The National Electric Power Regulatory Authority (Nepra) on Tuesday scrapped fees and restored a licensing exemption for solar consumers with systems under 25 kilowatts (kW).

According to a notification issued today, under the revised framework, no fee or licence will be required for solar consumers with systems below 25kW.

However, users installing systems above this threshold will be subject to a one-time fee of Rs1,000 per kW. The notification stated that the decision would apply retrospectively from February 9 of this year.

The move comes after the Power Division formally approached Nepra on Sunday, seeking a review of its regulations and calling for the removal of fees and licensing requirements for small-scale solar consumers. The request followed a directive from Energy Minister Awais Leghari.

Read: Power Division urges Nepra to scrap fee for solar users below 25kW

The Power Division noted that it had earlier flagged the adverse impact of the new rules and urged the regulator to align them with the previous framework.

Leghari said the government was “pro-solar, pro-consumer, and committed to clean energy,” adding that efforts were underway to remove unnecessary barriers, reduce costs, and provide maximum relief to the public.

Under the 2015 regulations, solar 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, offering a significant financial incentive for domestic consumers.

However, the subsequent “prosumer regulations” centralised approval authority with Nepra, even for small-scale installations, and introduced application fees.

The proposed regulations drew criticism from consumers and industry stakeholders, with the Private Power and Infrastructure Board also warning against the regulatory shift.