Pakistani Solar Users still need License for Net Metering despite end of fee, NEPRA clarifies

ISLAMABAD – National Electric Power Regulatory Authority (NEPRA) decided to retain mandatory licensing requirement for solar consumers under the net metering system, maintaining strict regulatory oversight over small-scale solar installations across Pakistan. Households and businesses installing solar systems between 1 kilowatt and 25 kilowatts will still be required to obtain NEPRA generation license, despite growing expectations of a complete exemption for small users. Authorities clarified that while the license fee for systems up to 25 kW has been waived, the authority to issue licenses remains exclusively with NEPRA, making regulatory approval compulsory before any grid connection can be activated. Sources further revealed that all applicants must now go through a dedicated online portal, which directly forwards applications to NEPRA for licensing review and approval. It has also been made clear that no net metering application can be processed without a valid NEPRA license, reinforcing the regulator’s central role in controlling access to the system. Applications already submitted by users are currently under review and being processed for approval. Power Division had pushed for a full exemption from licensing requirements for systems up to 25 kW in order to simplify procedures and promote solar adoption. However, NEPRA only agreed to remove the fee while keeping both the licensing requirement and the online system intact. Sources added that a final decision is expected within the current month, which will determine whether the licensing requirement for small-scale solar users is permanently abolished or continues, a ruling that could significantly reshape Pakistan’s rapidly growing solar net metering market. End of Solar License Fee Pakistan’s solar sector has seen major policy shifts in recent years. At one stage, NEPRA introduced “prosumer regulations” requiring both a generation license and a Rs 1,000 per kW one-time fee for all solar installations, includ