ISLAMABAD: Acting on the direction of Federal Minister for Power Sardar Awais Ahmed Khan Leghari, the Power Division has formally asked NEPRA to abolish the application fee and remove the license requirement for solar consumers of 25 kilowatts and below.
The Power Division had previously alerted NEPRA about the adverse effects of this decision and requested that it be aligned with the old regulations.
Under the previous 2015 regulations, distributed generation facilities of 25 kilowatts or below did not require a license from NEPRA. Applications were processed directly by Distribution Companies (DISCOs) without any fee, serving as a major fiscal incentive for residential users. However, the new Prosumer Regulations centralize approval authority with NEPRA and impose application fees even on these small facilities.
The Power Division noted that the Private Power and Infrastructure Board (PPIB) had flagged the regulatory shift and requested NEPRA to maintain consistency with the earlier approvals regime for systems of 25 kW or below. Additionally, during public hearings, the Pakistan Solar Association, Primage (Pvt) Ltd, the Pakistan Alternative Energy Association, and Siddiq Renewable Energy (Pvt) Ltd formally objected to the changes, arguing that removing approval authority from DISCOs creates unnecessary bureaucratic hurdles. Following the Minister’s directive, the Power Division has now formally requested NEPRA to reinstate the earlier practice for systems of 25 kW and below, warning that the current approach risks slowing the national drive toward alternative energy adoption.
Copyright Business Recorder, 2026
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