Pakistan, a land of breathtaking beauty and rich history, is also blessed with abundant sunshine – a perfect recipe for harnessing the power of solar energy! This abundant sunshine presents a tremendous opportunity to address the country’s energy needs while embracing a clean and sustainable future.

The solar industry in Pakistan is experiencing a surge, with businesses recognizing this potential. However, the path to entering this exciting field can seem daunting, especially when navigating the registration process for AEDB/PPIB.

HETCO Solutions is Here to Help!

We understand the complexities involved in AEDB/PPIB solar company registration. This blog series aims to be your one-stop guide, empowering businesses to navigate the process with ease. Whether you’re looking to import solar panels, provide installation services, or offer other solar-related solutions like net metering, monitoring systems, battery storage, cleaning, or maintenance, HETCO Solutions has the expertise to simplify your journey.

In the coming sections, we’ll discuss:

• The intricacies of AEDB/PPIB solar company registration are tailored to specific services like imports and installations.
• The breakdown of costs associated with registration.
• How navigating the process efficiently can save you valuable time and resources.

Solar Import Requirements Checklist in Pakistan 2024

Select Type of Equipment Being Imported Solar Panels Inverters Batteries Other Select Target Market Residential Commercial Industrial Enter Capacity (in KW or MW) Generate Checklist

Introdution to AEDB / PPIB

Prior to June 2023, Pakistan had two separate bodies overseeing different aspects of energy development:

Alternative Energy Development Board (AEDB)

Established in 2010, the AEDB focused specifically on promoting and facilitating the development of renewable energy sources like solar, wind, and biomass. They conducted resource assessments, issued certifications, and supported research initiatives.

Private Power & Infrastructure Board (PPIB)

Founded in 1994, the PPIB acted as a “one-window facilitator” for private investment in the entire power sector, including conventional (fossil fuel) and renewable energy projects. They streamlined the approval process, provided guidance to investors, and ensured transparency in power purchase agreements.

Collaboration and Merger of AEDB & PPIB

Recognizing the potential for improved efficiency, the Pakistani government merged the AEDB into the PPIB in June 2023. This consolidation aims to:

• Create a one-stop shop for all power projects so that the investors can easily approach a single entity for guidance and approvals, regardless of the technology (renewable or conventional) they choose.
• Enhance operational efficiency – combining resources and expertise under the PPIB is expected to streamline processes and reduce bureaucratic hurdles.
• Promote renewable energy – just by bringing renewable energy expertise under the PPIB’s umbrella, the government hopes to further incentivize and facilitate solar and other renewable energy initiatives.

Impact on Solar Energy

The merger is expected to positively impact solar energy development in Pakistan by:

• Streamlined approval processes can attract more investors to solar projects.
• Solar energy projects may receive more targeted support and promotion due to the dedicated renewable energy expertise now available within the PPIB.

Net Metering Explained

Net metering is a billing mechanism that allows consumers with on-grid solar power systems to track the difference between the electricity they generate and the electricity they consume from the utility grid.

Here’s a breakdown:

• Solar Generation: When your solar panels produce electricity, it’s used to power your home or business first.
• Grid Consumption: If your solar generation doesn’t meet your current needs, you’ll draw power from the grid as usual.
• Net Metering Billing: Your meter tracks the net difference between these two flows.
  • If you generate more electricity than you consume (export to the grid), you receive credits on your electricity bill.
  • Conversely, if you consume more than you generate (import from the grid), you’ll be billed for the difference at the normal utility rate.

Significance of Net Metering for Solar Energy

Net metering is crucial for promoting rooftop solar adoption because it provides several benefits:

• Reduced Electricity Bills – if you offset your consumption with solar generation, you can significantly lower your electricity costs.
• Incentivizes Investment – knowing they can earn credits for excess generation encourages homeowners and businesses to invest in solar power systems.
• Increased Grid Stability – distributed solar generation from net-metered systems can help stabilize the grid by reducing peak demand on hot summer days.

Importance of AEDB Registration for Solar Companies

While obtaining an AEDB registration (now under the PPIB) might involve some expense, it offers several advantages that make it a worthwhile investment for companies involved in the solar energy sector, including installers, contractors, vendors, and importers.

In Pakistan, AEDB registration (now under PPIB) is mandatory for companies involved in the solar energy sector, including:

• Solar Installers: Companies that design, install, and commission solar power systems for residential, commercial, or industrial clients.
• Solar Importers: Businesses involved in importing solar equipment for sale or use in solar projects in Pakistan.
• Solar Contractors: Businesses subcontracted by larger companies to perform specific tasks related to solar installations.
• Solar Vendors: Companies that sell solar panels, inverters, batteries, and other equipment used in solar power systems.

Why do Solar Importers and Solar Installers need AEDB / PPIB Registration in Pakistan?

