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–Govt moves to scrap fees, licensing for 25kW systems
Aftab Maken
ISLAMABAD: The Power Division has formally requested a policy reversal to ease restrictions on small-scale solar users, following directions from Sardar Awais Ahmed Khan Leghari.
In a communication to National Electric Power Regulatory Authority, the division urged the removal of application fees and licensing requirements for solar systems with a capacity of 25 kilowatts or less. The move aims to restore earlier incentives for residential and small commercial consumers.
The development comes amid concerns that new “prosumer regulations” have created barriers for low-capacity solar installations. Under the revised framework, even small systems now require approvals directly from NEPRA along with application fees, replacing the previous decentralized mechanism.
Officials said the earlier 2015 regulations allowed systems up to 25kW to be processed directly through distribution companies without licensing or additional charges. This framework had significantly encouraged household adoption of solar energy by reducing costs and procedural hurdles.
The Power Division noted that it had previously highlighted the adverse impact of the new rules to the regulator and recommended a return to the earlier system. The latest request reinforces those concerns, warning that the current regime could slow down the country’s transition toward renewable energy.
Industry stakeholders have also raised objections. The Private Power and Infrastructure Board expressed reservations over the changes and supported reverting to the earlier approval process for small systems. During public hearings, several industry players including the Pakistan Solar Association and renewable energy firms opposed the centralized approval model.
They argued that shifting authority away from distribution companies has introduced unnecessary bureaucratic hurdles, increasing both processing time and costs for consumers. According to stakeholders, this could discourage households from investing in rooftop solar solutions at a time when energy prices remain high.
Pakistan has seen a growing shift toward solar energy in recent years, driven by rising electricity tariffs and frequent power shortages. According to alternative energy reports, rooftop solar installations have surged, particularly in urban centers, as consumers seek cost-effective and reliable power sources.
Experts say small-scale solar systems play a crucial role in reducing pressure on the national grid and lowering overall energy demand. Simplifying the approval process and reducing upfront costs are considered key to sustaining this momentum.
The Power Division has cautioned that maintaining the current regulatory approach could undermine national renewable energy targets. Pakistan aims to increase the share of clean energy in its power mix in line with climate commitments and energy security goals.
Officials emphasized that restoring the previous framework would not only facilitate consumer adoption but also support broader policy objectives, including reduced reliance on imported fuels and lower carbon emissions.
The National Electric Power Regulatory Authority is now expected to review the request, with stakeholders closely watching for a decision that could shape the future of small-scale solar adoption in Pakistan.
