NEPRA has officially scrapped the license requirement for solar net metering consumers with a capacity of 25kW or below.
The regulator has also abolished the Rs1,000 per kilowatt fee that was previously imposed on small users. This means that consumers installing smaller solar systems will no longer face additional regulatory costs.
According to the notification, this change will be effective from February 9, 2026.
The decision comes just two days after the Power Division Pakistan stepped in following widespread criticism on social media.
On the instructions of Energy Minister Awais Leghari, the Power Division formally wrote to NEPRA, requesting the removal of the license and fee for small solar users.
Shortly after receiving the letter, NEPRA issued the notification, amending rules for electricity consumers who both generate and consume power—commonly referred to as prosumers.
What changes under new notification
Under the revised rules, no license fee will be charged for distributed generation systems up to 25kW.
However, consumers installing systems above this threshold will still be required to pay a lump sum fee of Rs1,000 per kilowatt.
The notification effectively restores relief for small-scale users while maintaining charges for larger installations.
Return to earlier policy framework
The latest decision aligns with the earlier 2015 regulations, under which solar systems of up to 25kW did not require a license.
Previously, applications were processed directly through distribution companies without any fee, making it easier and more affordable for domestic consumers to adopt solar energy.
However, under newer prosumer regulations, approval authority had shifted to NEPRA, and fees were introduced even for small users—triggering widespread concern.
Policy reversal after criticism
In recent months, NEPRA and the government had faced criticism over changes to net metering policies.
Attempts to shift from net metering to net billing and reduce consumer benefits had already sparked backlash. Earlier this year, NEPRA introduced a license fee for new solar applicants, which further intensified public criticism.
A strong social media campaign labeled the move as a “tax on sunshine,” pushing authorities to reconsider the decision.
Energy Minister Owais Leghari stated that the government is committed to promoting solar energy and supporting consumers.
He emphasized the need to remove unnecessary barriers, reduce costs, and provide maximum relief to the public.
Officials say the latest move reflects the government’s intent to encourage clean energy adoption across the country.
