Islamabad: The National Electric Power Regulatory Authority (NEPRA) has clarified that solar energy systems not connected to the national electricity grid do not require any licence from the regulator.
The statement aims to address confusion among consumers regarding recent changes in solar energy regulations, particularly those related to net metering and licensing requirements.
Off-Grid Solar Systems Fully Exempt
According to NEPRA officials, individuals and businesses operating independent solar systems—commonly known as off-grid installations—are not covered under the new regulatory framework.
They explained that the rules only apply to consumers who are connected to the national grid and participate in net metering or net billing arrangements. These systems allow users to sell excess electricity back to the grid.
Licensing Rules for Grid-Connected Users
Under the updated regulations, all grid-connected solar users will now be required to obtain a licence from NEPRA, regardless of system size.
Previously, licensing was mandatory only for installations above 25 kilowatts. However, the revised framework now extends this requirement to smaller systems as well, including those up to 25 kilowatts.
Officials said that a fee of Rs1,000 per kilowatt will be charged for issuing these licences.
Changes in Approval Process
Earlier, solar users with systems up to 25 kilowatts received approvals directly from their respective distribution companies (Discos), with no licensing fee. This process has now been shifted to NEPRA to improve regulatory oversight.
The new system is part of broader efforts to standardize solar energy integration into the national grid and ensure proper technical compliance.
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Net Metering Policy Adjustments
NEPRA has also recently updated its net metering policy. Applications submitted before February 8, 2026, will continue to be processed under the previous framework, providing relief to many pending applicants.
For applications submitted after that date, stricter conditions will apply. Consumers generating up to one megawatt of solar power will be required to sell surplus electricity at the national average purchase price while purchasing electricity from the grid at standard tariff rates.
Impact on Renewable Energy Sector
Officials estimate that the revised policy could still support significant renewable energy growth, with more than 250 megawatts of clean electricity expected to be added to the national grid through pending applications.
Over 5,000 consumers are also expected to benefit from previously approved net metering contracts under the earlier rules.
The clarification comes at a time when Pakistan is witnessing rapid growth in rooftop solar adoption due to rising electricity costs and energy shortages.
While NEPRA maintains that the new framework is aimed at improving regulation and grid stability, stakeholders in the renewable energy sector are closely monitoring its long-term impact on investment and adoption trends.
