March 9, 2022

AEDB Solar Company Registration in Pakistan

We will describe complete information about AEDB. These are the major topics we are going to discuss in the article

Table of Contents

What is AEDB:

AEDB stands for Alternative Energy Development Board. It is department of Federal Government of Pakistan situated in Islamabad. AEDB was established in 2003 to facilitate and promote alternative renewable energy resources in Pakistan. In 2006 ministry of water and power take over the management of the department.

What is AEDB License:

Pakistan’s energy resources consist of fossil fuels (coal, gas and oil), uranium and renewable energy (hydropower, wind, solar, Bio Gas, etc). The major resource is of energy is hydropower. AEDB was establish to promote alternative renewable green energy in Pakistan rather than only hydropower. in simple words AEDB regulate and implement policies for Wind, Solar and Bio Gas.

The Government of Pakistan give goal to the AEDB to ensure 5% of total national power generation capacity to be generated through alternative renewable energy technologies by 2030.

These are the following task of the AEDB

  • Through the private sector, implement policies, initiatives, and projects in the field of alternate renewable energy.
  • To support long-term economic prosperity, assist in the invention and generation of alternative renewable energy.
  • Encourage technological transfer and also the development of an area producing base for different renewable energy.
  • Promote the use of alternative renewable energy sources to provide technological energy services.
  • Carry out opportunity renewable power initiatives on a massive scale (AEDB Act 2010)

Its mandatory to obtain certification from AEDB for the companies providing installation services in Pakistan

Business Registration with AEDB for NET Metering:

Allah blessed this world with sun light and heat. We are doing all work in light. Sunlight is free and unlimited source of energy. 

First solar panel was invented in 1883 by  Charles Fritts with 1% efficiency. With the passage of time scientists develop solar panel that are capable to convert sunlight into electric current with 44.5 Percent efficiency.

In history we were using solar panels for power generation and batteries as power bank to store the energy so we can utilize energy as per our requirement. 

There are 3 major parts to generate energy from sunlight as below. 

  1. Solar Panel
  2. Invertor
  3. Battery

Scientists reduce the cost of panels and invertors to compete the market and to make economically feasible. 

Battery is most expensive part in solar system. Scientists find solution by introducing net metering.

What is Net Metering and How it works:

Net metering is an electricity billing mechanism that allows consumers who generate some or all of their own electricity to use that electricity anytime, instead of when it is generated. 

When consumers generate electricity, they can sale all or excess power to electricity Distribution Company instated of storing in battery. At the nighttime when there is no sunlight consumer can buy electricity from DESCO. Electricity bill become zero or some time consumer can earn, but it depends on installed system.

Net Metering License:

There is three types of solar systems that can be use as per requirements. as below

  1. Off-Grid System
  2. On-Grid System
  3. Hybrid System

Off- Grid Solar System:

A solar system working independently and not tie with another system is off-grid solar system. Off-grid system required batteries to store the energy generated by system. This system includes Solar Panels, Invertors, Charge Controller, and Batteries are major parts.

On-Grid Solar System:

A solar system tied with local utility grid called On-Grid solar system. This is the system mostly used now a days. To tie with local grid need professional and certified companies. AEDB provide net metering license to that installers who provides on-grid solar system installation services. Locally utility provider purchase over production at day time and sale over night when sun light not available.

Net Metering license required to install on-grid system.

Hybrid Solar System:

Hybrid system means a system consists more than one type or multiple systems. Hybrid solar system generate power in the same grid-tie solar system or on-grid solar system. In hybrid solar system needs special hybrid invertors.

Hybrid system consists of batteries, generator, solar system and on grid electricity utility.

Net metering license required to install hybrid system.

Why AEDB Solar License Required:

It’s mandatory to get registration and obtain certificate from AEDB for the design and execution of solar, wind, Bio gas or any alternative renewable energy system. 

Alternative Renewable Energy System designers obtain solar consultant’s license from AEDB.

All constructor providing services in alternative renewable energy sector needs professional installer certification from AEDB.

