On the instructions of Federal Minister for Power Sardar Awais Leghari, the Power Division has officially asked National Electric Power Regulatory Authority to remove application fees and end licensing requirements for solar users installing systems up to 25 kilowatts.
The Power Division said the current rules should be brought back in line with earlier regulations, as the new system could discourage people from adopting small-scale solar solutions.
Under the Distributed Generation and Net Metering Regulations introduced in 2015, solar systems with a capacity of up to 25kW did not require any license. Applications were handled directly by electricity distribution companies without any charges, which encouraged residential users to install solar systems.
However, under the new Prosumer Regulations, the approval process was shifted to NEPRA, and application fees were introduced even for smaller solar setups. This change raised concerns in the renewable energy sector.
The Power Division pointed out that the Private Power and Infrastructure Board had earlier warned that these changes could have a negative impact and had suggested continuing the old system for smaller installations.
Several organizations, including the Pakistan Solar Association, Primage (Pvt) Ltd, the Pakistan Alternative Energy Association, and Siddiq Renewable Energy (Pvt) Ltd, also expressed concerns. They said removing approval authority from distribution companies would create unnecessary delays and make the process more complicated.
Following the minister’s direction, the Power Division has now formally requested NEPRA to restore the previous system, which allowed small solar installations up to 25kW without fees or licensing requirements.
