NEPRA clarifies solar licensing, rejects reports of new tax

National Electric Power Regulatory Authority says misleading information is being circulated about  policy

ISLAMABAD: (UrduPoint/UrduPoint / Pakistan Point News-April 24^th, 2026) The National Electric Power Regulatory Authority (NEPRA) on Friday issued a clarification regarding solar licensing, stating that misleading information is being circulated about the policy.

The NEPRA officials said that all consumers using solar net billing systems are required to obtain approval from the regulator. However, they stressed that there is no change for off-grid users, who are not subject to Nepra’s approval process.

Officials explained that connections with a capacity of up to 25 kilowatts were previously approved by power distribution companies, while Nepra handled approvals for higher-capacity systems before the introduction of new regulations. For on-grid solar connections, a one-time fee of Rs1,000 per kilowatt has been fixed.

Nepra further clarified that no new tax has been imposed on solar systems.

Meanwhile, under recent amendments, the Power Division declared Nepra licensing mandatory for consumers installing solar systems. Reports indicate that the requirement applies to all new solar users.

Separately, the Power Division said electricity supply has improved during peak hours due to increased generation, with load management now largely restricted to high-loss areas.

A spokesperson for the division stated that higher provincial demand led to increased water discharge from dams, generating around 5,125 megawatts of electricity during peak hours. Additionally, about 400 megawatts were transmitted from the southern region to the central grid, contributing to system stability.

Distribution companies managed to maintain supply during peak demand, limiting load management to one to two hours despite increased consumption.

The spokesperson added that economic load management would continue on high-loss feeders in line with policy, clarifying that it is separate from peak-time load management.

He further noted that improved availability of LNG could help eliminate peak-time load management, adding that power plants with a capacity of around 5,500 megawatts remain idle due to LNG shortages.

In a separate clarification, the Power Division rejected reports linking solar net metering licensing directly to Federal government directives, stating that licensing falls strictly under Nepra’s regulatory framework, while distribution companies are responsible for implementation.