In a major win for renewable energy advocates, the Power Division has moved to dismantle recently imposed hurdles for small-scale solar installations. On Sunday, the ministry formally requested the National Electric Power Regulatory Authority (NEPRA) to abolish licensing requirements and application fees for solar systems up to 25 kilowatts (kW).
The directive, issued by Power Minister Awais Leghari, aims to restore the simplified procedures that existed prior to recent regulatory shifts, which many critics had dubbed a "tax on sunlight."
Restoring the 2015 Framework
The government’s move seeks to revert to the 2015 regulatory standard, which allowed small-scale "prosumers" (consumers who also produce energy) to operate without the burden of federal licensing. Under that previous system:
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Systems of 25kW or less required no NEPRA license.
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Applications were handled directly by local power distribution companies (Discos).
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Zero application fees were charged to small-scale users.
The newer "Prosumer Regulations" had centralized approvals through NEPRA and introduced new costs, sparking widespread backlash from the public and the solar industry.
Pro-Solar and Pro-Consumer
Minister Leghari, announcing the decision via social media, emphasized the government's commitment to clean energy and public relief. "We want to remove unnecessary barriers and reduce costs for the people of Pakistan," he stated, adding that the administration is firmly "pro-solar."
The Power Division noted that it had previously warned NEPRA about the negative impacts of the new rules. The Private Power and Infrastructure Board (PPIB) also echoed these concerns, recommending that the government stick to the earlier, more accessible approval regime.
Industry Pushback and Future Outlook
The shift toward centralization had faced stiff opposition during public hearings. Key stakeholders, including the Pakistan Solar Association and various renewable energy firms, argued that adding bureaucratic "red tape" would stifle the adoption of green technology.
By pushing for the restoration of the original rules, the Power Division aims to prevent a slowdown in the country's transition to alternative energy. This move is expected to reignite interest in domestic solar adoption, providing financial relief to households and small businesses looking to offset rising electricity costs.
