National Electric Power Regulatory Authority has abolished the Rs1,000 one-time fee and removed licensing requirements for solar consumers installing systems of up to 25 kilowatts (kW) in residential and small commercial settings, in a move expected to support rooftop solar adoption across Pakistan.
The decision follows directives from Federal Minister for Power Sardar Owais Ahmed Khan Leghari, after the Power Division requested the regulator to withdraw licensing requirements for smaller solar installations.
According to an official notification, solar systems up to 25kW will no longer require a license from NEPRA, effectively restoring the framework that existed under the Distributed Generation and Net Metering Regulations 2015.
Previously, systems within this capacity range were exempt from licensing, and applications were handled directly by electricity distribution companies (DISCOs) without any fee. However, later Prosumer Regulations shifted approvals to NEPRA and introduced fees, raising concerns among consumers and industry stakeholders.
The Power Division had argued that the revised regulatory structure could discourage rooftop solar adoption by increasing compliance burdens for small-scale users.
Industry groups, including the Pakistan Solar Association, had also voiced concerns that centralized approvals would lead to delays and unnecessary bureaucracy, potentially slowing growth in the renewable energy sector.
The Private Power and Infrastructure Board had earlier recommended restoring the previous mechanism to facilitate smoother deployment of distributed solar systems.
With the latest move, the government aims to remove barriers for households and small businesses looking to adopt solar power, as demand for alternative energy solutions continues to rise amid high electricity costs.
