Is Govt Removing NEPRA Charges and Licensing for Small Solar Users?

Acting on the directive of Federal Minister for Power Sardar Awais Leghari, the Power Division has formally requested the National Electric Power Regulatory Authority (NEPRA) to abolish application fees and remove licensing requirements for solar consumers installing systems of up to 25 kilowatts.

The Power Division urged the regulator to align current rules with earlier regulations since the revised framework could discourage small-scale solar adoption.

Under the Distributed Generation and Net Metering Regulations introduced in 2015, solar systems with a capacity of 25kW or below were exempt from licensing requirements.

Applications were processed directly by electricity distribution companies (DISCOs) without any fee, a policy widely viewed as a financial incentive for residential consumers.

However, the newly introduced Prosumer Regulations shifted approval authority to NEPRA and imposed application fees even on small solar installations, triggering concerns within the renewable energy sector.

The Power Division noted that the Private Power and Infrastructure Board (PPIB) had earlier highlighted the potential negative impact of the regulatory change and recommended retaining the previous approval mechanism for smaller systems.

Organizations, including the Pakistan Solar Association, Primage (Pvt) Ltd, the Pakistan Alternative Energy Association, and Siddiq Renewable Energy (Pvt) Ltd argued that removing approval powers from DISCOs would create unnecessary bureaucratic hurdles and slow solar deployment.

Following the minister’s directive, the Power Division has now formally urged NEPRA to reinstate the earlier fee-free and license-exempt regime for solar systems up to 25kW.