NEPRA Clarifies No Approval Needed for Off-Grid Solar

The National Electric Power Regulatory Authority (NEPRA) has issued a formal clarification distinguishing the regulatory requirements applicable to off-grid and on-grid solar installations, stating that consumers operating off-grid systems are not required to obtain prior approval from the Authority. Conversely, consumers opting for grid-connected systems remain subject to the existing net metering and net billing regulatory framework.

According to NEPRA, solar consumers operating under net billing arrangements must obtain the requisite approvals in accordance with established procedures, which include the payment of a one-time processing fee calculated at PKR 1,000 per kilowatt for grid-connected installations.

The clarification was issued in response to reports that had created ambiguity by suggesting that all solar users would be subject to new licensing requirements. NEPRA has categorically stated that no such blanket licensing obligation has been introduced.

Under the prevailing regulatory regime, installations exceeding 25 kilowatts fall within the direct approval jurisdiction of NEPRA, whereas systems below this threshold are processed and approved by the respective power distribution companies (DISCOs).

The Authority further emphasized that no additional tax has been imposed on solar installations, and characterized circulating claims regarding new licensing requirements as inaccurate and misleading.

In a related development, the Power Division has also refuted reports indicating that the federal government has mandated licensing for all solar users. Officials have reiterated that the existing regulatory framework governing net metering remains unchanged and continues to operate under NEPRA’s oversight without any recent amendments.