ISLAMABAD (Dunya News) - The Power Division has called on the National Electric Power Regulatory Authority (NEPRA) to remove the licensing requirement and associated fees for solar energy users with systems up to 25 kilowatts.
In a statement issued on Sunday, the Power Division said that, on the instructions of Power Minister Awais Leghari, it has formally requested NEPRA to review its regulations and abolish both the application fee and the licensing requirement for small-scale solar consumers.
The ministry said it had already raised concerns with NEPRA earlier, urging the regulator to revert to the previous framework. Under the 2015 rules, solar installations of up to 25kW were exempt from licensing, and applications were handled directly by distribution companies without any fee, encouraging residential solar adoption.
However, the updated Prosumer Regulations shifted approval authority to NEPRA and introduced licensing fees even for smaller systems, a move that triggered criticism from stakeholders and renewable energy advocates.
The Power Division noted that the Private Power and Infrastructure Board (PPIB) had also objected to the change, recommending consistency with the earlier system. Similarly, several industry groups and solar energy associations raised concerns during public hearings, arguing that centralizing approvals with NEPRA would create unnecessary administrative hurdles.
Following the minister’s directive, the Power Division has now formally pushed for reinstating the earlier procedure for systems of 25kW or below, warning that the current setup could slow down the country’s transition toward renewable energy.
The issue has sparked wider debate in recent months over net metering policies and regulatory charges, with critics accusing authorities of discouraging solar adoption through additional financial and bureaucratic barriers.