ISLAMABAD:
In a major relief for solar energy consumers, the government on Tuesday abolished the licensing requirement for users installing solar systems of 25 kilowatts (kW) or less under the net metering scheme.
Following the special instructions of the Federal Minister of Energy, Awais Leghari, the Energy Division formally approached the National Electric Power Regulatory Authority (Nepra) requesting removal of license condition for small scale solar energy users.
Nepra has approved the application, paving the way for a simplified regulatory framework for domestic and small commercial solar installations. Consumers with solar systems of 25 kW or less will not have to pay a one-time fee of Rs 1,000/kW to the regulator.
According to officials, the decision will significantly ease the procedural burden for new and existing solar energy users. The existing notification will come into effect from February 9, 2026.
Previously, reports of mandatory licenses for all solar energy users had caused confusion, leading the Energy Division to call 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 recently introduced by the federal government.
It clarified that off-grid solar users did not require approval for installation, but on-grid consumers were subject to regulatory procedures under net metering rules.
Officials stated that the flat rate of Rs 1,000/kW applied to grid-connected solar connections and stressed that no new tax has been imposed on solar systems.
