Solar net metering not taxed: NEPRA

The National Electric Power Regulatory Authority (Nepra) has clarified that off-grid users do not need Nepra approval to install a solar system but for on-grid solar connections, consumers pay a one-time fee of Rs1,000 per kilowatt (kW).

In a statement issued on Friday, Nepra sought to clear the air regarding solar licensing after reports caused confusion among consumers. It said that all solar net billing consumers are required to obtain approval from Nepra.

Prior to new regulations, it said, the regulator granted approvals for connections above 25kW, while distribution companies (DISCOs) held approval authority for connections below 25kW.

It emphasised that no new tax has been imposed on solar systems, adding that misinformation about solar licensing has spread, leading to user concerns.

On April 22, the Ministry of Power Division declared misleading the reports claiming the federal government made it mandatory for solar consumers to get a licence from Nepra.

The reports stated that amendments related to solar systems made it obligatory for all consumers installing solar setups to obtain a licence from the power regulator. The reports suggested the federal government imposed this requirement for all users opting for net metering.

On Wednesday, a Power Division spokesperson rejected these claims and clarified that regulations for obtaining licences related to solar net metering already exist and fall strictly under Nepra's jurisdiction as the regulator.