Asks to review its regulations, seeking to eliminate the exemption of fees from licensing requirements
Solar panel. Photo: AGENCIA ANADOLU
ISLAMABAD:
On Sunday, the Energy Division formally asked Nepra to review its regulations, seeking the elimination of tariffs and a license exemption for solar consumers with systems less than 25 kilowatts (kW), following a directive from Energy Minister Awais Leghari.
The Energy Division said in a statement that it had earlier informed Nepra about the adverse impact of the decision and had requested to return to the previous regulatory framework.
According to the 2015 regulations, systems with a capacity of 25 kW or less did not require a Nepra license. Applications in this category were processed directly by distribution companies without any payment, which provided a significant financial incentive for domestic consumers. However, new “prosumer regulations” have centralized approval authority at Nepra, even for small-scale plants, and introduced application fees.
The Energy Division noted that the Private Infrastructure and Energy Board (PPIB) had also expressed concerns over the change and urged Nepra to maintain the previous approval mechanism for systems up to 25 kW.
During the public hearings, Pakistan Solar Association, Premier (Private) Limited, Pakistan Alternative Energy Association and Siddiq Renewable Energy (Private) Limited also formally opposed the changes. They argued that diverting approval authority from distribution companies would create unnecessary bureaucratic hurdles for consumers.
Read more: Untaxed Solar Net Metering: NEPRA
Following the minister’s directives, the Energy Division formally requested Nepra to reinstate the previous mechanism for systems up to 25 kW, warning that the current procedure could hamper efforts to promote renewable energy at the national level.
In a statement issued on Friday, Nepra attempted to set the record straight regarding solar licenses after reports confused consumers. He said all net solar billing consumers must get approval from Nepra.
Before the new regulations, he said, the regulator granted approvals for connections above 25 kW, while distribution companies (DISCOs) had approval authority for connections below 25 kW.
He emphasized that no new tax has been imposed on solar systems, adding that misinformation about solar licenses has been spread, raising concerns among users.
On April 22, the Energy Division declared misleading reports that the federal government had forced solar consumers to obtain a license from Nepra.
Reports indicated that the amendments related to solar systems made it mandatory for all consumers installing solar installations to obtain a license from the energy regulator. Reports suggested that the federal government imposed this requirement on all users opting for net metering.
On Wednesday, a spokesperson for the Energy Division rejected these claims and clarified that licensing regulations related to solar net metering already exist and fall strictly under the jurisdiction of Nepra as a regulator.
