Solar relief

The recent back-and-forth over solar regulations has worked to confuse even the most engaged consumers. Nepra's latest decision to abolish the licensing requirement and fee for solar systems of up to 25 kilowatts under net metering is therefore a welcome correction. It removes an unnecessary hurdle and restores a degree of sanity to a sector that has increasingly become central to household survival.

For months, the impression took hold that the state was intent on "taxing sunlight". Whether that perception was entirely accurate is beside the point. Policy signals matter, and the earlier move to impose a Rs1,000 per kW licensing fee while centralising approvals with Nepra sent precisely the wrong message. At a time when fuel costs and unreliable grid supply are pushing citizens toward self-generation, such measures appeared punitive. The reversal, prompted by public pressure and industry pushback, effectively restores the spirit of the 2015 distributed generation framework. Small consumers can once again install rooftop solar systems without navigating an additional regulatory maze or incurring upfront fees. That matters not just for affordability but for momentum. Pakistan's solar uptake has been one of the few bright spots in an otherwise strained energy landscape. However, it cannot be ignored that when it comes to solar, policy inconsistency has become the norm. The same authorities that flirted with shifting net metering to net billing are now positioning themselves as pro-solar.

Clarity is now essential. First, the government must commit to a stable net metering regime with clearly defined timelines and protections for existing and future consumers. Second, distribution companies need streamlined processes that do not shift arbitrarily between decentralised and centralised approvals. Pakistan does not have the luxury of policy whiplash in its energy transition. Demand is rising and capacity payments are choking public finances.