NEPRA responds to confusion over solar licensing

Power Division solar

The National Electric Power Regulatory Authority (NEPRA) has issued a clarification on solar licensing, saying misinformation is being circulated on the issue.

On the issue of solar licensing, NEPRA has clarified the situation, stating that incorrect information has been circulating. According to NEPRA officials, misinformation has been spread regarding solar licensing, claiming that all solar net billing customers must obtain approval from NEPRA.

Officials explained that the authority to approve connections with a capacity of less than 25 kW lies with distribution companies, and off-grid customers are not required to seek NEPRA’s approval.

They further stated that, before the new regulations, NEPRA approved connections above 25 kW. A one-time fee of Rs 1,000 per kW has now been imposed for on-grid solar connections. Officials also clarified that no new tax has been imposed on solar energy.

It is worth mentioning here that NEPRA in the month of April had introduced a major change in the basic electricity tariff structure. Under the new formula, electricity bills will no longer depend solely on the number of units consumed.

According to the details, NEPRA has approved a fundamental revision to the tariff structure at the request of the federal government. This decision has raised concerns about a significant increase in electricity bills for consumers across the country, according to media reports.

Under the new system, fixed charges will be determined based on a consumer’s approved load rather than electricity consumption (units). This new framework will come into effect from January 2026 and will apply to all domestic consumers, except for lifeline consumers.

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