Power division asks Nepra to abolish fee, licence rule for solar systems up to 25kW

The Power Division has written to the National Electric Power Regulatory Authority (Nepra), asking it to scrap the application fee and licensing requirement for solar users with systems of up to 25 kilowatts.

According to a statement issued on Sunday, the move follows directions of Federal Minister for Power Awais Leghari. The Power Division said it had already cautioned Nepra about the possible downsides of the new policy and had urged the regulator to align it with earlier rules.

The request comes just a day after Nepra clarified that solar users who are not connected to the national grid do not need any licence. The regulator also said there is currently no proposal under consideration to change that position.

Under regulations introduced in 2015, small-scale distributed generation systems of up to 25 kilowatts were exempt from licensing. At the time, applications were handled directly by distribution companies (Discos) without any fee, which served as a key incentive for households to adopt solar energy.

However, under the new Prosumer Regulations, the approval process has been shifted to Nepra, and application fees have been introduced even for these smaller systems.

The Power Division noted that the Private Power and Infrastructure Board (PPIB) had also raised concerns over the change and urged Nepra to keep the earlier system in place for installations of 25 kilowatts or less.

Tweet by Awais Leghari

Several stakeholders echoed similar concerns during public hearings. These included the Pakistan Solar Association, Primage Pvt Ltd, the Pakistan Alternative Energy Association, and Siddiq Renewable Energy Pvt Ltd. They argued that shifting approval powers away from Discos would add unnecessary red tape and make the process more complicated.

Following the minister’s instructions, the Power Division has now formally urged Nepra to restore the previous system for small-scale solar users, warning that the current approach could slow down the country’s transition towards renewable energy.

Earlier, Nepra officials had explained that its regulations do not apply to off-grid solar users. They said the rules only cover consumers connected to the national grid under net metering and net billing systems.

They also stated that net billing has been introduced only for new users, and that all grid-connected solar consumers—regardless of system size—will now be required to obtain a licence from the regulator.