The Alternative Energy Development Board (AEDB) is an independent national advisory board that advises the Secretary of Energy on alternative energy development. The AEDB was established by Congress in the year 2003 under the Alternative Energy Act. The purpose of its creation was to promote alternative energy and make it more affordable for people in Pakistan.
What is Alternative Energy?
Alternative energy is any source of energy that is not derived from fossil fuels. There are many different types of alternative energy, including solar power, wind power, and hydroelectric power. Alternative energy is becoming increasingly important as we move away from fossil fuels and towards renewable sources of energy.
Nowadays, more and more people are investing in alternative energy sources. This is because alternative energy is becoming increasingly affordable, and it is also a great way to reduce your carbon footprint.
Introduction to Alternative Energy Development Board (AEDB)
Alternative Energy Development Board (AEDB) is the only authority from the Federal Government working in the area of renewable energy in Pakistan. AEDB was established in the year 2003 to enable, boost and streamline the growth of renewable energy after the realization of its potential in the country. The major objective of this organization was to facilitate more and more Alternative and Renewable Energies (AREs) at a faster rate.
Soon after the establishment of this new department, the Federal Government transferred its executive management to the Ministry of Water and Power in the year 2006. As declared, the primary goals of AEDB were as follows:
- To enforce rules, regulations, projects, and programs by collaborating with the private sector in the area of ARs.
- To achieve endurable financial growth by facilitating and assisting the growth and production of various AREs.
- Promotion of energy service provisions that are related to the ARE resources.
- Taking forward the small and beginner ARE Projects to a mass commercial scale (based on AEDB Act 2010).
AEDB Eligibility Criteria for Pre-Qualification/Certification of Services Companies & Vendors
The service-providing companies or Vendors or Joint Venture (JV) firms who have the ability to provide a complete service package. Starting from surveying and designing to delivering the materials/ equipment to the work site as well as installing, and commissioning the project. Plus providing post-installation support services will become eligible for prequalification of certification at AEDB.
AEDB Solar License Registration Requirements
All the firms that want to have an AEDB Solar License should fulfill the following requirements:
- Valid PEC registration with relevant specialization codes.
- Have registration with sales tax & income tax (NTN & STN).
- Hold Solar Experience of at least 3 years.
- Installation experience of at least 10 Solar Systems (on-grid or off-grid).
- Posses Solar Inventory as per NEPRA & AEDB specifications.
- Minimum Average Annual Turnover of Rs. 3 million.
- Unconditional Bank Guarantee of Rs. 1 Million (10,00,000/-) in the favor of AEDB.
- AEDB Initial Registration Fees (for shortlisted candidates only).
- Proper office setup for the firm.
1. Valid PEC Registration with Relevant Specialization Codes
PEC Registration is the basic requirement for starting any Engineering firm in Pakistan. PEC is the only authorized authority to issue engineering licenses and registrations.
Without a valid PEC registration, it is illegal to practice engineering in Pakistan. All the top engineering firms in Pakistan are registered with PEC and have valid PEC licenses.
Therefore, if you want to get AEDB Solar License in Pakistan, make sure to get a valid PEC registration with appropriate specialization codes relevant to your intended project. These codes may include:
- Code 1210 (Renewable Energy Systems and Sources)
- Code 1220 (Energy Development, Planning, and Conservation) & more!
You can get more information about the PEC registration process here.
2. Registration with Income Tax & Sales Tax Departments
The income tax & sales tax registration is mandatory for all businesses operating in Pakistan. In order to register, you will need to provide the following information:
- Business name and address
- Taxpayer identification number (NTN)
- Sales tax registration number (STN)
You can obtain an NTN from the National Tax Number Registration Office (NTNRO), which is part of the Federal Board of Revenue (FBR). The STN can be obtained from the Federal Tax Ombudsman (FTO) or any of the Regional Tax Offices.
In order to get an AEDB Registration license, you must provide your NTN and STN certificates to prove your valid registration with income tax & sales tax departments.
