The Power Division has formally requested the National Electric Power Regulatory Authority (NEPRA) to abolish the licensing requirement and application fee for solar users with systems of 25 kW or less.
In a formal communication, the Power Division said it supports efforts to improve the distributed energy framework, but recent regulatory changes affecting small-scale consumers require urgent revision to encourage the growth of household-scale renewable energy.
Previously, systems of 25 kW and below were handled directly by distribution companies (DISCOs), without requiring a NEPRA license or any application fee. This approach made it easier and more affordable for residential and small business users to adopt solar energy.
However, under the new Prosumer Regulations, NEPRA has taken over approvals for all system sizes and introduced application fees across the board—including for smaller installations that were earlier exempt.
During public consultations, the Private Power and Infrastructure Board highlighted this shift and urged NEPRA to retain the earlier approval process for small systems within the updated regulations.
Several industry stakeholders, including the Pakistan Solar Association and Pakistan Alternative Energy Association, also raised concerns. They argued that removing DISCOs from the approval process adds unnecessary bureaucracy for consumers.
The Power Division warned that applying fees to small-scale users and centralising approvals could create delays and discourage people from installing solar systems. It noted that the earlier decentralised model was more efficient and business-friendly.
The Division has therefore urged NEPRA to restore the previous system—allowing DISCOs to handle approvals for installations up to 25 kW and eliminating fees for such consumers—in line with past regulations.
