NEPRA Removes Licence Requirement and Fees for Solar Systems up to 25kW
ISLAMABAD: The National Electric Power Regulatory Authority (NEPRA) has abolished the licence requirement and application fee for solar energy consumers installing systems of up to 25 kilowatts, in a major policy shift aimed at encouraging distributed solar generation.
According to an official notification, NEPRA has amended its prosumer regulations, removing licensing fees for small-scale distributed generation systems up to 25kW. However, systems above this capacity will be subject to a one-time fee of Rs1,000 per kilowatt.
The revised policy has been made applicable retrospectively from February 9, 2026.
The decision comes shortly after the Power Division directed NEPRA to withdraw the earlier requirement of licences and associated fees for small solar users, following public criticism and concerns over rising regulatory burdens.
Federal Minister for Power Sardar Awais Ahmed Khan Leghari had reportedly pushed for a reversal of the recent changes, which had shifted approval authority from distribution companies to NEPRA and introduced additional costs for small-scale users.
Under the previous 2015 framework, solar systems of up to 25kW were exempt from licensing requirements, with approvals handled directly by distribution companies without any fees. This was considered a key incentive for residential solar adoption.
However, the updated prosumer regulations had initially centralized approvals under NEPRA, sparking backlash from industry stakeholders and renewable energy groups.
During public consultations, organisations including the Pakistan Solar Association and other renewable energy stakeholders raised concerns that the new system would create unnecessary bureaucratic hurdles and discourage solar adoption.
The Power Division also cited concerns raised by the Private Power and Infrastructure Board (PPIB), which recommended maintaining consistency with the earlier regulatory regime for small-scale solar installations.
NEPRA’s latest decision is expected to reduce administrative barriers and further accelerate rooftop solar adoption across the country, particularly in residential and small commercial sectors.