3. Hold at least 3 years Solar Experience
The Solar Energy Development Board of Pakistan (AEDB) requires that solar installers have a minimum of three years of experience before they can be registered to install solar systems in Pakistan.
This is because the AEDB wants to ensure that only qualified and experienced professionals are installing solar systems in the country.
This is important, as solar systems need to be installed correctly in order to function properly and provide the benefits they are meant to provide.
Installers who do not have the required experience may not install solar systems properly, which could lead to system failures and decreased performance.
4. Minimum 10 Solar Systems (on-grid & off-grid) Installation Experience
The installation experience of at least ten solar systems is required for getting AEDB solar registration certificate in Pakistan. This is because the Authority wants to ensure that the registered solar system installers are experienced and can provide quality services to their customers.
Moreover, the Authority also wants to promote healthy competition in the solar industry by ensuring that only qualified and experienced installers can provide their services to customers.
AEDB has also set up certain standards and requirements for solar system installers which need to be met in order to get the solar registration certificate. These standards and requirements include having a valid license from the relevant authorities, having a certain level of experience in solar system installation. Moreover, using quality products and materials in the solar systems, as described above.
The firms should provide the following documentation to justify their experience claim:
- Complete list of ongoing & completed projects with their complete site locations, size, scope, components, completion time, and shared responsibility roles (in case of JV projects).
- Type, class, and technical specifications of solar systems installed.
- Complete list of clients.
- Any extra documents to justify the experience claim.
4. Possession of Solar Inventory as per NEPRA & AEDB specifications
The National Electric Power Regulatory Authority (NEPRA) has set the specifications for solar equipment that is used in Pakistan. To get an AEDB solar registration certificate, it is required to have possession of Solar Inventory as per NEPRA & AEDB specifications.
This ensures that all solar equipment used in Pakistan meets the required standards and is safe for consumers. Solar energy is a growing industry, and it is important that we have regulations in place to ensure the safety and quality of solar products.
The AEDB solar registration certificate is a mark of assurance that the solar product you are using is of high quality and meets the required standards. It is important to remember that not all solar products are created equal, so make sure to only buy products that have the AEDB solar registration certificate.
5. Minimum Average Annual Turnover of Rs. 3 Million
The solar firms need to have a Minimum Average Annual Turnover of Rs. 3 million in order to get the AEDB solar registration certificate in Pakistan. This is to ensure that only the most qualified and reputable firms are able to provide solar services in the country.
By requiring a minimum turnover, the AEDB is ensuring that only the most qualified and well-established firms can participate in the solar market. This will help to protect consumers and ensure that they receive high-quality services.
Furthermore, it will also help to create a more competitive market, which will benefit Pakistani consumers in the long run.
The firms need to provide the following documentation to prove their annual turnovers:
- Properly audited financial statements.
- Tax Returns
- Tax Declaration & others.
6. Bank Guarantee of Rs. 1 Million in the favor of AEDB
The Unconditional Bank Guarantee of Rs. One Million (PKR) is required to get the AEDB Solar Registration Certificate in Pakistan. The bank guarantee is an assurance from the issuing bank that it will cover any losses suffered by the beneficiary if the principal debtor fails to repay the debt.
This guarantee is issued to protect the interests of the creditor and ensure that he receives his money back, even in case of the debtor’s insolvency.
This is why it is important for businesses to have a bank guarantee in place before starting any new venture. It gives them peace of mind and protects their interests in case of any unforeseen circumstances.
The bank guarantee is also a sign of good faith between the parties involved in the transaction. It shows that both parties are willing to cooperate and work together for the benefit of all.
7. Foreign firms requirements to prove their local presence
The rationale behind this requirement is that it helps to build trust among local stakeholders, who may be hesitant to do business with foreign firms.
By establishing a local presence, foreign firms can show that they are committed to doing business in Pakistan. Moreover, have the best interests of local stakeholders at heart.
