ISLAMABAD:
In a major relief to solar consumers, the government on Tuesday abolished the licensing requirement for users installing solar systems of 25 kilowatts (kW) and below under the net metering scheme.
Following the specific directions of the Federal Energy Minister Awais Leghari, the Power Division formally approached the National Electric Power Regulatory Authority (Nepra), requesting the removal of the license condition for small-scale solar users.
Nepra has now approved the request, paving the way for a simplified set of rules for household and small commercial solar installations. Consumers with solar systems of 25kW or less will not have to pay a one-time fee of Rs.1,000/kW to the regulator.
According to officials, the decision will significantly ease the procedural burden on new and existing solar users. The existing notification will come into force on 9 February 2026.
Earlier, reports of mandatory licensing for all solar users had sparked confusion, prompting the Power Division to term such claims as misleading.
Last week, the ministry reiterated that licensing rules already existed under Nepra’s regulatory domain and were implemented through distribution companies, not newly imposed by the federal government.
It clarified that off-grid solar users did not require their approval for installation, but on-grid consumers were subject to regulatory procedures under net metering rules.
Officials stated that the one-time fee of Rs.1,000/kW was applicable for solar grid connections and stressed that no new tax has been imposed on solar installations.