Here’s a breakdown of the key reasons why solar companies need PPIB / AEDB registration is crucial:

• AEDB registration opens doors to new opportunities and helps you find more clients.
• Banks are more likely to provide loans for your projects if you’re AEDB registered.
• There’s less competition when you’re registered, making it easier to win projects.
• Customers feel confident choosing an AEDB-registered company for their projects.
• PPIB Registration shows you’re a professional and reliable business.
• AEDB registration makes you eligible for government contracts and even large-scale solar projects.
• Registration increases the chances of getting joint ventures with other companies.
• AEDB registration can open doors to working on international projects.

Regulatory Compliance and Market Access

AEDB registration signifies that a company operates within the legal framework established for the solar energy industry. This compliance is mandatory when participating in government tenders and AEDB auction for solar projects.

Only registered companies can connect on-grid systems for net metering with the utility company (WAPDA).

Registration is required for any company offering solar or wind energy services in the public or private sector in Pakistan.

Without registration, companies are effectively locked out of a significant portion of the market.

Official Solar Imports

AEDB registration allows companies to import solar equipment officially. This ensures the equipment meets quality and safety standards set by the government.

Importing solar containers in Pakistan without PPIB registration can lead to confiscation of equipment and potential legal repercussions.

Tax Relief Benefits

The Pakistani government offers tax incentives for companies involved in renewable energy.

AEDB registration is often a prerequisite to qualify for these tax breaks, reducing the overall operational cost for registered companies.

Regulation and Quality Control

AEDB registration ensures companies adhere to industry best practices and safety standards.

This protects consumers from faulty installations and promotes the use of high-quality solar equipment.

Compliance with Net Metering

Solar installers must be AEDB registered to participate in net metering programs offered by electricity distribution companies. This ensures proper installation procedures and adherence to grid interconnection standards.

The Electricity Distribution Companies (DISCOs) in Pakistan include:

• K-Electric (Karachi)
• Islamabad Electric Supply Company (IESCO)
• Gujranwala Electric Power Company (GEPCO)
• Faisalabad Electric Supply Company (FESCO)
• Lahore Electric Supply Company (LESCO)
• Multan Electric Power Company (MEPCO)
• Hyderabad Electric Supply Company (HESCO)
• Sukkur Electric Power Company (SEPCO)
• Peshawar Electric Supply Company (PESCO)
• Quetta Electric Supply Company (QESCO)

Consumer Protection

AEDB registration signifies a level of professionalism and expertise. Consumers can be more confident choosing a registered company, knowing they are dealing with a legitimate and qualified provider.

Why should I invest in costly AEDB / PPIB registration?

While the initial cost of obtaining an AEDB registration might be a consideration, the long-term benefits outweigh the expense.

Registered companies gain access to a broader market, secure tax advantages, and establish themselves as trustworthy providers in the competitive solar energy sector.

Bonus: Three-Year Registration!

Great news! AEDB now issues registrations valid for three years instead of just one. 

This means you won’t have to renew your registration yearly, saving you time and effort.

So you can focus on your projects for the next three years without worrying about registration renewal.

However, keep it in mind that:

You’ll need to pay a registration fee for the entire three years.

Requirements for AEDB / PPIB Solar Company Registration

Obtaining AEDB registration (now under the PPIB) verifies your legitimacy and expertise in the solar energy sector.

Here’s a breakdown of the key requirements to navigate the process smoothly:

• Valid Business Registration
• Valid PEC Registration
• NEPRA 2015 SRO Documents
• Provincial Tax Registration (NTN)
• Bank Guarantees (if applicable)
• Tax Information (NTN)
• Financial Documents (demonstrating your financial stability)
• Past Project Experience (if applicable)
• Use of Approved Solar Equipment
• Compliant Installation Practices
• Proof of Relevant Expertise (Solar Field)
• Qualified Technical Staff on Payroll
• Your PEC license needs to include both Electrical and Mechanical engineering codes.
• There’s a minimum age requirement for your company depending on the AEDB registration category you’re applying for:
  • For C2 registration: Your company must be at least 3 years old.
  • For C1 registration: Your company must be at least 5 years old.

You’ll need a valid business registration certificate to prove your company’s legal existence in Pakistan. Also, ensure your company holds a valid PEC (Pakistan Engineering Council) registration to show your qualification for electrical works.

In some cases, specific projects might require compliance with regulations outlined in NEPRA’s (National Electric Power Regulatory Authority) 2015 SRO (Statutory Regulatory Orders) documents.

Plus, you may also need to provide your National Tax Number (NTN) to confirm your company’s tax compliance with FBR.

In some cases, you may also need to submit documents like your statements to demonstrate your company’s financial stability and ability to undertake solar projects.

Also, having a history of successful solar installations can somehow strengthen your application, so showcase relevant projects if you have them.

