In short: factories are one of the best fits for solar under Pakistan’s 2026 net billing rules, because most machines run in daylight when solar produces power. That means most solar units replace grid units billed at the full industrial tariff, instead of being exported at the low net billing rate.
Key rules for industrial users: the system cannot exceed your sanctioned load, the maximum size is 1 MW, systems of 250 kW or more need a load flow study, and systems above 25 kW pay a one-time NEPRA fee of Rs 1,000 per kW.
Last updated: 21 September 2026. Based on the NEPRA (Prosumer) Regulations 2026 and later amendments. Sources are listed at the end.
Why solar suits factories in Lahore
- Daytime load: production shifts, compressors, motors, lighting and cooling run during the same hours the panels produce.
- High self-consumption: under net billing, self-used units save the full tariff. A factory that uses nearly all of its solar output on site gets the most out of the new rules.
- Large, flat roofs: sheds, warehouses and factory buildings often have roof space for large systems.
- Strong sunshine: PVGIS data puts yearly production in Lahore at about 1,570 units per kW for a south-facing system. For month-by-month figures, see our Lahore solar production guide.
Net billing rules that matter for industrial users
| Rule | What it means for your factory |
|---|---|
| Size limit: sanctioned load | The solar system cannot be larger than your connection’s sanctioned load. Extend the load first if needed. |
| Maximum size: 1 MW | Net billing covers distributed generation facilities from 1 kW up to 1 MW. |
| Load flow study at 250 kW and above | Must be carried out through the DISCO or a consultant registered with the Pakistan Engineering Council. |
| Transformer limit: 80% | No new application is accepted once solar on the transformer reaches 80% of its rated capacity. You can check transformer overloading on the Net Billing Portal before applying. |
| NEPRA licence fee | None up to 25 kW. Above 25 kW, a one-time Rs 1,000 per kW. For example, a 100 kW system pays Rs 100,000 once. |
| Billing | Imported units at your applicable industrial tariff; exported units credited at the national average energy purchase price. |
| Agreement | Five years from commissioning, renewable for five more by mutual consent. |
| Equipment | Grid-connected inverters must meet the UL 1741 standard; the prosumer pays for interconnection facilities and metering. |
How to size a solar system for a factory
- Collect 12 months of LESCO bills. Look at monthly units, maximum demand and your sanctioned load.
- Understand your load profile. Single-shift factories use most power in daylight; 24-hour plants use a large share at night. Sub-metering or inverter data from a pilot system helps.
- Size for self-consumption. Aim for a system whose midday output your factory can use on site on a typical working day. Oversizing mainly adds exported units at the low net billing rate.
- Check the roof. Confirm the structure can carry the panels and mounting, plan walkways for cleaning and maintenance, and keep panels clear of exhaust vents and dust sources.
- Plan around holidays. On Sundays and closures, most output is exported. Factor this into expected savings.
Practical points for Lahore factories
- Dust and smog: industrial areas get dirty panels quickly. Plan regular cleaning. See our solar panel cleaning guide for Lahore.
- Generators: if your plant runs diesel or gas generators during outages, the solar inverters and generator need proper controls so they work together safely.
- Batteries: factories with heavy evening or night loads can consider storage. See our guide to hybrid solar systems in Lahore.
- Fire safety and access: keep cable routes protected, label isolation points, and keep roof access clear.
How to apply
Industrial consumers in Lahore apply through the official Net Billing Portal run by PITC, which handles LESCO applications. The process, from application and technical review to agreement, demand notice, meter installation and, for systems above 25 kW, NEPRA concurrence, is explained step by step in our guide to LESCO net metering and net billing in Lahore. For the full rules, read our complete guide to net billing in Pakistan.
Frequently asked questions
Is solar worth it for a factory under net billing?
Usually, yes. Factories use most of their power in daylight, so most solar units replace grid units billed at the industrial tariff rather than being exported at the lower net billing rate.
What is the maximum solar system size for a factory?
Up to 1 MW under net billing, and no larger than the sanctioned load of the connection.
Is there a NEPRA licence fee for a factory solar system?
Systems of 25 kW or less pay no licence fee. Larger systems pay a one-time fee of Rs 1,000 per kW.
When is a load flow study required?
For systems of 250 kW or more. It must be done through the DISCO or a consultant registered with the Pakistan Engineering Council.
Can a factory export surplus solar power to LESCO?
Yes. Exported units are credited at the national average energy purchase price. If credits exceed charges, the difference is carried to the next bill or paid quarterly.
اردو خلاصہ
فیکٹریوں کے لیے نیٹ بلنگ کے تحت سولر خاص طور پر فائدہ مند ہے کیونکہ مشینیں دن میں چلتی ہیں اور سولر کے زیادہ تر یونٹ وہیں استعمال ہو جاتے ہیں جو پورے انڈسٹریل ٹیرف کی بچت کرتے ہیں۔ سسٹم منظور شدہ لوڈ سے بڑا نہیں ہو سکتا اور زیادہ سے زیادہ حد 1 میگاواٹ ہے۔ 250 کلو واٹ یا اس سے بڑے سسٹم کے لیے لوڈ فلو اسٹڈی ضروری ہے۔ 25 کلو واٹ تک کوئی لائسنس فیس نہیں، جبکہ اس سے بڑے سسٹم پر ایک بار 1,000 روپے فی کلو واٹ فیس ہے۔ ٹرانسفارمر پر سولر 80 فیصد صلاحیت تک پہنچ جائے تو نئی درخواست قبول نہیں ہوتی۔
Planning solar for your factory in Lahore?
Solar Net Metering designs and installs solar systems and handles net billing applications for businesses and industry in Lahore. Office: 222 Main Boulevard, DHA Phase 6, Lahore.
Sources
- NEPRA (Prosumer) Regulations 2026, S.R.O. 251(I)/2026
- Dawn, 28 April 2026: Nepra abolishes licence requirement, fee for small solar users
- PITC Net Metering / Net Billing Portal
- PVGIS (European Commission Joint Research Centre)
This guide explains the rules in plain language and is not legal or engineering advice. Confirm details with LESCO and NEPRA for your connection.