The National Electric Power Regulatory Authority (NEPRA) has scrapped a licensing requirement and associated fees for small-scale solar net-metering consumers. The decision applies to users with systems under 25 kilowatts (kW) and follows a direct intervention from the Power Division.
The regulatory shift removes the Rs1,000 per kW fee that had recently been imposed on residential and small commercial prosumers.
According to a notification issued by the regulator, the amendment is backdated to February 9, 2026. While small users are now exempt, systems exceeding the 25kW threshold must still pay a one-time fee of Rs1,000 per kilowatt.
This reversal comes after the Power Division faced public backlash over policies described as taxing sunlight.
On Sunday, the Power Division confirmed it had instructed NEPRA to align its rules with the 2015 regulations, which allowed Distribution Companies (Discos) to process small-scale applications without central licensing or fees.
Power Minister Awais Leghari addressed the move on X, stating the government intends to “remove unnecessary barriers, reduce costs, and provide as much relief as possible to the people of Pakistan”.
He characterized the administration as “pro-solar” and “pro-consumer.”
Prior to this notification, NEPRA member Amina Ahmed had indicated during a public hearing that the regulator was reviewing the government’s proposal but could not disclose policy decisions prematurely. The formal notification was released just hours after those comments.
The now-withdrawn Prosumer Regulations had centralized approval authority within NEPRA, a move that stakeholders argued created bureaucratic delays.
Organizations including the Pakistan Solar Association and the Pakistan Alternative Energy Association had formally objected to the changes, warning that shifting authority away from Discos would hinder the adoption of renewable energy.
The Power Division had previously attempted to transition from net-metering to net-billing to reduce financial benefits for solar users but retreated following public pressure. While the ministry initially distanced itself from the licensing fee claiming it was solely within NEPRA’s jurisdiction the Private Power and Infrastructure Board (PPIB) eventually flagged the negative impact of the regulatory shift.
