ISLAMABAD, April 28, 2026: Pakistan’s power regulator has abolished the licensing requirement and application fees for small-scale solar users, in a major policy reversal aimed at accelerating rooftop solar adoption and easing public concerns over rising regulatory costs.
The National Electric Power Regulatory Authority (NEPRA) announced on Tuesday that consumers with solar systems of up to 25 kilowatts will no longer require a licence or pay any application fee, effectively rolling back recent changes introduced under its 2026 prosumer regulations.
The decision follows strong instructions from the Power Division and Federal Minister for Energy Awais Ahmed Khan Leghari, who directed regulators to simplify processes and remove barriers for residential and small business solar users amid growing criticism of the earlier policy shift.
According to the official notification, NEPRA withdrew ab initio the licensing requirement along with the Rs1,000 per kilowatt fee for systems up to 25kW. However, larger systems will still be subject to a one-time fee of Rs1,000 per kilowatt.
The revised rules are applicable from February 9, 2026, the regulator said.
The move reverses provisions introduced under the NEPRA Prosumers Regulations 2026, which had replaced the earlier 2015 net metering framework. Under the previous system, distributed solar installations up to 25kW were processed directly by distribution companies without any licensing or fees, a structure widely credited with encouraging household solar adoption.
The 2026 regulations, however, centralized approvals under NEPRA and introduced application charges even for small systems, triggering strong backlash from solar industry stakeholders, consumer groups, and renewable energy advocates.
During public hearings, multiple industry representatives, including the Pakistan Solar Association and renewable energy firms, warned that the new system would create unnecessary bureaucratic hurdles and discourage investment in clean energy.
Officials in the Power Division argued that the rollback is intended to restore investor confidence and align regulatory policy with Pakistan’s broader transition toward affordable renewable energy.
In recent weeks, social media campaigns and public criticism intensified, accusing authorities of increasing costs for solar users at a time when electricity tariffs remain high. The government has since moved to reposition itself as “pro-solar and pro-consumer,” emphasizing energy affordability and climate commitments.
The latest decision is expected to reinvigorate rooftop solar installations across Pakistan, particularly among households and small commercial users seeking relief from rising grid electricity costs.