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No new tax: NEPRA clarifies solar licensing rules

⏱ 2 minute read
solar panels prices in Pakistan

Web Desk: Pakistan’s energy regulator, the National Electric Power Regulatory Authority (NEPRA), has clarified that no new taxes have been imposed on solar users and dismissed what it called widespread misinformation regarding solar licensing requirements.

In a statement, NEPRA officials said incorrect claims circulating in the public sphere had created confusion about licensing and approval processes for solar net metering users. They stressed that all grid-connected solar net metering consumers are required to obtain approval from the regulator under existing procedures.

However, officials clarified that distribution companies were already responsible for approving connections of up to 25 kilowatts, while NEPRA’s direct approval mandate previously applied only to systems above that threshold. They added that off-grid solar users are not subject to NEPRA licensing requirements.

Furthermore, NEPRA emphasized that under the revised regulatory framework, on-grid solar connections are subject to a one-time fee of 1,000 rupees per kilowatt. Officials reiterated that no additional tax has been introduced on solar installations.

The clarification comes amid growing public debate and social media speculation about changes in solar energy regulations, particularly as demand for renewable energy solutions continues to rise across Pakistan.

Read more: Is this the perfect time to go solar in hot weather?

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