Pakistan Regulator Scraps License Fees for Small Solar Users

In a significant win for solar energy advocates and consumers, Pakistan's National Electric Power Regulatory Authority (Nepra) has heeded public outcry and reversed its decision to impose licensing fees on small-scale solar net-metering systems. This move, effective February 9, 2026, abolishes the requirement for licenses and the associated Rs1,000 per kW fee for systems up to 25 kilowatts, a stark contrast to the burdensome regulations recently introduced.

The Power Division, under pressure from widespread criticism of "taxing sunlight," formally directed Nepra to retract the new rules. Nepra's swift compliance, issuing a notification just days after the Power Division's directive, underscores the government's stated commitment to a pro-solar, pro-consumer energy policy. Power Minister Awais Leghari reiterated this stance, emphasizing the government's dedication to removing barriers and reducing costs for citizens embracing clean energy.

This development is a welcome reprieve for residential users who benefited from the previous 2015 regulations. Under those rules, systems up to 25kW were exempt from licensing and fees, with applications handled by power distribution companies. The recent attempt to centralize approvals with Nepra and introduce fees threatened to stifle the growth of distributed generation, a concern flagged by industry bodies like the Pakistan Solar Association and the Private Power and Infrastructure Board.

The reversal highlights a dynamic where public pressure and industry advocacy can influence regulatory decisions in Pakistan. While Nepra has sometimes been perceived as a rubber stamp for government directives, this instance demonstrates a responsiveness to public sentiment and a recognition of the importance of solar energy in the national drive towards alternative power sources. The decision ensures that the fiscal incentives for residential solar adoption remain intact, fostering a more accessible and affordable clean energy future for Pakistan.

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Our government is pro-solar, pro-consumer, and committed to clean energy. We want to remove unnecessary barriers, reduce costs, and provide as much relief as possible to the people of Pakistan.