Request to review its regulations, seeking to remove fee exemption from licensing requirements
Solar panel. Photo: AGENCE ANADOLU
ISLAMABAD:
The Energy Division on Sunday formally asked Nepra to review its regulations, seeking removal of fees and license exemption for solar consumers with systems of less than 25 kilowatts (kW), following a directive from Energy Minister Awais Leghari.
The Power division said in a statement that it had previously informed Nepra of the negative impact of the decision and requested a return to the previous regulatory framework.
Under the 2015 regulations, systems with a capacity of 25 kW or less did not require a Nepra license. Requests in this category were processed directly by the distribution companies, without any fees, which constituted a significant financial incentive for domestic consumers. However, the new “prosumer regulations” centralized approval authority with Nepra, even for small-scale installations, and introduced application fees.
The Energy Division noted that the Private Power and Infrastructure Board (PPIB) had also expressed concerns over the change and urged Nepra to retain the earlier approval mechanism for systems up to 25 kW.
During public hearings, the Pakistan Solar Association, Premier (Private) Limited, Pakistan Alternative Energy Association and Siddiq Renewable Energy (Private) Limited also formally opposed the changes. They argued that removing approval power from distribution companies would create unnecessary bureaucratic hurdles for consumers.
Learn more: Untaxed solar net metering: NEPRA
Acting on the minister’s directives, the Energy Division formally requested Nepra to reinstate the previous mechanism for systems up to 25 kW, warning that the current procedure could hamper efforts to promote renewable energy at the national level.
In a statement released Friday, Nepra sought to provide clarity regarding solar licensing after reports confused consumers. He said all solar net metering consumers must get approval from Nepra.
Before the adoption of new regulations, the statement said, the regulator granted approvals for connections above 25 kW, while distribution companies (DISCO) held approval authority for connections below 25 kW.
He stressed that no new taxes had been imposed on solar systems, adding that misinformation about solar licensing had spread, sparking concerns among users.
On April 22, the Energy Division declared misleading reports claiming that the federal government had made it mandatory for solar consumers to obtain a license from Nepra.
Reports indicated that the changes related to solar systems made it mandatory for all consumers installing solar installations to obtain a license from the energy regulator. Reports suggest that the federal government has imposed this requirement on all users opting for net metering.
On Wednesday, a spokesperson for the Power division rejected these claims and clarified that regulations for obtaining licenses related to solar net metering already exist and fall strictly within Nepra’s purview as regulator.
