In a move aimed at promoting clean energy, National Electric Power Regulatory Authority (NEPRA) has scrapped the licensing requirement for solar systems up to 25 kilowatts, providing relief to households and small businesses across Pakistan. The regulator also announced that no application fee will be charged for these smaller installations.
The decision follows a request from the Power Division to return to earlier, simpler rules introduced in 2015. Under those regulations, small-scale solar users were exempt from licensing and fees, with applications handled directly by distribution companies.
Recent changes had tightened net metering rules, requiring all solar users—regardless of system size—to obtain approval from NEPRA and pay a fee of Rs1,000 per kilowatt. These measures drew strong criticism from industry stakeholders, prompting the government to reverse course.
The updated policy, implemented on the direction of Federal Power Minister Sardar Awais Ahmed Khan Leghari, restores ease of access for small solar adopters. However, systems above 25 kW will still require licensing and a one-time fee.
The decision takes effect from February 9, 2026. Pakistan’s growing solar adoption—estimated at over 50 gigawatts imported in recent years—has helped millions of households reduce exposure to rising energy costs.
