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Electricity Division urges Nepra to scrap fee for solar users below 25kW

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The Electricity Division on Sunday formally asked Nepra to evaluate its regulations, seeking the removal of fees and a licensing exemption for solar

Electricity Division urges Nepra to scrap fee for solar users below 25kW
An illustrative image related to: Electricity Division urges Nepra to scrap fee for solar users below 25kW, highlighting key aspects of the story. | Image source: The Express Tribune

Electricity Division urges Nepra to scrap fee for solar users below 25kW

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

The Electricity Division stated in a comment that it had earlier informed Nepra about the adverse impact of the ruling and had requested a return to the previous regulatory directive structure.

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 endorsement body with Nepra, even for small-scale plants and introduced application fees.

The Electricity Division observed that the Private Electricity and General facilities Board (PPIB) had also expressed concerns over the change and urged Nepra to retain the earlier endorsement mechanism for systems up to 25kW.

During citizen evaluate meetings, the Pakistan Solar Association, Premier (Private) Limited, Pakistan Alternative Energy Association, and Siddiq Renewable Energy (Private) Limited also formally objected to the changes. They contended that shifting endorsement body away from distribution companies would create unnecessary bureaucratic hurdles for consumers.

Acting on the secretary’s directives, the Electricity 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.

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