Pakistan's power minister asks NEPRA to scrap fees, licensing for small solar users

Pakistan's Power Division has formally requested the National Electric Power Regulatory Authority (NEPRA) to abolish fees and remove licensing requirements for solar power consumers using systems of 25 kilowatts or less.

The division stated on Sunday that the request was made at the directives of Power Minister Sardar Awais Ahmad Khan Leghari.

The minister has sought a revision of current prosumer regulations that require small-scale solar users to obtain NEPRA approval and pay application fees — a departure from the framework that governed the sector for nearly a decade.

Under regulations introduced in 2015, solar systems of up to 25 kilowatts did not require NEPRA licensing. Applications in this category were processed directly by electricity distribution companies without fees, providing a significant financial incentive for household consumers.

The revised framework, however, centralizes approval authority with NEPRA and imposes fees even on small installations.

The Power Division said it had previously warned NEPRA about the adverse impact of these changes and had urged a return to the earlier rules. The Private Power and Infrastructure Board had also raised concerns and called for the restoration of the previous approval mechanism for smaller systems.

Opposition to the revised framework has been broad. During public hearings, the Pakistan Solar Association and the Pakistan Alternative Energy Association both argued that shifting approval authority away from distribution companies creates unnecessary bureaucratic hurdles for consumers.

The Power Division warned that the current regulatory structure could hinder national efforts to promote renewable energy adoption and has urged NEPRA to restore the pre-existing framework.