Companies working in energy sector without AEDB license are not eligible to provide on-grid system installation of any capacity. These companies are not eligible to provide net metering system as well.

The companies without AEDB certificate are eligible to install off-grid system for domestic and commercial level.

Today market is trending for net metering to save the batteries cost and utilize over production.

This is the right time to get AEDB Net Metering License for those companies who are involved in energy sector. Pakistan is huge market for solar energy net metering system installation for domestic and commercial level. The business opportunities are much more for the companies with AEDB license in private and government sector.   

Benefits of AEDB License:

There are many benefits of getting AEDB license for alternative renewable energy.

  1. Companies can participate in government and private projects for net metering and off-grid system installation.
  2. Companies with AEDB license have good reputation in the market.
  3. Great opportunities for business developments.
  4. Advantage of sustainable business in the competitive market.
  5. Less competition in the market.
  6. Eligible of bank leasing consultants for solar energy.

AEDB License Categories:

There are many benefits of getting AEDB license for alternative renewable energy.

  1. Companies can participate in government and private projects for net metering and off-grid system installation.
  2. Companies with AEDB license have good reputation in the market.
  3. Great opportunities for business developments.
  4. Advantage of s

    ADEB registration for the companies as installer or service provider has 3 categories. These below are the categories

    1. C1 AEDB License
    2. C2 AEDB License
    3. C3 AEDB License

    C1 AEDB License:

    C1 AEDB license is the highest category in AEDB. C1 allows above 500KW or unlimited capacity for off-grid  & on-grid projects. NEPRA is the governing authority for electric and power in Pakistan. NEPRA  allows only 1MW for net metering. 

    C2 AEDB License:

    C2 AEDB license is the second category in AEDB for solar energy works. C2 allows up to 500KW capacity for off-grid and on-grid projects.

    C3 AEDB License:

    C3 AEDB license is the least category in AEDB for solar energy installation projects. C3 license allows up to 250KW capacity for off-grid and on-grid projects.ustainable business in the competitive market.
  5. Less competition in the market.
  6. Eligible of bank leasing consultants for solar energy.

Fee Structure of all AEDB license in 2022:

AEDB License fee is for 3 years but license will be till the date of PEC License. AEDB license is extendable after submitting the renewed PEC License.

Sr. No

Category

License fee for 3 years

Application Processing fee

1

C-1

672,000/-

16,800/-

2

C-2

504,000/-

16,800/-

3

C-3

336,000/-

16,800/-

Requirements for AEDB license:

There are below list of the documents required for AEDB license

  1. Application covering letter
  2. Application Form
  3. Board Resolution for private limited companies
  4. Authority letter
  5. Applicant’s Profile (Company Profile)
  6. Company Certificate of Incorporation or Registered Partnership Deed
  7. Pakistan Engineering Council (PEC)’s valid license for the relevant categories like at least C3/FC-1 for AEDB C1 license, C5/FC-1 for AEDB C2 license, C6/FC-1 for AEDB C3. These below codes are required by PEC
    • EE-11 ( General electrical works & solar system) or,
    • ME-07 (General mechanical works & solar system)
  8. Income tax registration certificate and
    • Active tax payer status report
  9. Sales tax registration certificate and
    • Sales tax returns of last three months, as applicable
  10. Provincial tax registration certificate and
    • Active tax payer status
  11. Particular of installed projects as Performa given by AEDB
  12. Pay order of non-refundable application processing fee in the name of Alternative Energy Fund.
  13. Bank guarantee valid for 4 years equivalent to an amount of PKR 500,000/-
  14. Affidavit from applicant on stamp paper of 100 rupees
  15. Complete documents signed and stamped by applicant
  16. Certification fee in the name of Alternative Energy Fund

Procedure of license application

Prepare all above documents and submit to AEDB



In this article:
We will guide complete information about AEDB solar company registration. Complete procedure, requirements and the cost of registration. We are expert AEDB consultants if you have any query then contact us.
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