LESCO Net Billing 2026: Application Process, Requirements and Timeline

Installing a grid-connected solar system in the LESCO region involves more than mounting panels and connecting an inverter.

The system must also pass through the applicable net-billing and grid-interconnection process before exported solar electricity can be recorded and settled under Pakistan’s current prosumer framework.

In 2026, that process is governed nationally by the NEPRA Prosumer Regulations, while LESCO acts as the relevant distribution licensee for its consumers.

The process also changed during 2026. Most importantly, an August 6 amendment created a simpler approval route for distributed-generation facilities of 25 kW or below.

For a homeowner, business or industrial consumer planning solar, understanding the process before installation can help avoid problems involving sanctioned load, transformer capacity, system design, documentation and metering.

What Is LESCO Net Billing in 2026?

Net billing is the framework used for new eligible grid-connected prosumer systems under the 2026 regulations.

The basic principle is that electricity imported from the distribution network and electricity exported from the solar system are accounted for separately.

Imported electricity is billed at the applicable consumer tariff.

Eligible electricity exported to the grid is credited using the applicable National Average Energy Purchase Price under the prosumer regulations.

This is different from treating imported and exported units as equal units.

Our Pakistan net-billing guide explains this distinction in greater detail.

Who Can Apply for Solar Net Billing?

The Prosumer Regulations define eligible applicants to include applicable three-phase 400 V or 11 kV consumers in categories including domestic, commercial, industrial, agricultural, general services and single-point bulk supply.

The distributed-generation facility can use solar, wind or biogas and can be installed up to the regulatory maximum, subject to the other technical restrictions in the framework.

For most E&E customers, the relevant technology is photovoltaic solar.

Eligibility does not mean that any desired solar capacity will automatically be approved.

Check Your Sanctioned Load First

One of the most important 2026 requirements is the sanctioned-load limit.

The Prosumer Regulations state that the proposed distributed-generation capacity cannot exceed the sanctioned load of the applicant’s premises.

For example, a consumer should not select system capacity from roof space alone and assume the same capacity can be submitted for grid interconnection.

Before finalizing the solar design, check:

• The sanctioned load shown against the connection.
• The proposed solar capacity.
• The electrical supply configuration.
• Actual electricity consumption.

Our solar-system sizing guide explains why capacity should also be based on real energy usage rather than only the maximum regulatory limit.

Check the Distribution Transformer Before Applying

The condition of the local distribution network also matters.

Under the Prosumer Regulations, a licensee shall not entertain a new application where distributed-generation capacity already connected to the relevant distribution transformer has reached 80% of that transformer’s rated capacity.

This means a property can have:

• Adequate roof space.
• Suitable electricity consumption.
• Sufficient sanctioned load.
• A technically appropriate solar design.

Yet local transformer capacity can still affect the application.

The PITC Net Billing Portal now provides a Check Transformer Overloading function before application submission.

Where Do LESCO Consumers Apply?

PITC currently operates the national Net Billing Portal used by participating distribution companies, including LESCO.

The portal allows applications to be submitted:

• By the consumer.
• By an installer.

It also provides application tracking, transformer-overloading checks, installer guidance and NEPRA schedules and forms.

Consumers with existing cases from the previous portal are instructed to continue tracking those applications through the previous system where applicable.

The 25 kW Rule Changed in August 2026

The August 6, 2026 amendment is especially important for residential and smaller commercial systems.

Under S.R.O. 1330(I)/2026, a distributed-generation facility of 25 kW or below no longer requires separate NEPRA concurrence.

Instead, the concerned distribution licensee grants the applicable approval.

For a LESCO customer with a qualifying system, this means LESCO handles that approval route rather than the applicant requiring NEPRA concurrence.

However, this does not remove:

• The application.
• Technical review.
• Sanctioned-load requirements.
• Transformer-capacity requirements.
• Interconnection.
• Metering.
• Protection requirements.

Blog #29 explains the August NEPRA amendment in detail.

What Happens Above 25 kW?

The August exemption applies specifically to facilities of 25 kW or below.

