Govt relaxes rules for 25kW solar users

ISLAMABAD: In an important development for the solar consumer community, the government has made it known that the licensing process would no longer be mandatory for customers opting for the installation of solar power systems of up to 25 kilowatts (kW).

As per the specific directions provided by the Federal Minister for Power Awais Leghari, the Power Division officially communicated its request to Nepra for the exemption of the license requirement for small solar users.

The Nepra authority has officially granted the request, opening up an opportunity for a streamlined regulatory system for households and small businesses utilizing solar power. Users with solar power systems of 25 kW or less will no longer need to pay an initial one-time payment of Rs1,000/kW to the regulator.

Sources said that this latest move would greatly reduce the administrative hassle faced by both new and old solar users. The current notification would take effect from February 9, 2026.

Earlier, reports regarding mandatory licensing for all solar users had sparked confusion, prompting the Power Division to term such claims misleading.

Last week, the ministry reiterated that licensing rules already existed under Nepra's regulatory domain and were being implemented through distribution companies, not newly introduced by the federal government.

It clarified that off-grid solar users did not require its approval for installation, but on-grid consumers were subject to regulatory procedures under net metering rules.

Officials stated that the one-time fee of Rs1,000/kW was applicable for on-grid solar connections and stressed that no new tax has been imposed on solar systems.