The Power Division of the Government of Pakistan has proposed eliminating application fees for small-scale distributed generation facilities of 25 kilowatts (kW) and below, aiming to ease the process for residential and small commercial solar users.
According to an official memorandum issued on April 26, the move comes in response to recent changes introduced under the National Electric Power Regulatory Authority (NEPRA) Prosumer Regulations 2026, which replaced the earlier 2015 net metering framework.
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The Power Division noted that under the previous system, applications for systems up to 25 kW were handled directly by distribution companies (DISCOs) without requiring a license from NEPRA, and no application fee was charged. This approach served as a financial incentive for households and small businesses to adopt renewable energy.
However, the new regulations have centralized approvals at NEPRA and introduced application fees for all system sizes, including those below 25 kW.
The memorandum states that stakeholders, including the Private Power and Infrastructure Board (PPIB), Pakistan Solar Association, and several renewable energy companies, raised concerns during consultations, arguing that the new framework creates unnecessary bureaucratic hurdles for small consumers.
The Power Division warned that imposing fees and shifting approvals away from DISCOs could discourage the adoption of renewable energy by increasing costs and delays. It also cautioned that centralizing approvals at the regulatory level may lead to administrative bottlenecks.
In light of these concerns, the Power Division has requested NEPRA to reinstate the earlier system for small-scale installations, including restoring the role of DISCOs in approvals and removing application fees for systems up to 25 kW.
Officials said the proposed changes are intended to support the growth of renewable energy in the domestic sector and maintain ease of doing business for small-scale solar users.
