Nepra clarifies solar licensing rules, dismisses claims of new tax

National Electric Power Regulatory Authority has clarified the situation regarding solar licensing, stating that misinformation has been circulating on the matter.

According to Nepra officials, incorrect information has been spread about solar licensing, adding that all solar net billing consumers will be required to obtain approval from Nepra.

Officials further explained that approval authority for connections with a capacity of less than 25 kilowatts previously rested with distribution companies, while off-grid consumers have no connection with Nepra’s approval process.

Nepra authorities stated that prior to the new regulations, the authority granted approvals for connections exceeding 25 kilowatts.

For on-grid solar connections, only a one-time fee of Rs1,000 per kilowatt has been set.

Officials also made it clear that no new tax has been imposed on solar energy.

The clarrification came after, the National Electric Power Regulatory Authority (NEPRA) ended the free facility for solar installations and made licensing mandatory for all system sizes, introducing a Rs1,000 per kW fee that increases costs for consumers nationwide.

The NEPRA had defended its decision to abolish the previously available free facility for small-scale solar installations, stating that the move is in line with amendments under the NEPRA Act and revised regulatory framework governing distributed generation (DG) systems.