Economic and Environmental Analysis of Photovoltaic Solar Net Metering-A case of Karachi, Pakistan

mehak kanwal; Jamshed Iqbal

doi:10.58921/jse.03.02.091

mehak kanwal Department of Environment and Energy Management, College of Business Management, Institute of Business Management, Korangi Creek, 75190, Sindh, Karachi, Pakistan.
Jamshed Iqbal Department of Environment and Energy Management, College of Business Management, Institute of Business Management, Korangi Creek, 75190, Sindh, Karachi, Pakistan.

DOI: https://doi.org/10.58921/jse.03.02.091

Keywords: Solar net metering, Solar Photo-voltaic (PV) system, Economic analysis, Environmental analysis, Karachi

Abstract

The increase in electricity prices in Pakistan has placed a heavy burden on consumers. The installation of rooftop solar Photovoltaic (PV) systems with net metering has emerged as a practical and sustainable solution to alleviate this issue. This study examines the benefits of net metering emphasizing its potential to reduce electricity bills and mitigate global warming by curtailing carbon emissions. Data pertaining to residential electricity usage and net-metering consumers in Karachi from 2018 to 2022 was examined to assess variations in electricity costs and determine potential savings through net metering. The analysis reveals a notable 375% rise in the average monthly expenditure on electricity for residential consumers in Karachi since 2018. Following the introduction of net metering in 2018, the number of consumers increased by 6,250% in 2022 compared to 2018. Solar net-metering consumers enjoyed an average monthly savings of 32% on electricity bills and an annual monetary benefit of approximately 275%. Furthermore, solar net metering has contributed approximately 11.64 MW of electricity to Karachi's grid, resulting in a reduction of 686,348 Kg/TJ in carbon emissions. It is recommended that government invest in providing subsidies for solar system to promote the adoption of solar electricity in Pakistan.