ISLAMABAD (Dunya News) – Solar consumers across Pakistan have received a significant regulatory relief as the National Electric Power Regulatory Authority (Nepra) has removed the requirement of obtaining a licence for net metering systems up to 25 kilowatts.
The decision is expected to simplify procedures for households and small businesses adopting renewable energy solutions. The move comes amid growing demand for solar power as electricity costs continue to rise and more consumers shift towards alternative energy sources.
The development follows a formal request from the Power Division, which acted on the special direction of Federal Minister for Energy Sardar Awais Ahmad Khan Leghari. The ministry had sought Nepra’s approval to eliminate the licensing condition for solar users operating systems of 25kW or below under net metering arrangements. Officials argued that the existing requirement created unnecessary administrative hurdles for small-scale users, discouraging wider adoption of solar technology.
NEPRA has now approved the proposal, formally abolishing the licence condition for consumers within this category. The decision applies specifically to net metering users installing solar systems with a capacity of 25 kilowatts or less, a segment largely comprising residential consumers, small commercial units and community-level installations. With the approval in place, such users will no longer need to go through the licensing process previously mandated under regulatory guidelines.
Following the approval, Nepra issued an official notification, making the decision immediately applicable. The regulatory change is expected to streamline the onboarding process for new solar consumers and reduce delays that were previously associated with licensing formalities. Energy sector stakeholders view the move as part of broader efforts to encourage distributed generation and promote renewable energy adoption across the country.
The Power Division had emphasised that easing regulatory requirements for small-scale solar users would help accelerate the transition towards cleaner energy while reducing pressure on the national grid. The decision is also aligned with ongoing policy discussions aimed at expanding net metering capacity and encouraging private investment in renewable energy infrastructure.
Industry observers note that Pakistan has seen a steady rise in solar installations in recent years, particularly in urban areas where electricity costs and load-shedding concerns have driven demand. The removal of the licensing requirement is expected to further boost interest among new consumers considering investment in rooftop solar systems.