
NEPRA has ended free solar installation approvals, introducing a Rs1,000/kW fee and mandatory licensing for all system sizes.
National Electric Power Regulatory Authority (NEPRA) has introduced a major policy shift by ending free approvals for solar installations and making licensing mandatory for all system sizes.
Under the revised framework, all new consumers and prosumers must obtain formal concurrence from NEPRA, regardless of system capacity. Applicants are now required to pay a processing fee of Rs1,000 per kilowatt (kW), increasing the overall cost of installing solar systems.
Previously, only systems above 25kW required NEPRA approval, while smaller installations needed permission from distribution companies. The updated rules remove this distinction, bringing all solar users under a unified regulatory regime.
The move follows amendments to the NEPRA Act and changes to distributed generation regulations. Authorities say the new system ensures uniform oversight across the sector.
The policy shift also comes alongside changes to net metering, with buyback rates for excess solar electricity reduced significantly, impacting returns for consumers. Under the new structure, lower export rates and higher grid tariffs are expected to shift focus toward self-consumption rather than selling electricity back to the grid.
