Feed-in Tariff vs Net Metering

Different mechanisms

Feed-in tariffs (FiT) typically pay for all generation at a defined rate, separate from what you consume—every unit produced is sold, and every unit consumed is bought, often through separate meters or registers. Net metering instead offsets your own consumption with your own production first, and only the surplus is exported and credited under approved rules.

Pakistan's consumer rooftop framework is commonly discussed and implemented as net metering; verify any project-specific regime (such as larger commercial or IPP-scale arrangements that may reference feed-in style contracts) with your DISCO and a qualified lawyer before signing large contracts.

Which one applies to a typical household

For the overwhelming majority of residential and small-commercial rooftop installations in Pakistan, net metering—not a feed-in tariff—is the relevant mechanism. That means your economics depend heavily on self-consumption (see the related guide on peak hours and self-consumption), since offsetting your own retail-rate usage is usually worth more than the export credit alone.

Larger generation projects, dedicated solar farms, or bulk power producers may operate under different commercial arrangements that resemble feed-in structures, but these are a different regulatory track from the net-metering path an individual homeowner applies for through their DISCO.

Why the distinction matters when comparing quotes

Some sales pitches blur the two concepts to make projected returns look better than what net metering actually delivers. If a quote assumes every exported unit is paid at the same rate as your import tariff, ask the installer to show which mechanism that assumption is based on and whether it matches your DISCO's current net-metering rules.