The move seeks to reverse aspects of the Nepra Prosumers Regulations 2026, which centralized approvals and is creating delays and financial barriers for rooftop solar adoption.
Pakistan‘s Power Minister Sardar Awais Legharihas has formally requested the National Electric Power Regulatory Authority (Nepra) to exempt homowners and small businesses that want to install a PV system not exceeding 25 in size from requesting and paying a licensing fee.
“On the instructions of Energy Minister Sardar Awais Ahmad Khan Leghari, the Energy Division has formally requested Nepra to review the removal of tariffs for solar users with systems up to 25 kW, as well as the exemption from licensing requirements,” Leghari said in a post on X.
Through this decision, the government is seeking to amend provisions embedded in the recently introduced Prosumers Regulations 2026, which centralised the licensing process for such systems under Nepra.
“Centralizing the approval of small-scale installations at the Authority level may lead to administrative saturation, whereas the earlier decentralized model provided a more agile route for the general public and ensured ease of doing business,” the government said.
Under the previous regulatory regime, small distributed generation systems of up to 25 kW operated without a Nepra licence, with applications processed directly by the country’s distribution companies (DISCOs) and no associated fees. This decentralized approach enabled streamlined approvals for residential and small commercial solar users.
“The Power Division is concerned that the imposition of this fee on small prosumers, coupled with the shift in processing jurisdiction away from the DISCO level, may create procedural bottlenecks and financial deterrents,” the government said. “Such a move risks slowing the momentum of the national drive toward alternative and renewable energy adoption.”
The country installed 1.2 GW of net-metering capacity across the first six months of 2025, according to figures from the Islamabad-based think tank Renewables First.
Cumulative net-metering capacity increased from 4.9 GW at the end of last year to 6.1 GW by the end of June 2025. The growth rate is slower than that recorded during the second half of 2024, when 2.5 GW of net-metering capacity was added.
Rabia Babar, manager data for energy and climate at Renewables First, recently told pv magazine that while H1 2025 saw a surge in net-metering applications, the pace of issuance slowed. “As of June, over 4,000 new net metering connections were pending with various utilities, with regulatory bottlenecks contributing to a growing backlog,” Babar explained.
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