Key Points
- Power Division moves to restore the 2015 Framework to boost rooftop solar adoption
- Proposal seeks return to 2015 model with DISCO-led approvals
- Stakeholders warn current rules are slowing rooftop solar growth
- Move reflects policy tension over pace of renewable energy expansion
ISLAMABAD: Pakistan’s Power Division has formally urged the national regulator to remove application fees and licensing requirements for small-scale solar consumers, according to an official communication.
The latest policy review aims to accelerate rooftop solar adoption and ease regulatory bottlenecks.
In a request to the National Electric Power Regulatory Authority (NEPRA), the division called for the restoration of the 2015 regulatory framework
The framework, which earlier triggered a rooftop solar boom in Pakistan, exempts consumers installing solar systems of up to 25 kilowatts from licensing requirements and associated fees. The regulations allow distribution companies to handle the net metering applications directly.
Experts and consumers unanimously view the earlier system as a more streamlined and more supportive of residential solar uptake.
However, the National Electric Power Regulatory Authority shifted the approval authority and the application handling to its regulatory purview through the recent changes under the Prosumer Regulations.
The regulator has also introduced new application fees and centralised oversight, even for smaller installations.
The Power Division has argued that these changes risk slowing down the adoption of distributed solar energy at a time when Pakistan is seeking to reduce pressure on the national grid and diversify its energy mix.
The request specifically recommends eliminating fees and reverting small-system approvals to distribution companies.
The Private Power and Infrastructure Board has also raised concerns, calling for regulatory consistency for smaller systems to avoid procedural complexity that could discourage investment in rooftop solar.
During recent public hearings, industry stakeholders, including the Pakistan Solar Association and the energy firms, criticised the revised framework. The removal of DISCO-level processing has created delays and added bureaucratic friction to what was previously a relatively simple process.
Pakistan has seen rising interest in rooftop solar in recent years, driven by higher electricity costs and supply constraints. However, policymakers remain divided over how to balance rapid decentralised adoption with regulatory oversight and grid’s viability concerns.
The latest move signals renewed debate within the energy sector over how quickly Pakistan should transition toward distributed renewable systems, particularly at the household and small-commercial level.
