NEPRA announces big relief for solar users in Pakistan

ISLAMABAD: In a major relief for solar energy consumers, the National Electric Power Regulatory Authority (NEPRA) has abolished the licensing requirement for solar users with systems of 25 kilowatts and below, ARY News reported.

According to an official statement, NEPRA made the decision on the request of the Power Division, effectively easing regulatory conditions for small-scale solar energy producers.

The decision follows directives from Federal Minister for Energy Awais Leghari, who had instructed the Power Division to pursue regulatory simplification for solar consumers.

Officials confirmed that after receiving a formal letter from the Power Division, NEPRA issued the notification to implement the change.

The move is expected to encourage wider adoption of solar energy across households and small businesses by reducing administrative hurdles and promoting cleaner, cost-effective energy solutions.

Also Read: Solar net metering: Power division rejects link to govt orders

Earlier, acting on directives from Sardar Awais Khan Leghari, the Power Division had formally asked the National Electric Power Regulatory Authority (NEPRA) to immediately scrap the newly introduced application fees for small-scale solar systems.

In a detailed memorandum, the division raised serious concerns over the NEPRA Prosumers Regulations 2026, which recently replaced the older 2015 net metering framework.

While the government acknowledges NEPRA’s broader efforts to streamline the power sector, officials stressed that these recent regulatory changes heavily penalize small residential consumers and require an urgent review to keep the country’s green energy transition on track.

Under the highly successful 2015 framework, solar applications of 25 kilowatts or less were processed quickly and directly by local Distribution Companies.

Everyday consumers did not need a formal NEPRA license or have to pay any application fees. This decentralized, free-of-charge process served as a powerful incentive for households and small businesses looking to switch to solar power.

However, the sweeping 2026 regulations had completely centralized the approval process under NEPRA and slapped application fees across the board, even on minor systems that were previously exempt. This abrupt policy shift sparked severe backlash from industry stakeholders and green energy advocates, who argue the new rules simply create unnecessary bureaucratic and financial roadblocks.