• By Best Solar Company PK
  • 25 Sep, 2026
  • Solar Policy
  • 7 min read

If you are planning rooftop solar in Pakistan this year, the biggest question you will hear is about the **NEPRA prosumer licence fee** — the one-time Rs1,000 per kilowatt charge that briefly applied to *every* grid-tied system, regardless of size. The rule caused a national uproar over "taxing sunlight," and it has since been partly reversed. This guide explains what actually happened in 2026, who still pays the fee, who is now exempt, and how to get your system approved.

What NEPRA changed in February 2026

On 9 February 2026, NEPRA notified the **NEPRA (Prosumers) Regulations, 2026**. In one move it retired the 2015 net-metering framework and replaced it with a new **net billing** model. Two things changed at once:

  • Every distributed-generation facility now needed a formal **prosumer licence/registration** from NEPRA before a Distribution Company (DISCO) could connect it.
  • A **one-time Rs1,000 per kW** fee became payable — even on small household systems that were previously exempt.

Under the old 2015 rules, systems of **25kW or below did not need a NEPRA licence at all**. Applications went straight to the DISCO (LESCO, K-Electric, MEPCO, IESCO and others) free of charge. The February 2026 notification scrapped that exemption and centralised approval with NEPRA, so a typical 10kW home system suddenly faced a Rs10,000 licensing bill on top of installation costs.

Overnight, a rooftop that once needed only a free DISCO application was staring at a per-kilowatt federal fee — and the public reaction was immediate and furious.

The backlash and the partial rollback

Solar associations, homeowners and the media framed the move as a "tax on sunlight." The **Power Division**, led by Federal Minister for Energy Sardar Awais Ahmad Khan Leghari, formally directed NEPRA to withdraw the fee and licence requirement for small consumers.

NEPRA complied. Through a notification issued on **28 April 2026** (with effect backdated to 9 February 2026), the regulator **abolished both the licence requirement and the Rs1,000/kW fee for systems up to 25kW**. For these small prosumers, applications once again go **directly to the DISCO** — no NEPRA licence, no per-kW charge.

So the headline "every system now needs a licence plus a Rs1,000/kW fee" was true for barely eleven weeks. As of today, the fee survives only for larger installations.

Who pays the Rs1,000/kW fee now

Here is the current position for 2026, after the rollback:

| System size | NEPRA licence? | Rs1,000/kW fee? | Who approves | |---|---|---|---| | Up to 25 kW (most homes) | No | No (exempt) | DISCO directly | | Above 25 kW, up to 1 MW | Yes (registration) | Yes — one-time | NEPRA + DISCO |

A few worked examples make the cost clear:

  • A **12kW home** system: **Rs0** in NEPRA fees — fully exempt.
  • A **50kW** commercial rooftop: **Rs50,000** one-time fee, plus the licensing process.
  • A **200kW** factory system: **Rs200,000** one-time fee.

For most households the practical impact is now zero. For businesses, schools, and factories crossing the 25kW threshold, the fee is real but modest against a project that typically runs into millions of rupees.

The bigger change: net metering became net billing

The licence fee grabbed headlines, but the shift from **net metering to net billing** matters far more to your payback period. Under the old net-metering system, your exported units were netted against imported units at roughly the **retail tariff** — effectively Rs21–27 per unit of value.

Under net billing:

  • The DISCO **buys your surplus** export at the **National Average Power Purchase Price (NAPPP)** — currently around **Rs10–11 per unit**, sharply down from about Rs27.
  • You still **buy** grid electricity at the full applicable consumer tariff.
  • New agreements run for an **initial five years**, renewable for another five.

The gap between what you sell at and what you buy at is what stretches your payback. The clear lesson for 2026 is to **size your system to self-consumption** rather than to export as much as possible. Read our companion explainer on net metering versus net billing in Pakistan and the latest NEPRA solar buyback rate for the numbers behind your quote.

Are existing net-metering users affected?

No — and this is important. After further political intervention, NEPRA confirmed that **existing net-metering consumers keep their current agreements until those contracts expire**. You are not being switched to net billing mid-contract. The new net-billing terms and any applicable licence fee apply to **new applications** and, eventually, to renewals.

How to get your grid-tied system approved in 2026

For a standard home system (up to 25kW), the route is straightforward:

1. Confirm your sanctioned load supports the system size (a three-phase connection is usually needed above ~15kW). 2. Have a **NEPRA-licensed/AEDB-certified installer** prepare the single-line diagram and equipment specs. 3. Submit the **net billing application directly to your DISCO** with your CNIC, a recent bill and the technical annexures. 4. The DISCO inspects, then installs a **bidirectional meter**.

For systems **above 25kW**, add the NEPRA registration step and deposit the **Rs1,000/kW** fee before the DISCO issues final approval. Budget a few extra weeks for the federal layer.

Our own experience across LESCO and MEPCO regions in 2026 is that documentation errors — mismatched load, missing inverter datasheets, or an uncertified installer — cause more delays than the fee itself. Get the paperwork right the first time.

Frequently Asked Questions

**Does every solar system in Pakistan need a NEPRA prosumer licence in 2026?** No. After the April 2026 rollback, systems up to 25kW need **no NEPRA licence and pay no Rs1,000/kW fee** — the DISCO approves them directly. Only systems above 25kW require NEPRA registration and the per-kW fee.

**How much is the NEPRA prosumer licence fee?** It is a **one-time Rs1,000 per kilowatt** of installed capacity, payable to NEPRA — but only for systems larger than 25kW. A 40kW system, for example, pays Rs40,000 once.

**What is the new solar buyback rate under net billing?** DISCOs now buy your exported surplus at the National Average Power Purchase Price, currently about **Rs10–11 per unit**, compared with roughly Rs27 under the old net-metering regime.

**Will my existing net-metering agreement change?** No. Current net-metering contracts remain valid **until they expire**. Net billing and any licence fee apply to new applications and renewals, not to consumers already on a valid agreement.

The bottom line

The scare that every rooftop would need a licence plus a Rs1,000/kW fee is, for the vast majority of Pakistani homeowners, no longer true — the **NEPRA prosumer licence fee** now applies only above 25kW. The change that genuinely affects your return on investment is the move to net billing and the lower buyback rate. Size your system for self-use, choose a certified installer, and talk to our team at Best Solar Company PK before you sign a net billing agreement so your project stays profitable under the 2026 rules.

**Sources:**

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.