Govt scraps solar licensing rules for small consumers

April 29, 2026 (MLN): The National Electric Power Regulatory Authority (NEPRA) has eliminated the licensing requirement for residential and small-scale solar users with systems of 25 kilowatts or less.

This development will offer significant relief to the country's rapidly growing rooftop solar sector.

The decision follows a formal request from the Power Division, acting on directives from Energy Minister Sardar Awais Ahmad Khan Leghari, who described the move as a step toward removing unnecessary administrative burdens from ordinary consumers.

Under the newly revised framework, solar users operating systems at or below the 25kW threshold will no longer need to obtain a license from NEPRA or pay any associated fees.

Those with larger distributed generation setups, above 25kW, will be subject to a one-time charge of Rs1,000 (approximately $3.59) per kilowatt.

The change effectively reverses a contentious policy introduced under the NEPRA (Prosumers) Regulations 2026, which had centralized the approval process under the regulator and imposed licensing fees even on small installations.

Prior to those regulations, systems of 25kW and below were handled directly by power distribution companies (DISCOs) without any fee or NEPRA involvement.

Industry groups, including the Pakistan Solar Association, had strongly opposed the 2026 rules, arguing they created needless red tape by stripping DISCOs of their approval authority.

The rollback comes at a pivotal moment for Pakistan's energy landscape. Battered by soaring grid tariffs and persistent power outages, Pakistani consumers have turned to rooftop solar in record numbers.

Solar's share of the national energy mix climbed from around 4% in 2021 to between 14% and 25% by 2024–25. In 2024 alone, the country imported roughly 22 gigawatts worth of solar panels, cementing its status as one of the world's fastest-growing solar markets.

By removing upfront compliance costs for smaller users, policymakers are signaling a clear intent to accelerate consumer-led renewable adoption, easing pressure on the national grid while reducing dependence on imported fuels.

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