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 scheme.
Following the special directions of Federal Minister for Power Awais Leghari, the Power Division formally approached the National Electric Power Regulatory Authority (Nepra), requesting the removal of the licence condition for small-scale solar users.
Nepra has now approved the request, paving the way for a simplified regulatory framework for household and small commercial solar installations. Consumers with solar systems of 25kW or less will not have to pay a one-time fee of Rs1,000/kW to the regulator.
According to officials, the decision will significantly ease the procedural burden on new and existing solar users. The existing notification will come into effect from February 9, 2026.
Earlier, reports regarding mandatory licensing for all solar users had sparked confusion, prompting the Power Division to term such claims misleading.
Last week, the ministry reiterated that licensing rules already existed under Nepra’s regulatory domain and were being implemented through distribution companies, not newly introduced by the federal government.
It clarified that off-grid solar users did not require its approval for installation, but on-grid consumers were subject to regulatory procedures under net metering rules.
Officials stated that the one-time fee of Rs1,000/kW was applicable for on-grid solar connections and stressed that no new tax has been imposed on solar systems.
