Islamabad: The federal government has recommended easing the regulatory framework for small solar consumers and has formally requested the National Electric Power Regulatory Authority (NEPRA) to review existing requirements related to licensing and fees for solar systems with a capacity of 25 kilowatts or less.
According to details, on the directions of Federal Minister for Energy Sardar Awais Ahmed Khan Leghari, the Power Division has sent an official letter to NEPRA, urging the authority to withdraw the newly imposed fees and approval procedures for small solar systems and to restore the 2015 regulatory framework.
The Power Division stated that under the previous regulations, solar systems of up to 25 kW did not require a license from NEPRA.
Their approvals and processing were handled directly by distribution companies without any additional fees. This system was considered simple and financially beneficial for domestic and small-scale consumers.
However, under the new “Prosumers Regulations,” not only has the approval authority for small solar systems been centralized with NEPRA, but application fees have also been imposed, prompting objections from various stakeholders.
The Power Division further noted that the Private Power and Infrastructure Board (PPIB) has also expressed concerns over the change and recommended maintaining the previous, simpler approval mechanism for small solar systems.
Additionally, during public hearings, several organizations—including the Pakistan Solar Association, Premige (Private) Limited, Pakistan Alternative Energy Association, and Siddique Renewable Energy (Private) Limited—formally objected to the new regulations. They argued that transferring approval authority away from distribution companies is creating unnecessary bureaucratic hurdles for consumers.
The Power Division has warned NEPRA that the current regulatory framework could hinder efforts to promote renewable energy, particularly solar power, across the country, and has stressed the need for the immediate restoration of the previous system.
This move by the Ministry of Energy comes at a time when demand for solar energy is rising significantly due to increasing electricity prices in the country.
