During peak sunlight hours (typically 10:00 AM to 3:00 PM), a properly sized photovoltaic system often generates substantially more electricity than the home or building consumes. With a traditional mechanical or non-net electronic utility meter, this surplus power flows into the grid but may either be ignored or incorrectly billed as imported power.
Under a formalized Net Metering Agreement, the electric distribution utility installs a bidirectional smart meter. This meter tracks two separate energy registers:
- Import Register (Forward Units): Measures kilowatt-hours consumed from the utility grid during nighttime, overcast days, or when building demand exceeds solar output.
- Export Register (Reverse Units): Measures surplus kilowatt-hours pushed back into the distribution grid.
- Monthly Net Settlement: At the end of the billing cycle, the utility subtracts exported units from imported units. If Export > Import, the consumer receives a financial credit or unit roll-over against future bills.
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2. Pakistan - NEPRA Net Metering (Green Meter) Framework
Governed by NEPRA Distributed Generation Regulations 2015 / 2026
1:1 Unit Offset
Pakistan's distributed solar boom is regulated by the National Electric Power Regulatory Authority (NEPRA). Consumers of LESCO, IESCO, K-Electric, FESCO, MEPCO, GEPCO, PESCO, and HESCO can install systems from 1 kW up to 1 MW.
Mandatory Interconnection Prerequisites:
- Dedicated 3-Phase electricity connection in the applicant's name.
- AEDB-certified (Alternative Energy Development Board) installer certification.
- Type-tested on-grid/hybrid inverter with certified anti-islanding (IEC 62109 / UL 1741).
- Sub-5 Ohm copper grounding earth boring with professional continuity test report.
The 80% Distribution Transformer Rule:
NEPRA regulations cap cumulative solar export capacity on any neighborhood distribution transformer (PMT) at 80% of its rated kVA nameplate. If your local 200 kVA transformer already has 160 kW of approved solar connections, new net metering applications are waitlisted until transformer capacity is upgraded.
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3. India - PM Surya Ghar: Muft Bijli Yojana & State DISCOMs
National Rooftop Solar Portal (pmsuryaghar.gov.in)
Up to âđ78,000 Direct Subsidy
The Central Government's initiative provides direct Central Financial Assistance (CFA) deposited into the consumer's bank account via the Public Financial Management System (PFMS).
Subsidies by System Size:
- 1 kW System: âđ30,000 Direct CFA deposit.
- 2 kW System: âđ60,000 Direct CFA deposit.
- 3 kW to 10 kW+: âđ78,000 Maximum Capped CFA.
- ALMM List Requirement: Modules must be sourced from the MNRE Approved List of Models and Manufacturers with valid DCR certification.
Application Protocol:
- Register consumer account number on the National Portal.
- State DISCOM (e.g. BSES, TANGEDCO, MSEDCL, UPPCL) conducts online technical feasibility review.
- Installation by empanelled vendor using ALMM-compliant hardware.
- Inspection, bidirectional meter commissioning, and DBT bank subsidy credit within 30 days.
4. Asian Regional Net Metering & Subsidy Comparison Table
A side-by-side comparison of regulatory frameworks, capacity limits, and settlement mechanisms across our target Asian markets:
| Country |
Regulatory Agency |
Settlement Mechanism |
Capacity Limit |
Subsidies / Incentives |
| ðĩð° Pakistan |
NEPRA |
1:1 Energy Offset |
Up to 1 MW (Sanctioned Load) |
Zero sales tax on Tier-1 panels; Concessionary SBP solar loan lines. |
| ðŪðģ India |
MNRE / State SERCs |
Net Metering / Gross Metering |
Up to Sanctioned Load |
Direct CFA up to âđ78,000 via PM Surya Ghar portal. |
| ð§ðĐ Bangladesh |
SREDA / BPDB |
Net Energy Billing |
70% of Sanctioned Load (Max 3 MW) |
IDCOL low-interest concessional industrial loans for RMG factories. |
| ðĩð Philippines |
ERC / Meralco |
Avoided Cost Credit |
Up to 100 kW (QEU) |
Exempt from generation license; Pag-IBIG home solar loan financing. |
| ðŧðģ Vietnam |
EVN / MOIT |
Self-Consumption (Zero Export) / DPPA |
Exempt under 100 kW |
Direct Power Purchase Agreements (DPPA) for industrial parks. |
| ðŪðĐ Indonesia |
MEMR (ESDM) / PLN |
PLN Quota Self-Consumption |
Annual Regional Quota |
Capacity charge exemptions under Regulation No. 2/2024. |
| ðĶðŠ UAE |
DEWA (Shams Dubai) |
Net Billing Offset |
Building Connected Load |
Direct offset against high commercial utility tariff slabs. |
| ðēðū Malaysia |
SEDA / TNB |
1:1 True Offset (NEM Rakyat) |
4 kWp (1-Ph) / 10 kWp (3-Ph) |
NEM NOVA virtual wheeling for commercial and industrial users. |
5. Grid Safety Engineering: Anti-Islanding Protection (IEC 62116)
The most critical technical safety requirement for all grid-tied solar installations is Anti-Islanding Protection.
When a public utility grid experiences a fault or blackout, utility linemen must conduct physical repairs on transmission poles and step-down transformers. If rooftop solar inverters continued to pump electricity into the dead grid lines (creating an energized "island"), it would pose an immediate, fatal electrocution hazard to repair personnel.
Certified on-grid and hybrid inverters continuously monitor grid AC voltage frequency (50 Hz Âą 1 Hz) and impedance. The moment grid power drops, the inverter's internal relay switch disconnects the PV generator from the grid within less than 2.0 seconds in strict compliance with IEC 62116 and UL 1741 standards.