Power division moves to scrap solar fees

ISLAMABAD: The power division has moved to reverse an increase in regulatory burden on small solar consumers, formally asking NEPRA to abolish license requirements and application fees for systems up to 25kW to restore earlier incentives.

Acting on the directive of Federal Minister for Power Sardar Awais Ahmed Khan Leghari, the Power Division has formally approached National Electric Power Regulatory Authority (NEPRA), seeking removal of the application fee and licensing requirement for solar consumers installing systems of 25 kilowatts and below.

The move comes after the Power Division had earlier warned NEPRA about the adverse implications of the revised Prosumer Regulations, urging alignment with the earlier framework that facilitated rapid solar adoption across the country.

Under the 2015 regulatory regime, distributed generation facilities up to 25kW were exempt from licensing requirements. Applications were processed directly by distribution companies (DISCOs) without any fee, making small-scale solar installations financially viable and accessible for residential consumers.

However, the new Prosumer Regulations introduced a significant shift by centralizing approval authority with NEPRA and mandating application fees even for small-scale systems. The imposition of license requirements and associated fees by NEPRA has been widely viewed as an additional financial and procedural burden on consumers, potentially discouraging investment in rooftop solar and slowing down distributed generation growth.

The Power Division highlighted that the Private Power and Infrastructure Board (PPIB) had also flagged concerns over the regulatory change, recommending that NEPRA maintain consistency with the earlier approval regime for systems up to 25kW.

During public hearings, stakeholders including the Pakistan Solar Association, Primage (Pvt) Ltd, the Pakistan Alternative Energy Association, and Siddiq Renewable Energy (Pvt) Ltd strongly opposed the revised framework. They argued that shifting approval authority away from DISCOs has created unnecessary bureaucratic layers, increasing processing time and costs for consumers.

Following the minister’s directive, the Power Division has now formally urged NEPRA to reinstate the earlier practice, emphasizing that continuation of the current regime risks undermining the country’s broader push toward renewable energy and distributed solar adoption.