Islamabad: The Power Division has formally requested the National Electric Power Regulatory Authority (NEPRA) to remove licensing requirements and application fees for solar consumers with systems up to 25 kilowatts, in a move aimed at supporting the country’s growing shift toward renewable energy.
The directive was issued on the instructions of Federal Minister for Power Awais Leghari, who stated that the government is committed to reducing unnecessary regulatory barriers and lowering costs for consumers adopting solar energy.
Push to Restore Earlier Regulatory Framework
According to official statements, the Power Division has urged NEPRA to revert to the earlier 2015 regulatory framework, under which small solar systems (up to 25 kW) were exempt from licensing requirements.
Previously, such systems were approved directly by Distribution Companies (Discos), without any application fee. This approach was widely considered a key incentive for residential and small commercial solar installations.
Concerns Over New Prosumer Regulations
Under recently introduced prosumer regulations, approval authority has been shifted from Discos to NEPRA, and application fees have been imposed even on small-scale solar systems.
Officials acknowledged that this change has raised concerns among stakeholders, including solar industry associations and private energy firms. Several groups argued during public hearings that the new process creates additional bureaucratic hurdles and could slow down solar adoption.
Among those raising objections were organizations such as the Pakistan Solar Association and other renewable energy stakeholders, who warned that increased regulatory complexity may discourage investment in small-scale solar projects.
The Power Division has formally requested NEPRA to review the recent framework and restore maximum facilitation for solar consumers up to 25kW in the form of zero license fee and no requirement of licenses up to 25kW.
Our government is pro-solar, pro-consumer, and committed to… https://t.co/FY0cxSSmGy
— Awais Leghari (@akleghari) April 26, 2026
Industry and Policy Debate
The Private Power and Infrastructure Board (PPIB) also reportedly highlighted concerns over the regulatory shift and recommended maintaining the previous approval system for small installations.
Industry stakeholders argue that simplifying procedures for small consumers is essential at a time when Pakistan is actively trying to expand its renewable energy capacity to address rising electricity demand and high energy costs.
NEPRA Clarifies Solar Rules: Off-Grid Systems Exempt from Licensing Requirement
NEPRA’s Position and Clarification
Earlier, NEPRA clarified that its licensing rules do not apply to off-grid solar systems. The regulations primarily affect grid-connected users participating in net metering or net billing systems.
The regulator also stated that net billing is being introduced for new consumers, and all grid-connected solar users will fall under updated approval mechanisms.
Policy Direction and Energy Goals
The latest move by the Power Division reflects a broader government effort to accelerate clean energy adoption and reduce reliance on conventional power sources. Officials say simplifying solar regulations is part of a strategy to encourage households and small businesses to invest in renewable energy solutions.
If NEPRA accepts the proposal, it could significantly reduce entry barriers for small-scale solar users and further boost rooftop solar growth across Pakistan. However, the final regulatory direction will depend on consultations between NEPRA, the Power Division, and industry stakeholders in the coming weeks.
