Gross Metering vs Net Billing
Gross Metering vs Net Billing What’s the Difference?
As Pakistan’s solar policy evolves, gross metering and net billing are two systems being discussed to replace traditional net metering. Both determine how solar electricity is measured, sold, and billed.
What Is Gross Metering?
Under gross metering, all electricity generated by the solar system is exported to the grid.
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Solar power goes directly to the grid
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The consumer buys 100% electricity from the grid
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Solar generation is paid at a fixed, usually low tariff
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No self-consumption benefit
Gross metering treats solar as a power-selling business, not a self-use system.
Key Points:
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Entire solar output is sold to DISCO
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Consumer pays full electricity bill separately
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Lower per-unit compensation
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Requires strong regulatory control
What Is Net Billing?
Under net billing, solar users can consume their own generated electricity first.
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Self-consumed solar reduces grid usage
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Only extra electricity is exported to the grid
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Exported units are paid at a fixed rate
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Imported electricity is billed at retail tariff
Net billing encourages self-consumption rather than export.
Key Points:
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Self-use allowed
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Export paid separately
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Better savings than gross metering
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Popular for homes and businesses
Gross Metering vs Net Billing Comparison Table
| Feature | Gross Metering | Net Billing |
|---|---|---|
| Self-Consumption | ❌ Not allowed | ✅ Allowed |
| Solar Power Flow | 100% to Grid | Used first, excess to grid |
| Grid Electricity Use | 100% purchased | Reduced |
| Export Compensation | Low | Low–Medium |
| Consumer Savings | Very Limited | Moderate |
| System Size Strategy | Export-based | Usage-based |
| Best For | Utility-scale sellers | Homes & businesses |
Which One Is Better Financially?
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Gross metering offers lowest returns for residential users
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Net billing still provides savings by reducing electricity imports
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Battery storage improves net billing returns
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Oversized systems perform poorly under both models
In Pakistan, net billing is currently more practical than gross metering.
Which System Suits You?
Choose Net Billing if:
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You want to reduce electricity bills
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You consume most power during the day
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You plan a home or commercial solar system
Choose Gross Metering if:
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You want to sell power only
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You accept lower tariffs
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You operate at a larger or utility level
Final Verdict
For Pakistan’s 2026 energy environment, net billing is clearly better than gross metering for residential and commercial solar users. Gross metering may help utilities manage grid revenue, but it offers limited benefits to consumers.
The future of rooftop solar lies in smart usage, right sizing, and self-consumption, not selling electricity cheaply to the grid.
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