ISLAMABAD:
In a major relief for 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 system.
Following special instructions from Federal Minister for Power Awais Leghari, the Power Division has formally approached the National Electric Power Regulatory Authority (Nepra), requesting removal of the license condition for small-scale solar users.
Nepra has now approved the application, paving the way for a simplified regulatory framework for small-scale domestic and commercial solar installations. Consumers with solar systems of 25 kW or less will not have to pay a one-time charge of Rs 1,000/kW to the regulator.
Officials say the decision will significantly ease the procedural burden on new and existing users of solar energy. The existing notification will come into force on February 9, 2026.
Previously, reports of mandatory licensing for all solar users had caused confusion, prompting the Energy Division to call the claims misleading.
Last week, the ministry reiterated that licensing rules already existed in Nepra’s regulatory area and were implemented by distribution companies, not newly introduced by the federal government.
He clarified that off-grid solar users did not need his approval for installation, but on-grid consumers were subject to regulatory procedures under net metering rules.
Officials said a one-time charge of Rs 1,000/kW was applicable for solar grid connections and stressed that no new tax had been imposed on solar systems.