Your company’s installation procedures should adhere to best practices and comply with safety regulations outlined by the PPIB. Finally, having qualified technical staff on your payroll may also strengthen your application.

Solar Business Scope in Pakistan

Pakistan’s solar energy sector is experiencing a surge driven by several factors:

Market Trends

• Falling Solar Panel Prices: The cost of solar panels has been steadily decreasing, making solar energy a more attractive option for businesses and households.
• Rising Energy Demand: Pakistan faces a growing energy deficit, and solar power offers a reliable and sustainable alternative to traditional sources.
• Increasing Public Awareness: There’s a growing awareness of the environmental benefits of renewable energy, boosting public support for solar solutions.

Government Initiatives

• National Solar Energy Initiative: The government aims to generate 10,000 MW of electricity through solar projects in the coming years.
• Net Metering Programs: These programs incentivize solar adoption by allowing consumers to earn credits for excess electricity fed back to the grid.
• Focus on Renewable Energy: The government has set ambitious targets for renewable energy contribution to the national grid.

Growth Opportunities

• Distributed Solar Systems: Rooftop solar installations for homes and businesses offer immense potential for growth.
• Utility-Scale Solar Projects: Large-scale solar farms can significantly contribute to meeting Pakistan’s energy demands.
• Manufacturing and Investment: Investment in domestic solar panel manufacturing can create jobs and reduce reliance on imports.

AEDB Registration Cost Breakdown

At HETCO, we understand transparency is key. That’s why we’re providing a clear breakdown of the costs involved in registering your solar company with AEDB/PPIB for one province in Pakistan. Remember, these are estimates and don’t include PEC registration or the bank guarantee cost.

AEDB Registration Fee (Non-refundable – for one province):

The cost depends on the category you apply for, which determines your project capacity:

• C3 (up to 250kw): Rs. 755,000
• C2 (up to 500kw): Rs. 1,225,000
• C1 (No Limit): Rs. 1,650,000

Important Notes

• These fees cover your registration for three years.
• You’ll need to pay the entire amount upfront.
• PEC registration and the BG are separate costs not included in the above-mentioned prices.

Here’s what’s NOT included

• You must be registered with the Pakistan Engineering Council (PEC) before applying for AEDB registration. The cost of PEC registration varies.
• You’ll likely need a bank guarantee of Rs. 500,000 for four years. The bank will determine the cost of the guarantee.

AEDB Registration Processing Time

The processing time for AEDB registration depends on how quickly you can get your application together. Here’s the key takeaway:

Complete Application = Faster Processing – the faster you submit a fully completed application with all the required documents, the quicker AEDB can process it.

Here’s an estimate:

4-5 Weeks – if you have a complete AEDB application form and use an expert service provider to help you, it might take around 4-5 weeks for AEDB to process your registration and getting your AEDB / PPIB certificate.

But remember, this is just an estimate, and the actual processing time for AEDB license can vary depending on your specific case and AEDB meeting.

AEDB / PPIB Address

Previously, AEDB’s address was within the red zone of Islamabad, but now, as it is merged with PPIB, you won’t find a separate AEDB office anymore. Instead, you should now look for PPIB, which is located within the Ministry of Energy and the ministry is located within the Islamabad secretariat.

Due to security restrictions, visiting the physical address for inquiries might not be the most efficient approach.

Therefore, now finding AEDB contact number has become even more harder after the merger with PPIB.

AEDB / PPIB Vendors in Pakistan

Here is a list of the cities and the approximate number of AEDB approved vendors for net metering in each installer category (C-1, C-2, C-3):

Islamabad

• 2 vendors in C-1
• 12 vendors in C-2
• 6 vendors in C-3

Rawalpindi

• 0 vendors in C-1
• 5 vendors in C-2
• 6 vendors in C-3

Lahore

• 1 vendor in C-1
• 19 vendors in C-2
• 26 vendors in C-3

Karachi

• 8 vendors in C-1
• 15 vendors in C-2
• 14 vendors in C-3

Here, C1 refers to registrations with no capacity limit, C2 up to 500kw, and C3 up to 250kw.

It’s important to note that the above stats may represent a small picture of the total number of AEDB/PPIB registered vendors across Pakistan. As of June 2023, AEDB merged with PPIB, and there may not yet be a publicly available list reflecting this consolidation.

But we can suggest always focusing on finding companies with a good reputation and experience in solar energy projects. You can research online reviews and ask for recommendations from people in the industry.

Let HETCO Handle Your AEDB/PPIB Solar Registration in Pakistan!

Struggling to navigate the complexities of AEDB/PPIB solar registration in Pakistan? Don’t let registration delays hold back your solar ambitions! HETCO is here to streamline the process and get you up and running in as little as 1 month.