Additionally, a local presence can help foreign firms to navigate the complex Pakistani business landscape and build strong relationships with key stakeholders. Establishing a JV agreement with a local consulting firm is the best way to achieve this.
Also, it is important to note that a local presence is not only required for foreign firms seeking solar registration certificates from AEDB, but also for those seeking other types of registration certificates.
8. AEDB Initial Registration Fee
AEDB Initial Registration Fees is required for getting AEDB solar registration certificate in Pakistan. The purpose of this fee is to cover the administrative and overhead costs associated with the registration process. The fee is payable at the time of application submission.
The details of the fee structure are provided below:
9. Affidavit Requirements from the firm
The firms applying for AEDB solar registration certificates need to provide an affidavit verifying the following:
- the vendor has never been boycotted or blacklisted by the government.
- all the information provided to AEDB is correct and valid.
- the firm has accurate availability of solar equipment as per approved specifications & standards.
- will assure to deploy enough staff as per intended project requirements.
The affidavit from the firm helps to ensure that the applicant is a bona fide entity and can be relied upon to deploy staff as per project requirements. The verification of the character and equipment availability of the company also helps to safeguard the interests of both AEDB and potential investors.
The provision of accurate information in the application helps to avoid any delays in the registration process. The verification of staff qualifications and experience also assures that only qualified and experienced personnel will be working on the project.
AEDB registration certificate is an important document that helps to establish the credibility of a company and its ability to deliver on solar projects.
It is therefore important that firms provide the required affidavit to prove their character, equipment availability, the provided information is correct, and that they will deploy staff as per project requirement. This will help to ensure a smooth and timely registration process.
10. Proper office setup for AEDB registration
A proper office setup is important for a business in order to get an AEDB solar registration certificate in Pakistan. This includes having all of the necessary equipment and supplies, as well as having a designated workspace for employees. By having a proper office setup, businesses can ensure that they are able to complete all of the necessary paperwork and procedures for getting registered with AEDB.
Furthermore, having a proper office setup can also help businesses to save time and money. By having all of the necessary supplies and equipment in one place, businesses can avoid having to search for or purchase them separately.
Additionally, businesses can save money on office space by using a workspace that is specifically designated for AEDB solar registration purposes.
Net Metering & Why it is important?
Net metering is a billing mechanism that credits solar energy system owners for the electricity they add to the grid. For every kilowatt-hour (kWh) of electricity generated by their solar energy system, the owner is credited at the retail rate for that kWh.
The credit can be used to offset electricity costs at any time, day or night. If the solar energy system generates more electricity than the home consumes during a billing cycle, the owner receives a credit that carries over to the next billing cycle.
Net metering is important because it allows solar energy system owners to receive the full value for the electricity they generate. It also helps to grow the solar market by making it easier for people to go solar.
There are three types of net metering:
- Single Phase Net Metering
- Three Phase Net Metering
- Virtual Net Metering
1. Single Phase Net Metering
This type of net-metering is available to homeowners and small businesses by AEDB.
2. Three Phase Net Metering
The three-phase net metering is available to large businesses and institutions throughout Pakistan.
3. Virtual Net Metering
The Virtual Net Metering allows multiple solar energy systems to be aggregated into a single account, making it easier for people to go solar if they don’t have a sunny roof.
Net Metering Concept in Pakistan
In Pakistan, net metering is currently available for small solar energy systems up to 50 kilowatts (kW) in size. The program is administered by the Alternative Energy Development Board (AEDB).
To participate in the net metering program, system owners must first get approval from their local distribution company. The distribution company will then install a net meter also called green meter. Which measures the amount of electricity generated by the solar energy system and fed back into the grid.
System owners are billed for the net amount of electricity used each month, based on their monthly consumption and generation readings from the net metering meter. Any excess generation is carried over to the next month, up to a cumulative limit of 300 kWh. For more details feel free to contact us by clicking here