Power Division seeks NEPRA’s withdrawal of solar licence, charge for small consumers

The Power Division has asked the National Electric Power Regulatory Authority (NEPRA) to abolish the license requirement and costs for solar energy users with installations of up to 25 kilowatts.

In a statement issued on Sunday, the Power Division said that it has officially asked the NEPRA, under the instruction of Power Minister Awais Leghari, to examine its regulations and do away with the application fee and licensing requirement for small-scale solar clients.

The ministry said it had already discussed its concerns with NEPRA earlier and asked the agency to revert to the old structure. The 2015 laws exempted the solar plants up to 25kW from licensing and also accepted the applications directly from the distribution companies without any fee which encouraged the construction of the solar plants on homes.

However, the revised Prosumer Regulations vested the approval power with NEPRA and mandated licensing costs even for smaller systems which drew criticism from stakeholders and renewable energy activists.

The Power Division said the Private Power and Infrastructure Board (PPIB) had also opposed to the modification suggesting consistency with the old system. Likewise, in public hearings, various industry groups and solar associations highlighted worries that centralising approvals with NEPRA would create additional administrative burdens.

The Power Division has duly followed the minister’s directive and has made an official recommendation to reintroduce the previous method for 25kW or less which, it says, would not only ease the transition to renewable energy but also accelerate the process.

The issue has spawned a bigger debate in recent months about net metering laws and regulatory fees, with critics arguing officials are hindering solar growth by creating financial and bureaucratic obstacles.