ISLAMABAD – Pakistan is experiencing a rapid solar energy boom driven by soaring electricity costs, frequent power outages, and the availability of cheap imported solar panels, and now the government is looking to cash this by charging a license fee from users.
Power Division tightened its grip on the rapidly growing solar sector, making it mandatory for every consumer to get license from the National Electric Power Regulatory Authority (NEPRA) before generating electricity at their homes or offices.
The new amendments sparked concern among solar users, as they introduced fresh financial and regulatory hurdles that did not exist before.
Under revised framework, consumers must now pay a licensing fee based on their system’s capacity, along with submitting a pay order in NEPRA’s name as part of the application process. The government scrapped the fee exemption for solar systems up to 25 kilowatts, a move that previously encouraged small-scale adoption.
The new charges will amount to Rs1,000 per kilowatt, increasing upfront cost for households and businesses turning to solar energy.
The policy replaces earlier arrangements with a net billing system, meaning consumers will be compensated differently for the electricity they supply back to the grid—potentially impacting long-term savings.
In Pakistan’s solar landscape, nost of growth is happening through rooftop systems on homes, businesses, farms, and industries. The installed solar capacity is estimated to reach around 30-33 GW, with the vast majority coming from distributed and net-metered systems rather than utility-scale plants.
Asperestimates, solar power is expected to supply roughly 20% of country’s electricity, making it one of the top energy sources in the mix. This shift is reshaping the power system, reducing dependence on the national grid during daytime, and creating challenges for utilities.
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