ISLAMABAD: The Power Division has formally urged the National Electric Power Regulatory Authority (Nepra) to abolish the licence requirement and associated fee for solar consumers with systems up to 25 kilowatts, in a move aimed at easing public concerns and promoting renewable energy adoption.
The directive, issued on the instructions of Federal Power Minister Awais Leghari, calls for the removal of application fees and restoration of the earlier regulatory framework that exempted small-scale solar users from licensing requirements.
In its statement, the Power Division noted that under the 2015 distributed generation regulations, solar systems of 25kW or below did not require licences from Nepra. Instead, applications were processed directly by power distribution companies (Discos) without any fee — a policy that had significantly encouraged residential solar uptake.
However, recent Prosumer Regulations shifted approval authority to Nepra and introduced a one-time licence fee, drawing widespread criticism from consumers and industry stakeholders. The Power Division acknowledged that it had previously warned the regulator about the potential negative impact of these changes and had called for alignment with the earlier, more facilitative regime.
Minister Leghari reiterated the government’s stance, stating that it remains “pro-solar, pro-consumer, and committed to clean energy,” with a focus on removing unnecessary barriers and reducing costs for citizens.
Key industry players, including the Pakistan Solar Association, had also raised objections during public hearings, arguing that centralising approvals with Nepra would create bureaucratic hurdles and slow down solar adoption.
The Private Power and Infrastructure Board (PPIB) had similarly flagged concerns over the regulatory shift, advocating for consistency with the previous framework for small-scale systems.
The latest development comes after weeks of public criticism over what many termed as “taxing sunlight,” particularly following the introduction of licence fees earlier this year. The controversy had intensified amid broader policy shifts, including attempts to transition from net metering to net billing, which were partially rolled back after backlash.
The Power Division has now requested Nepra to reinstate the earlier system, warning that the current regulatory approach could hinder Pakistan’s progress toward clean energy goals and discourage investment in distributed solar generation.
Story by Khaleeq Kiani