Where NEPRA concurrence remains applicable, the licensee forwards the required application documents for concurrence under the regulatory process.

NEPRA continues to publish LESCO prosumer concurrences in 2026, including entries dated September 22, confirming that LESCO applications continue through the concurrence framework where applicable.

What Happens at 250 kW and Above?

Larger distributed-generation systems have another requirement.

Where proposed installed capacity is 250 kW or above, the applicant must submit a load-flow study carried out through the licensee or a reputable consultant registered with the Pakistan Engineering Council.

This is particularly relevant for:

• Factories.
• Large commercial buildings.
• Hospitals.
• Institutional campuses.
• Industrial solar projects.

Our industrial-solar guide explains why grid conditions, electrical infrastructure and load profile should be assessed before finalizing these projects.

Step 1: Prepare the Solar Design

Before submitting the application, the system should be technically defined.

The project information will typically need to identify matters such as:

• Proposed DG capacity.
• Solar-panel specifications.
• Inverter specifications.
• System location.
• Electrical configuration.
• Single-line diagram.
• Interconnection arrangement.

The current PITC installer guidance also reminds applicants that proposed DG capacity must remain within sanctioned load and that transformer loading should be checked before application.

Step 2: Submit the Application

The application and necessary documents are submitted to the distribution licensee through the applicable process.

The PITC portal currently provides direct Apply For Net Billing options for both consumers and installers and includes LESCO among the supported DISCOs.

Consumers should ensure the technical information submitted through the portal matches the system actually being installed.

Step 3: Application Completeness Check

The national regulations specify that the licensee should acknowledge receipt and determine whether the application is complete within five working days.

Where information or documents are missing, the applicant is required to provide them within the prescribed period after being informed.

Submitting inconsistent system capacities, incomplete drawings or incorrect consumer information can therefore delay the process.

Step 4: LESCO Technical Review

Once the application is complete, the licensee performs an initial technical review.

The Prosumer Regulations provide fifteen working days for this initial review.

If the proposed facility is found technically infeasible, the licensee is required to communicate the reasons to the applicant after completing the review.

This stage can consider whether the system can safely and technically interconnect with the distribution network.

Step 5: Interconnection Agreement

Where the requirements are satisfied, the applicant and licensee proceed to the prescribed interconnection agreement.

The regulations provide a seven-working-day period for entering into the agreement after the applicable requirements have been fulfilled.

The August amendment updated the framework so that references to concurrence also accommodate licensee approval for systems up to 25 kW.

Step 6: NEPRA Concurrence Where Applicable

For systems that remain subject to NEPRA concurrence, the required documentation is forwarded through the regulatory process.

For facilities of 25 kW or below, the August 2026 amendment removes this separate NEPRA-concurrence requirement and places approval with the concerned licensee.

Consumers should therefore determine which capacity category applies before assuming every LESCO application follows exactly the same approval route.

Step 7: Connection Charge Estimate

After execution of the interconnection agreement, the licensee issues the applicable connection-charge estimate for the interconnection facilities and metering installation.

The regulations specify a seven-working-day period for issuance of that estimate.

The prosumer then has seven working days from issuance to make the required payment.

Actual connection charges can vary because they depend on the interconnection requirements of the specific site.

Step 8: Meter Installation and Commissioning

Following the required payment, the regulations provide for installation and commissioning of the proposed interconnection facilities within the prescribed process.

Metering must be capable of measuring electricity flow in both directions.

The licensee may use:

• A meter capable of recording import and export.
• The permitted equivalent arrangement using separate meters.

The objective is accurate measurement of electricity taken from and supplied to the distribution network.

The PITC process flow shows meter/material issuance, meter installation, MCO processing and billing update as part of the DISCO workflow.

Do Not Export Before the Interconnection Process Is Complete

Installing solar panels does not automatically make the property an approved prosumer.

The system must complete the applicable technical, approval, interconnection and metering process before grid export is treated under the approved billing arrangement.

A grid-connected inverter should therefore be commissioned according to the approved electrical design and licensee requirements.

