The Power Division has formally urged the National Electric Power Regulatory Authority to remove licensing requirements and associated fees for solar users with systems up to 25 kilowatts in Pakistan. The request follows directives from Energy Minister Awais Leghari and aims to simplify access for domestic solar consumers. Officials say the move is intended to encourage renewable energy adoption and reduce regulatory barriers for small-scale installations.
According to the Power Division, earlier rules introduced in 2015 allowed systems up to 25 kilowatts to operate without a formal licence from NEPRA. Under that framework, distribution companies handled applications directly without charging any fees, which encouraged households to invest in solar energy. However, the updated prosumer regulations transferred approval authority to NEPRA and introduced new licensing costs even for smaller systems.
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As a result, several stakeholders have raised concerns about the revised process, arguing that it has created unnecessary administrative hurdles for consumers. The Private Power and Infrastructure Board also expressed reservations and recommended a return to the earlier approval system for small solar installations. Industry groups say centralizing approvals at NEPRA increases delays and discourages households from adopting renewable energy solutions.
Meanwhile multiple renewable energy associations, including solar industry representatives, have formally objected during public hearings on the new regulations. They argue that shifting approval authority away from distribution companies adds complexity and increases compliance costs for small users. Consequently they have called for a simplified system that promotes faster adoption of clean energy across residential sectors.
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In response, NEPRA clarified that all solar net billing consumers are required to obtain regulatory approval, although no new tax has been imposed on solar systems. The regulator also stated that confusion has spread due to misinformation regarding licensing requirements, leading to unnecessary public concern. Officials emphasized that the existing regulatory framework continues to govern approvals under established rules.
Earlier the Power Division also rejected claims that the government had introduced mandatory licensing for all solar users, stating that such requirements already existed under NEPRA’s jurisdiction. Officials reiterated that the current debate is focused on simplifying procedures rather than imposing new restrictions. Therefore the ministry has now formally urged NEPRA to restore the previous mechanism to support wider renewable energy growth.