Requests to revise its rules and seek removal of fee exemption from licensing requirements
Solar panel. Photo: ANADOLU AGENCY
ISLAMABAD:
The Power Division on Sunday formally asked Nepra to revise its rules and seek removal of charges and a license exemption for solar consumers with systems below 25 kilowatts (kW), following a directive from Energy Minister Awais Leghari.
The Power Division said in a statement that it had earlier informed Nepra of the adverse impact of the decision and had requested a return to the earlier regulatory framework.
Under the 2015 rules, systems with a capacity of 25kW or less did not require a Nepra license. Applications in this category were processed directly by distribution companies without any fee, providing a significant financial incentive for domestic consumers. But the new “prosumer rules” have centralized the approval authority with Nepra, even for small plants, and introduced application fees.
The Power Division noted that the Private Power and Infrastructure Board (PPIB) had also expressed concern over the change and urged Nepra to retain the earlier approval mechanism for systems up to 25kW.
During public hearings, Pakistan Solar Association, Premier (Private) Limited, Pakistan Alternative Energy Association and Siddiq Renewable Energy (Private) Limited also formally objected to the changes. They argued that moving the approval authority away from distribution companies would create unnecessary bureaucratic hurdles for consumers.
Read more: Solar net metering not taxed: NEPRA
Pursuant to the minister’s directives, the Power Division formally requested Nepra to restore the earlier mechanism for systems up to 25kW, warning that the current procedure could hinder efforts to promote renewable energy at the national level.
In a statement issued on Friday, Nepra sought to clear the air on solar power licenses after reports confused consumers. It said all solar net billing consumers must obtain approval from Nepra.
Prior to new rules, it said, the regulator gave approvals for connections above 25 kW, while distribution companies (DISCOs) had the approval authority for connections below 25 kW.
It stressed that no new tax has been imposed on solar systems, adding that misinformation about solar licenses has spread, leading to user concerns.
On April 22, the Power Division declared misleading reports claiming that the federal government had made it mandatory for solar consumers to get a license from Nepra.
The reports stated that changes related to solar installations made it mandatory for all consumers who installed solar installations to obtain a license from the electricity regulator. The reports suggested that the federal government impose this requirement on all users who opt for net metering.
On Wednesday, a Power Division spokesperson refuted these claims and clarified that rules for obtaining licenses related to solar net metering already exist and fall strictly under Nepra’s jurisdiction as a regulator.
