ISLAMABAD, April 26, 2026 — Pakistan’s Power Division has asked the National Electric Power Regulatory Authority to abolish application fees and remove licensing requirements for small-scale solar consumers, in a move aimed at accelerating renewable energy adoption.
The directive follows instructions from Federal Minister for Power Sardar Awais Ahmed Khan Leghari, according to an official statement issued on Sunday. The proposal targets solar systems with a capacity of up to 25 kilowatts, a segment largely comprising residential users and small businesses.
Officials said the Power Division had earlier raised concerns with NEPRA over the impact of new Prosumer Regulations, which introduced application fees and centralized approval authority with the regulator. Under the previous 2015 framework, small distributed generation facilities of 25 kW or below were exempt from licensing requirements and applications were processed directly by distribution companies without any fee.
The shift in regulatory approach drew criticism from industry stakeholders, including the Pakistan Solar Association and Pakistan Alternative Energy Association, who argued that additional requirements could discourage adoption and create bureaucratic delays.
The Private Power and Infrastructure Board had also flagged the issue, urging consistency with earlier policies that facilitated easier access to solar energy solutions for smaller consumers.
In its latest communication, the Power Division warned that maintaining the current framework could slow Pakistan’s transition toward alternative energy sources. It emphasized that restoring the earlier system would provide a stronger incentive for households and small enterprises to invest in solar installations.
Analysts say the proposed changes could support Pakistan’s broader renewable energy goals, particularly as the country seeks to reduce reliance on costly imported fuels and improve energy sustainability.