Power Division urges NEPRA to restore fee waiver for small solar consumers

The Power Division has formally requested the National Electric Power Regulatory Authority (NEPRA) to waive licensing requirements and associated fees for net-metered solar consumers installing systems of up to 25 kilowatts (kW), citing concerns that recent regulatory changes could discourage the adoption of small-scale renewable energy systems.

According to official correspondence, the Power Division highlighted that under the 2015 net-metering regulations, solar systems with capacities up to 25 kW were exempt from NEPRA licensing requirements. At the time, such applications were handled directly by distribution companies without any processing fee, allowing consumers to adopt solar energy more easily and with minimal administrative hurdles.

However, the Division noted that revised regulations have now brought these smaller installations under NEPRA’s approval framework, introducing both licensing oversight and new application fees. Officials argue that this shift has added procedural complexity and financial burden for residential and small commercial solar users.

In its letter to NEPRA, the Power Division warned that the current system could slow down the growth of renewable energy in the country. It emphasized that the simplified earlier process had been instrumental in encouraging wider adoption of rooftop solar solutions, particularly among middle-income households.

The Private Power and Infrastructure Board (PPIB) has also reportedly raised concerns over the regulatory changes, calling for a return to the previous streamlined mechanism. It stressed that excessive procedural requirements could undermine national goals for expanding clean and affordable energy sources.

The Power Division further stated that maintaining a complex approval process for small solar systems may act as a barrier to investment in renewable energy at the grassroots level. It has urged NEPRA to reconsider the revised framework and reinstate the earlier exemption system to support continued growth in the sector.

NEPRA has yet to issue an official response regarding the request.