Why Choose HETCO for Your AEDB/PPIB Registration?

i. Fast and Efficient

We understand the urgency of getting your solar business operational. Our team of experts will handle all the paperwork and approvals, ensuring a swift registration process.

ii. Focus on Your Business

Don’t get bogged down in red tape. While HETCO tackles the registration, you can focus on building and growing your solar business.

iii. Unlock Bigger Opportunities

AEDB/PPIB registration opens doors to participate in government tenders, secure financing, and tackle mega-projects. HETCO will equip you to compete at the highest level.

Don’t settle for a slow start. Partner with HETCO and get your AEDB/PPIB registration done quickly and efficiently. Contact us today to discuss your specific needs and get a free consultation!

Is PEC Registration required for AEDB Registration?

AEDB registration often requires prior PEC registration in Pakistan, depending on the capacity of your solar projects. Here’s a breakdown to clarify:

AEDB Registration and PEC Requirements

PEC Registration is mandatory for most businesses seeking AEDB registration. The specific PEC category required depends on the maximum capacity of your solar projects:

• Up to 250Kw: PEC C6 minimum
• Up to 500Kw: PEC C5 minimum
• Above 500Kw: PEC C3 minimum (highest category)

HETCO Can Help!

Navigating both AEDB and PEC registration can be complex. HETCO’s team of experts can handle the entire process for you, ensuring you meet all the requirements for your desired AEDB category. We’ll guide you through the PEC registration first and then tackle the AEDB process seamlessly.

Don’t let registration hurdles slow you down. Contact HETCO today for a free consultation and let us handle the complexities while you focus on growing your solar business!

AEDB/PPIB FAQs

Here at HETCO, we understand that navigating the process of AEDB/PPIB solar registration in Pakistan can involve questions and complexities. That’s why we’ve compiled some helpful FAQs to shed light on common hurdles.

If you have any further questions, don’t hesitate to contact HETCO for a free consultation!

Is PEC Registration required for AEDB Registration?

Yes, PEC registration is usually mandatory for most businesses seeking AEDB registration in Pakistan. The specific PEC category you’ll need depends on the maximum capacity of your solar projects.

HETCO’s team of experts can assist you with both PEC and AEDB registration to ensure a smooth process.

Can I get AEDB Registration for just 1 year?

No, according to the current AEDB policy, AEDB certification is only issued for a period of 3 years. Your AEDB certificate will be valid for 3 years from the date it’s issued.

Is a Bank Guarantee Required for AEDB Registration?

Yes, a bank guarantee issued by a Pakistani bank is mandatory for a period of 4 years. HETCO can help you navigate this requirement as well.

Can I Upgrade My AEDB Category Later?

Unfortunately, AEDB category upgrades are not currently offered. If you need to change your category in the future, you’ll have to re-apply from scratch. HETCO can guide you through this process to ensure a smooth transition.

Is My Bank Guarantee Refundable After AEDB Registration Expires?

Yes, the bank guarantee submitted to AEDB is refundable after 1 month following the expiry of your license. This refund is conditional on there being no complaints or claims filed against you as a certified installer.

Do I Need SECP Registration for AEDB Registration?

No, SECP registration is not mandatory for AEDB registration itself. However, if you’re a new business aiming for the highest AEDB category, then SECP registration might be required based on PEC registration policy. HETCO can advise you on the specifics of your situation.

Which PEC Codes Do I Need for AEDB Registration?

While applying for AEDB registration, you’ll need to demonstrate expertise in renewable energy through a PEC registration with a specialization code in one of the following engineering disciplines:

• Power/Electrical Engineering
  • Mechanical Engineering (Thermal/Renewable)
  • Chemical Engineering (Thermal/Renewable)
  • Industrial and Manufacturing Engineering (Thermal/Renewable)
  • Civil Engineering (Thermal/Renewable)
  • Environmental Engineering (Thermal/Renewable)
  • Computer Engineering (Thermal/Renewable)
  • Mechatronics Engineering (Thermal/Renewable)
  • Electrical Power Engineering (Thermal/Renewable)
  • Materials Engineering (Thermal/Renewable)

Is There a Minimum Business Age Requirement for AEDB Registration?

Currently, AEDB registration doesn’t have a specific requirement regarding the age of your business. You can register irrespective of how long you’ve been operational, as long as you meet the other qualifications. These qualifications may include relevant experience in renewable energy, a valid business registration certificate, and sufficient financial resources for your project. HETCO recommends checking with AEDB for the latest updates on registration requirements.

Can I Directly Register for the AEDB “No Limit” Category?

Yes, direct registration with AEDB in the “No Limit” category is possible. However, you’ll still need to fulfill all the pre-requisite requirements outlined by AEDB. HETCO’s team of experts can assist you in navigating this process and ensuring you meet all the qualifications for your desired category.