By SKM
April 2026
ISLAMABAD: In a move aimed at accelerating rooftop solar adoption, Pakistan’s Power Division has formally urged the National Electric Power Regulatory Authority (NEPRA) to abolish application fees and licensing requirements for small-scale solar consumers using systems of up to 25 kilowatts.
The request follows directions from Federal Minister for Power Sardar Awais Ahmed Khan Leghari, who has pushed for restoring earlier regulatory practices that treated small distributed generation systems as low-risk and easy to deploy.
Under regulations introduced in 2015, solar installations of 25 kW or below were exempt from licensing and did not incur application fees. Distribution companies (DISCOs) handled approvals directly, making the process relatively quick and cost-effective for residential users. However, recent Prosumer Regulations shifted approval authority to NEPRA and introduced fees even for small systems—a change that industry stakeholders say has slowed momentum in the renewable energy sector.
In its communication, the Power Division warned that the new framework risks undermining Pakistan’s broader clean energy goals by introducing unnecessary administrative hurdles. It noted that the Private Power and Infrastructure Board (PPIB) had also flagged the issue, recommending that small-scale solar systems remain under the simpler, decentralized approval regime.
Industry voices echoed these concerns during public consultations. Organizations including the Pakistan Solar Association and the Pakistan Alternative Energy Association argued that centralizing approvals has complicated procedures for consumers and installers alike, discouraging investment in rooftop solar.
Officials say the proposed rollback would remove financial and procedural barriers for households and small businesses, making solar adoption more accessible at a time when energy costs remain a pressing concern.
NEPRA is expected to review the request and issue a determination in due course. Until then, the current regulations remain in effect. Ends
