ISLAMABAD: The National Electric Power Regulatory Authority (Nepra) announced on Tuesday that it has eliminated the requirement for a license and the Rs1,000 per kW licensing fee for solar net-metering systems with capacities below 25 kilowatts.
This decision follows recent public backlash over what was dubbed as a “sunlight tax,” prompting the Power Division to instruct Nepra to rescind the licensing mandates. Responding to the directive, Nepra issued a notification amending the prosumer regulations, stating that there will be no licensing fee for systems up to 25kW. However, prosumers with larger capacities will need to pay a one-time fee of Rs1,000 per kilowatt.
The notification, effective from February 9, 2026, clarified that the new rules would apply from that date onward.Earlier in the day, Nepra member Amina Ahmed indicated that the regulator was reviewing the government’s proposal but refrained from holding press conferences or leaking policy details during public hearings. Within hours, Nepra confirmed the new regulation in line with the Power Division’s instructions.
The Power Division, in a statement released on Sunday, had officially requested Nepra to abolish the licensing requirement, citing the directives of Power Minister Awais Leghari. The ministry had previously warned Nepra about the negative impact of enforcing licensing fees and urged the regulator to adhere to earlier regulations that did not require licensing for systems of 25kW or less.
Leghari emphasized the government’s pro-solar stance, tweeting that “Our government supports solar energy, prioritizes consumers, and is dedicated to promoting clean energy. Removing unnecessary barriers and reducing costs are key to helping the people of Pakistan.”
Under the 2015 regulations, small distributed generation systems of 25kW or less did not need a license, with approvals handled directly by power distribution companies without any fees—an incentive that encouraged residential solar adoption. However, the new Prosumer Regulations centralized approval authority with Nepra and introduced application fees, even for small-scale systems.
The Power Division noted that the Private Power and Infrastructure Board (PPIB) had raised concerns about this regulatory shift, urging Nepra to maintain consistency with previous policies for systems of 25kW or below. During public hearings, industry associations including the Pakistan Solar Association, Primage (Pvt) Ltd, the Pakistan Alternative Energy Association, and Siddiq Renewable Energy (Pvt) Ltd strongly opposed the changes, arguing that transferring approval authority from Discos would create unnecessary bureaucratic delays.
The division also cautioned that these new regulations could hinder the country’s push toward renewable energy. Over recent years, Nepra has often acted as a conduit for government directives, especially those from the Power Division. The government initially attempted to limit the benefits of net metering by shifting to net-billing and later withdrew many benefits for existing prosumers with valid licenses.
Following public criticism, Nepra reinstated the net-metering scheme for existing prosumers and introduced new applications for net-billing, but maintained the Rs1,000 per kW license fee earlier this year. This move sparked social media campaigns accusing the government and Power Minister Leghari of overcharging the public for a natural resource, thereby discouraging solar energy adoption.
The Power Division distanced itself from the license fee controversy, claiming it was outside its authority and solely Nepra’s responsibility.
