The Power Division on Sunday formally asked Nepra to review its regulations, seeking the removal of fees and a licensing exemption for solar consumers with systems under 25 kilowatts (kW), following a directive from Energy Minister Awais Leghari.

The Power Division said in a statement that it had earlier informed Nepra about the adverse impact of the decision and had requested a return to the previous regulatory framework.

Under the 2015 regulations, systems with a capacity of 25kW or less did not require a Nepra licence. Applications in this category were processed directly by distribution companies without any fee, providing a significant financial incentive for domestic consumers. However, the new “prosumer regulations” have centralised approval authority with Nepra, even for small-scale plants and introduced application fees.

The Power Division noted that the Private Power and Infrastructure Board (PPIB) had also expressed concerns over the change and urged Nepra to retain the earlier approval mechanism for systems up to 25kW.

During public hearings, the Pakistan Solar Association, Premier (Private) Limited, Pakistan Alternative Energy Association, and Siddiq Renewable Energy (Private) Limited also formally objected to the changes. They argued that shifting approval authority away from distribution companies would create unnecessary bureaucratic hurdles for consumers.

Read More: Solar net metering not taxed: NEPRA

Acting on the minister’s directives, the Power Division formally requested Nepra to restore the previous mechanism for systems up to 25kW, warning that the current procedure could hinder efforts to promote renewable energy at the national level.

In a statement issued on Friday, Nepra sought to clear the air regarding solar licensing after reports confused consumers. It said that all solar net billing consumers are required to obtain approval from Nepra.

Prior to new regulations, it said, the regulator granted approvals for connections above 25kW, while distribution companies (DISCOs) held approval authority for connections below 25kW.

It emphasised that no new tax has been imposed on solar systems, adding that misinformation about solar licensing has spread, leading to user concerns.

On April 22, the Power Division declared misleading the reports claiming that the federal government had made it mandatory for solar consumers to get a licence from Nepra.

The reports stated that amendments related to solar systems made it obligatory for all consumers installing solar setups to obtain a licence from the power regulator. The reports suggested the federal government imposed this requirement for all users opting for net metering.

On Wednesday, a Power Division spokesperson rejected these claims and clarified that regulations for obtaining licences related to solar net metering already exist and fall strictly under Nepra’s jurisdiction as the regulator.