ISLAMABAD: Pakistan’s National Electric Power Regulatory Authority (Nepra) on Tuesday annulled the licensing requirement and the accompanying Rs1,000 per kilowatt fee for solar net-metering consumers using systems smaller than 25 kilowatts, retroactively effective from February 9, 2026.
The decision comes just 48 hours after the Power Division, responding to mounting public outrage over what critics called “taxing sunlight,” ordered Nepra to eliminate the charges.
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
What the new notification says
- No licence, no fee for solar users with systems up to 25kW
- Rs1,000 per kW one-time fee remains for higher capacity prosumers
- The amendment applies retroactively from February 9, 2026
NEPRA member Amina Ahmed had earlier stated that the regulator was reviewing the government’s proposal, adding that policy decisions could not be “leaked” through press conferences. However, within hours, Nepra issued a formal notification complying fully with the Power Division’s directive.
How we got here
On Sunday, the Power Division announced that it had “formally asked” Nepra to reverse the requirement on the instructions of Power Minister Awais Leghari. The division also noted that it had previously warned Nepra about the negative consequences of the licence fee and requested alignment with older, more consumer-friendly regulations.
Power Minister Awais Leghari posted on X: “Our government is pro-solar, pro-consumer, and committed to clean energy. We want to remove unnecessary barriers, reduce costs, and provide as much relief as possible to the people of Pakistan.”
The old vs. the new
Under the 2015 regulations, solar systems of 25kW or below required no Nepra licence. Applications went directly to power distribution companies (Discos) with zero fees, making solar adoption highly attractive for households.
However, the newer Prosumer Regulations shifted approval authority to Nepra and imposed application fees even on small users. This drew formal objections from the Pakistan Solar Association, Primage (Pvt) Ltd, the Pakistan Alternative Energy Association, and Siddiq Renewable Energy (Pvt) Ltd, who argued the move would create unnecessary red tape.
String of reversals
The government has been forced to backtrack multiple times on solar policy:
- Attempts to replace net-metering with less favourable net-billing were abandoned after public backlash
- In November last year, Nepra slashed benefits for existing prosumers
- In February this year, the Rs1,000 per kW licence fee was introduced
- Now, after fierce criticism and a social media campaign, the fee has been scrapped for small users
The Power Division had initially distanced itself from the licence fee, claiming it was exclusively Nepra’s domain. But public pressure eventually forced the government to intervene and roll back the charge.
