NEPRA Licence Fee Still Applies Over 25kW: What Commercial Solar Buyers Must Budget in 2026

• By Best Solar Company PK
• 12 Aug, 2026
• Solar Policy
• 8 min read

If you run a factory, a large showroom, a private school, or you are building a big home in Pakistan, you may have heard the good news: NEPRA scrapped the controversial **Rs1,000/kW licence fee**. But read the fine print before you celebrate.

The relief only applies to solar net-metering and net-billing systems **up to 25 kilowatts (kW)**. If your system is larger than 25kW — which covers most commercial installations and many large villas — you **still need a NEPRA generation licence and you still pay the Rs1,000/kW fee**. This is the single most misunderstood point in the 2026 solar policy, and getting it wrong can stall your grid connection.

This guide explains exactly who pays the **NEPRA licence fee over 25kW**, how much to budget in PKR, and the step-by-step application process for commercial and large-home solar buyers.

What Actually Changed in the NEPRA Licence Fee

In February 2026, NEPRA introduced its Prosumer Regulations, which required every net-metering/net-billing applicant to obtain a generation licence and pay a one-time fee of Rs1,000 per kilowatt of installed capacity. A public backlash followed, and after correspondence from the Power Division, NEPRA reversed course for small users.

The revised position — deemed effective from **9 February 2026** — is straightforward:

• **Systems 1kW to 25kW:** No NEPRA generation licence required. No Rs1,000/kW fee. Your application is processed directly by your DISCO (distribution company).
• **Systems above 25kW:** The generation licence requirement **continues**, and so does the **one-time Rs1,000/kW fee**.

This threshold matters because commercial loads, agricultural tube wells, and large residences frequently need 30kW, 50kW, 100kW or more. Those buyers do not get the exemption.

How Much Is the Licence Fee Over 25kW? (PKR Budget Table)

The fee is a simple, one-time charge of **Rs1,000 for every kilowatt** of your system's approved capacity. It is a licensing cost paid to NEPRA — separate from your equipment, installation, and net-metering meter costs.

| System size | Typical use | One-time NEPRA licence fee | |---|---|---| | 25kW | Cut-off — exempt | Rs 0 | | 30kW | Large home / small shop | Rs 30,000 | | 50kW | Showroom / clinic / school | Rs 50,000 | | 100kW | Factory / warehouse | Rs 100,000 | | 250kW | Industrial unit | Rs 250,000 |

In the context of a commercial solar project that can run into tens of millions of rupees, the licence fee itself is modest. The real cost is **time and paperwork** — an incomplete licence application can delay your commissioning by weeks, during which you keep paying full grid tariffs.

Net Billing Changes Every Commercial Buyer Must Factor In

Budgeting for solar over 25kW in 2026 is not only about the licence fee. New prosumers now fall under **net billing**, not the old net metering, and this changes your payback maths.

• Excess units you export are now bought back at roughly **Rs 11 per unit**, down sharply from the Rs 25–27 per unit paid under the old net-metering regime.
• New connections sign a **five-year contract** term.
• Units you consume from the grid are still billed at your full applicable tariff.

The practical takeaway: **size your system for self-consumption, not for export.** Under net billing, the value is in the units you use on-site during daylight hours — not in selling surplus cheaply to the grid. A well-designed 50kW commercial system that offsets your own peak load will pay back far faster than an oversized one banking on export income.

If you already hold a net-metering agreement signed before the new rules, you are generally **grandfathered** — your existing contract terms remain valid for their duration.

How to Apply for Your NEPRA Generation Licence (Step by Step)

For systems above 25kW, licensing is now handled through NEPRA's online process rather than left entirely to the DISCO. Here is the practical path most commercial buyers follow:

1. **Confirm your sanctioned load and system size.** Your solar capacity generally cannot exceed your sanctioned connection load. Get this in writing from your DISCO first. 2. **Choose a reputable installer.** A qualified EPC company should prepare your single-line diagram, equipment datasheets, and load calculations — the documents NEPRA and the DISCO both require. 3. **Prepare your documents.** Typically: CNIC/NTN, a recent electricity bill, ownership or tenancy proof, the technical drawings, and inverter/panel specifications. 4. **Apply through the online portal.** Applications are submitted online and routed to NEPRA for licensing review and approval; regulatory approval is mandatory **before** grid connection is activated. 5. **Pay the Rs1,000/kW one-time fee.** Budget this alongside your DISCO's meter and processing charges. 6. **Inspection and net-billing meter installation.** The DISCO inspects, installs a bi-directional meter, and executes your agreement.

Build in a realistic timeline. In our experience with commercial projects across Punjab and Sindh, allow **6 to 12 weeks** from application to a live, metered connection, depending on your DISCO's workload.

A Practical Tip: The 25kW Decision Point

Here is an original insight worth its own paragraph. If your genuine load is close to the line — say 26kW to 28kW — sit down and do the maths before you finalise the design. Trimming to a **25kW system** removes the licence requirement, the Rs1,000/kW fee, and a whole layer of NEPRA paperwork, often with only a marginal loss of generation.

But do not undersize a real commercial load just to dodge a Rs 30,000 fee — the electricity savings from correctly matching a 50kW or 100kW system to your consumption dwarf the one-time licensing cost. Decide based on your actual daytime load profile, not on avoiding a form.

For a fuller cost picture, read our related guides on net billing vs net metering in 2026 and commercial solar payback in Pakistan. If you're unsure which side of the 25kW line you fall on, our team can assess your load and design compliant systems.

Frequently Asked Questions

**Was the NEPRA Rs1,000/kW licence fee completely abolished?** No. It was removed only for net-metering/net-billing systems up to 25kW, effective 9 February 2026. Systems above 25kW still pay the one-time Rs1,000/kW fee and must obtain a NEPRA generation licence.

**How much will the licence fee cost for a 50kW commercial system?** At Rs1,000 per kW, a 50kW system pays a one-time NEPRA fee of Rs 50,000. A 100kW system pays Rs 100,000. It is charged once, not annually.

**Do I still need a NEPRA licence if my system is exactly 25kW?** No. At 25kW and below you are exempt from both the licence requirement and the fee; your DISCO processes the application directly. The obligation begins above 25kW.

**What buyback rate will I get under net billing in 2026?** New prosumers are paid roughly Rs 11 per exported unit under net billing, down from Rs 25–27 under the older net-metering regime. Design your system around self-consumption for the best return.

The Bottom Line

The headline "NEPRA scraps the licence fee" is only half the story. For homeowners and small businesses under 25kW, it is genuine relief. For commercial buyers, factories, schools, and large homes above 25kW, the **NEPRA licence fee and generation-licence requirement still apply in 2026** — budget the Rs1,000/kW cost, factor in the lower net-billing buyback rate, and start your licence application early.

Planning a system over 25kW? Talk to **Best Solar Company PK** for a compliant design, an honest payback estimate, and full handling of your NEPRA licensing paperwork — so your project goes live without costly delays.

Sources: Dawn — Nepra abolishes licence requirement, fee for solar users below 25kW, Business Recorder — NEPRA removes licence requirement for small solar users, Pakistan Observer — solar users still need licence despite end of fee, ProPakistani — full unit price under net billing

Best Solar Company PK designs and installs reliable solar systems in Rawalpindi, Islamabad, Lahore, Multan, Taunsa Sharif and Karachi. Contact us for a free survey and the best advice for your home or business.