Govt moves to undo 'taxing sunlight' curbs

Power Division seeks end to solar licence, fees

ISLAMABAD:

The Power Division has moved to unwind new curbs on small solar users, asking the National Electric Power Regulatory Authority to scrap licensing and application fees for systems up to 25 kilowatts.

In a statement issued on Sunday, the ministry said it had formally sought a review on the direction of Power Minister Awais Leghari to abolish both the licence requirement and application fee for solar prosumers within the 25kW threshold.

The Power Division said it had earlier flagged the adverse impact of the new rules and urged Nepra to align them with the previous framework.

Announcing the move on X, Leghari said, "Our government is pro-solar, pro-consumer, and committed to clean energy. We want to remove unnecessary barriers, reduce costs, and provide as much relief as possible to the people of Pakistan."

Under the 2015 regulations, distributed generation facilities of 25kW or below did not require a licence from Nepra, with applications processed by power distribution companies (Discos) without any fee.

However, the newer Prosumer Regulations shifted approvals to Nepra and introduced application fees even for small systems, drawing criticism from consumers and industry alike.

The Power Division said the Private Power and Infrastructure Board had also warned against the regulatory shift, recommending continuity with the earlier approvals regime.

Industry players, including the Pakistan Solar Association, Primage (Pvt) Ltd, the Pakistan Alternative Energy Association, and Siddiq Renewable Energy (Pvt) Ltd, had objected during public hearings, arguing that centralising approvals would add red tape and slow adoption.

With the latest directive, the Power Division has pressed Nepra to restore the earlier system, cautioning that the current approach risks throttling the country's shift towards alternative energy.