NEPRA scraps solar license conditions for upto 25kW consumers

ISLAMABAD:The National Electric Power Regulatory Authority (NEPRA) formally abolished the licensing requirement for residential and small-scale solar users operating systems of 25 kilowatts (kW) or less.

The landmark decision, which came via an official NEPRA notification, is expected to dramatically accelerate solar adoption across Pakistan — particularly among middle-income households and small businesses that had long been deterred by bureaucratic hurdles.

The move was triggered by a direct intervention from Federal Minister for Power, Awais Leghari, who issued special instructions to the Power Division to pursue regulatory relief for smaller solar consumers. Acting swiftly on the minister's directive, the Power Division formally approached National Electric Power Regulatory Authority (NEPRA) and sought removal of the application fee and licensing requirement for solar consumers installing systems of 25 kilowatts and below.

The move came 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.

A spokesperson for the Power Division confirmed the sequence of events, stating that the ministry had proactively approached NEPRA with the request — underscoring the government's commitment to removing red tape from Pakistan's clean energy transition.

NEPRA responded promptly, issuing an official notification that formalized the regulatory change.

Previously, even small-scale solar users were entangled in NEPRA's licensing process — a requirement originally designed for large commercial and industrial power producers. For ordinary homeowners and small business owners, navigating this process was not only time-consuming but also financially discouraging.

With the licensing barrier now removed for systems up to 25 kW, millions of Pakistanis can install rooftop solar panels with far fewer regulatory complications. This threshold covers the vast majority of domestic solar installations across the country.

The notification has been officially issued by NEPRA following correspondence from the Power Division.