NEPRA Clarifies Solar Licensing Rules Confusion

NEPRA has clarified solar licensing rules after reports of misinformation, outlining approval requirements for net billing users and responsibilities of distribution companies.

The regulator stated that off grid solar systems do not require its approval, while systems under 25 kilowatts remain under distribution companies jurisdiction.

NEPRA confirmed that net billing users must obtain approval, while previous regulations required licensing only for systems exceeding 25 kilowatts connected to the national electricity grid.

For on grid solar systems, a one time fee of one thousand rupees per kilowatt is applicable under the existing regulatory framework for approvals.

The authority also stated that no new taxes have been imposed on solar installations despite concerns raised following recent policy discussions and public confusion.

Earlier, Ministry of Energy announced mandatory licensing for all solar users, introducing revised requirements for electricity generation under updated rules issued by the Power Division.

Under the amended policy, users are required to obtain a NEPRA license and submit a pay order based on system load and electricity generation capacity.

Previously, distribution companies issued free licenses for systems up to 25 kilowatts, but new regulations require users to pay one thousand rupees per kilowatt.

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