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Agencies

NEPRA clarifies no licence required for off-grid solar systems

Published on: April 26, 2026 11:55 AM

The National Electric Power Regulatory Authority (Nepra) clarified on Saturday that solar consumers who are not connected to the national grid do not require any licence from the regulator, and no such proposal is currently under consideration.

In a statement, Nepra officials explained that its regulations cannot be applied to off-grid solar consumers, adding that these rules only cover users falling under net metering and net billing categories, which are limited to those connected to the national grid.

They added that under the new Nepra regulations, net billing has been introduced solely for new consumers, and all solar users connected to the national grid with any level of load will now be required to obtain a licence from the authority.

The power regulatory authority previously issued licences only to solar users with system capacities exceeding 25 kilowatts, but under the revised rules, licences for systems of 25 kilowatts and below will also be issued by Nepra, with a fee of Rs1,000 per kilowatt.

According to the officials, earlier, solar consumers with loads up to 25 kilowatts obtained approvals from their respective distribution companies, and no fee was applicable for systems within that capacity range.

The officials said that earlier, solar users with system capacities of up to 25 kilowatts secured approvals from their respective distribution companies (Discos), with no fee imposed on installations within that capacity range.

Earlier this month, Nepra had issued a separate decision allowing all net metering applications submitted up to February 8, 2026, to be processed under the earlier regulatory framework, easing uncertainty for rooftop solar investors, The News reported.

The decision is expected to add more than 250 megawatts of clean electricity to the national grid and benefit over 5,000 pending applicants through seven-year net metering contracts, while distribution companies, including K-Electric, implement earlier rules for eligible applications.

For applications submitted after February 8, households, businesses, and small industries generating up to one megawatt must sell surplus electricity at the national average purchase price, while buying power at standard tariffs under stricter technical and financial requirements.

Filed Under: Business Tagged With: National Electric Power Regulatory Authority, NEPRA, solar systems

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