The government has scrapped the requirement for a license and license fee for solar prosumers with systems up to 25 kilowatts after facing widespread public criticism over what was dubbed a “tax on sunlight.”
According to an official notification, consumers installing solar systems of 25 kW or less will no longer be required to obtain a license or pay any associated fees.
The move has been widely welcomed as a step toward making clean energy more affordable and accessible.
The decision is expected to benefit thousands of households and small businesses that have either already adopted solar power or are planning to do so in response to rising electricity costs.
However, the National Electric Power Regulatory Authority (NEPRA) has clarified that consumers with a capacity exceeding 25 kW will still be required to pay a licence fee of Rs. 1,000 per kW.
(1/2) وزیرِ توانائی سردار اویس احمد خان لغاری کی ہدایت پر، پاور ڈویژن نے نیپرا سے 25اور 25کلو واٹ سے کم سولر صارفین کے لیے فیس ختم کرنے اور لائسنس کی ضرورت نہ ہونے کیلیے نظرِ ثانی کا باضابطہ کہہ دیا ہے ۔ pic.twitter.com/uWA5RHZoLw
— MOE- Power Division, Government of Pakistan (@MoWP15) April 26, 2026
On Sunday, the Power Division directed NEPRA to eliminate the licensing requirement for solar prosumers up to 25 kW. In its statement issued the same day, the Power Division said that, on the instructions of Power Minister Awais Leghari, it has formally requested NEPRA to review the policy and remove both the application fee and licensing requirement for consumers within this category.
The Power Division also noted that it had earlier warned NEPRA about the negative impact of the original decision and had urged that the policy be aligned with previous regulations.
