Nepra removes fees and reinstates license exemption for small solar users

The move follows Power Division’s request to review the rules after concerns about the impact on consumers

The National Electric Power Regulatory Authority (Nepra) on Tuesday waived fees and reinstated a license exemption for solar consumers with systems of less than 25 kilowatts (kW).

According to a notification issued today, under the revised framework, no fees or licenses will be required for solar consumers with systems below 25 kW.

However, users installing systems above this threshold will be subject to a one-time charge of Rs 1,000 per kW. The notification stated that the decision would apply retrospectively from February 9 this year.

The move comes after the Energy Division formally contacted Nepra on Sunday, requesting a review of its regulations and calling for the removal of fees and licensing requirements for small solar consumers. This request followed a directive from Energy Minister Awais Leghari.

Read: Power Division urges Nepra to waive fees for solar users below 25 kW

The Electricity Division highlighted that it had previously flagged the negative impact of the new rules and urged the regulator to align them with the previous framework.

Leghari said the government was “pro-solar, pro-consumer and committed to clean energy,” adding that efforts were underway to remove unnecessary barriers, reduce costs and provide maximum relief to the public.

According to the 2015 regulations, solar 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, thus providing a significant financial incentive to domestic consumers.

However, subsequent “prosumer regulations” centralized approval authority with Nepra, even for small-scale installations, and introduced application fees.

The proposed regulations have drawn criticism from consumers and industry stakeholders, with the Private Power and Infrastructure Board also warning against the regulatory change.

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