Our solar installation and commissioning guide explains why commissioning should be treated as a controlled technical process rather than simply switching on the inverter.

Electrical Protection Still Matters

LESCO approval is not only paperwork.

Grid-connected solar requires appropriate electrical engineering and protection.

Depending on the system, this can include:

• AC and DC protection.
• Isolation.
• Earthing.
• Surge protection.
• Correct cable sizing.
• Grid-protection functions.
• Compatible inverter settings.

The licensee has the right to review the design and inspect the distributed-generation and interconnection facilities before parallel operation.

Our solar-system safety guide covers these protection requirements in more detail.

How Does the LESCO Bill Work After Approval?

Under the 2026 net-billing framework, imported and exported electricity have different financial treatment.

If the property consumes solar electricity directly while it is being generated, that energy reduces the amount of electricity that needs to be purchased from the grid.

Any eligible surplus sent to the distribution network is measured separately and credited under the applicable export mechanism.

This is why system sizing and self-consumption now matter significantly.

A system that generates large daytime exports can have a different financial outcome from one where most generation is consumed directly on site.

Should You Install the Largest System LESCO Allows?

Not automatically.

Regulatory eligibility defines what may be possible.

It does not determine what is financially optimal.

The solar design should consider:

• Electricity consumption.
• Daytime loads.
• Sanctioned load.
• Expected solar generation.
• Self-consumption.
• Export levels.
• Roof or ground area.
• Project cost.

Installing a larger system solely because the connection can accommodate it may produce excessive lower-value exports.

Our solar self-consumption and commercial ROI guides explain why system capacity should be matched to the actual load profile.

A Practical LESCO Net-Billing Process

A new applicant can use this sequence:

1. Review at least several months of electricity consumption.
2. Confirm sanctioned load.
3. Determine appropriate solar capacity.
4. Check transformer loading.
5. Prepare the solar design and technical documentation.
6. Submit the application through the PITC Net Billing Portal.
7. Complete LESCO technical review.
8. Execute the interconnection agreement.
9. Complete NEPRA concurrence where applicable.
10. Pay the applicable connection-charge estimate.
11. Complete metering and interconnection work.
12. Test and commission the installation.
13. Confirm the billing update.
14. Monitor import, export and solar generation after commissioning.

LESCO Solar Applications Should Start With Engineering

Net billing should not be treated as paperwork that begins after the solar system has already been purchased.

Sanctioned load, transformer availability, system capacity, inverter selection and interconnection requirements can all affect the project.

E&E Industries provides solar EPC services covering feasibility, engineering, procurement, installation, testing and commissioning, with support for grid-connected project requirements.

For LESCO consumers, the stronger approach is to verify the electrical and regulatory conditions first, design the system around actual consumption, and then move through the current approval and net-billing process.

Frequently Asked Questions

How do I apply for LESCO solar net billing?

LESCO is included in the PITC Net Billing Portal, which currently allows consumers or installers to submit net-billing applications and track their cases.

Do LESCO solar systems up to 25 kW need NEPRA concurrence?

Under the August 6, 2026 amendment, facilities of 25 kW or below do not require separate NEPRA concurrence. The concerned distribution licensee provides the applicable approval.

Can my solar capacity exceed my LESCO sanctioned load?

No. Under the current Prosumer Regulations, proposed distributed-generation capacity cannot exceed the sanctioned load of the premises.

Can LESCO reject an application because of transformer capacity?

The regulations state that a licensee shall not entertain an application when connected distributed-generation capacity on the relevant distribution transformer has reached 80% of its rated capacity.

Do systems of 250 kW or above need a load-flow study?

Yes. The 2026 Prosumer Regulations require a load-flow study for proposed distributed-generation facilities of 250 kW or above.

Does LESCO net billing use a bidirectional meter?

The regulatory framework requires metering capable of measuring electricity flow in both directions, whether through a suitable bidirectional meter or the permitted equivalent metering arrangement.

Can I install solar before applying for net billing?

The physical project and regulatory process should be coordinated carefully. Grid export should not be treated as approved until the applicable application, technical review, interconnection, metering and commissioning requirements are completed.