The move follows the Energy Division’s request to review the rules after concerns about the impact on consumers.
The National Electric Power Regulatory Authority (Nepra) on Tuesday removed tariffs and reinstated a license exemption for solar energy consumers with systems less than 25 kilowatts (kW).
According to a notification issued today, under the revised framework, no tariff or license will be required for solar energy consumers with systems less than 25 kW.
However, users installing systems above this threshold will be subject to a one-time fee of Rs 1,000 per kW. The notification stated that the decision would be applied retrospectively from February 9 this year.
The move comes after the Energy Division formally approached Nepra on Sunday, requesting a review of its regulations and calling for the removal of fees and licensing requirements for small-scale solar consumers. The request followed a directive from Energy Minister Awais Leghari.
Read: Energy Division urges Nepra to eliminate tariff for solar energy users below 25 kW
The Energy Division noted that it had earlier flagged the adverse impact of the new rules and urged the regulator to align them with the previous framework.
Leghari said the government was “pro-solar, pro-consumer and committed to clean energy,” adding that efforts were being made to remove unnecessary barriers, reduce costs and provide maximum relief to the public.
According to the 2015 regulations, solar 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 offered a significant financial incentive to domestic consumers.
However, subsequent “prosumer regulations” centralized approval authority at Nepra, even for small-scale installations, and introduced application fees.
The proposed regulations drew criticism from consumers and industry stakeholders, with the Private Energy and Infrastructure Board also warning against the regulatory change.
