The National Electric Power Regulatory Authority (NEPRA) has clarified recent confusion regarding Solar licensing rules in Pakistan. Officials said misleading information had been circulating, creating uncertainty among consumers planning to install solar systems.
According to NEPRA, different categories of Solar users fall under separate regulatory requirements. Net-billing users must obtain approval from NEPRA. However, systems with a capacity of up to 25 kilowatts are handled by distribution companies. Off-grid Solar systems, which are not connected to the national grid, do not require NEPRA approval.
Under earlier regulations, NEPRA only issued licenses for systems exceeding 25 kilowatts. Smaller systems were managed by local distribution companies. For on-grid installations, a one-time fee of PKR 1,000 per kilowatt has been applicable. The authority also confirmed that no new taxes have been introduced on Solar installations.
The clarification comes after reports suggested that new licensing requirements were being imposed on all users. Earlier this week, the Ministry of Energy announced changes requiring individuals installing Solar systems to obtain a license from NEPRA. This created confusion among consumers about the scope of the new rules.
NEPRA sources explained that under the revised framework, users generating electricity through Solar systems may need to obtain a license depending on their system type and capacity. The updated rules aim to streamline the process and ensure proper regulation of electricity generation.
Previously, distribution companies were allowed to issue licenses for systems up to 25 kilowatts. In many cases, these licenses were issued free of cost. However, under the new amendments introduced by the Power Division, users are now required to pay a fee based on their system load.
Consumers will need to submit a pay order in NEPRA’s name when applying for a license. The fee remains set at Rs 1,000 per kilowatt for applicable systems. Officials said the updated policy is intended to improve transparency and standardize procedures across the country.
Experts believe that clear guidelines will help boost confidence in the Solar sector. As more households and businesses shift toward renewable energy, proper regulation is essential to ensure stability and efficiency.
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Overall, NEPRA’s clarification aims to remove confusion and provide a clear framework for Solar users. The updated rules are expected to support growth while maintaining regulatory oversight.
