Planning to install solar but worried about taxes and licensing? There’s good news. In a move aimed at boosting renewable energy adoption, National Electric Power Regulatory Authority (NEPRA) announced new rules apply to residential and small commercial users across Pakistan.
In a major relief for renewable energy users, NEPRA has removed licensing requirements and fees for small solar systems, making installations easier and more affordable.
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The decision applies to residential and small commercial users installing solar systems of up to 25 kilowatts, eliminating the Rs. 1,000 per kilowatt one-time fee previously charged.
وفاقی وزیر پاور سسردار اویس احمد خان لغاری کی خصوصی ہدایت پر پاور ڈویژن کی درخواست پر نیپرا نے 25کلوواٹ اور اس سے کم سولر صارفین کیلئے لائسنس کی شرط ختم کردی ۔شکریہ نیپرا pic.twitter.com/6o4TXpZxSf
— MOE- Power Division, Government of Pakistan (@MoWP15) April 28, 2026
According to officials, the move follows directives from the Power Division after concerns were raised that new regulations were discouraging rooftop solar adoption across the country.
Federal Minister for Power Sardar Owais Ahmed Khan Leghari had instructed authorities to simplify the process, leading to a formal request to NEPRA to withdraw licensing conditions for smaller systems.
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Under the updated policy, consumers can now install solar systems without seeking approval from NEPRA, significantly reducing delays and bureaucratic hurdles in the process.
The change effectively restores the earlier framework under the Distributed Generation and Net Metering Regulations 2015, where systems up to 25kW were exempt from licensing and applications were processed directly by electricity distribution companies (DISCOs) without any fee.
Previously, newer “Prosumer Regulations” had shifted approval authority to NEPRA and introduced application fees even for small systems, triggering criticism from industry stakeholders and energy experts.
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Organizations such as the Pakistan Solar Association (PSA) had warned that increased regulation could slow down solar adoption, especially at a time when consumers are turning to alternative energy due to rising electricity costs.
Pakistan has seen growing demand for solar solutions in recent years amid frequent power shortages and increasing tariffs, making rooftop solar a popular choice among consumers.
With the latest notification about the removal of licensing barriers, authorities expect faster growth in the renewable energy sector, supporting both energy sustainability and consumer affordability.
