NEPRA clarifies rules for 1–25kW solar system users

ISLAMABAD: The National Electric Power Regulatory Authority (NEPRA) has issued a clarification regarding tax and registration for consumers with one to 25 kW solar systems.

Nepra had announced the abolition of license fees for solar consumers of one to 25 kW on the instructions of the government last month; now, Nepra has issued a new clarification in this regard.

The National Electric Power Regulatory Authority (Nepra) has decided to maintain the mandatory licensing requirement for solar consumers under the net metering system while maintaining strict regulatory oversight on small-scale solar installations across Pakistan.

The clarification issued by Nepra states that Pakistani small solar consumers still need a license for net metering despite the abolition of fees. Households and businesses installing solar systems between one and 25 kW will have to obtain a Nepra generation license.

The authorities clarified that the license fee for systems up to 25 kW has been waived, but the authority to issue licenses lies solely with NEPRA, with regulatory approval being made mandatory before any grid connection can be activated.

All applicants for licenses will now have to go through a dedicated online portal, which sends applications directly to NEPRA for licensing review and approval.

It has also been clarified that no net metering application can be processed without a valid license from NEPRA, reinforcing the regulator’s central role in controlling access to the system.

The Power Division had pushed for complete exemption from licensing requirements for systems up to 25 kW to simplify the procedure and promote solar energy adoption. However, NEPRA agreed to only waive the fee, while maintaining both the license requirement and the online system.

The sources added that a final decision is expected within this month, which will determine whether the licensing requirement for small-scale solar users is permanently removed or will continue.