Guides · Faisalabad, Lahore, Punjab
Do You Need a NEPRA Licence for Solar? The 25 kW Rule Explained
Short answer
If your rooftop solar system is 25 kW or smaller, you no longer pay NEPRA anything and you no longer need NEPRA's sign-off: your DISCO (FESCO, LESCO and so on) approves it directly. Systems above 25 kW still need NEPRA concurrence and a one-time fee of Rs 1,000 per kW. You still need a net billing agreement with your DISCO if you want to export to the grid, whatever your size.
These rules changed three times in 2026. This guide sets out what each change did, in order, so you can see which rule applies to your system. We checked the regulation texts and news reports on 13 October 2026. Confirm with your DISCO before you apply, because NEPRA can amend the rules again by notification.
"Licence" or "concurrence"? Clearing up the words
People say "NEPRA licence", but the 2026 rules mostly use a different word.
- Under the 2015 net metering regulations, larger rooftop systems received a generation licence from NEPRA. Small systems of 25 kW or below did not need one; the DISCO handled them without a NEPRA fee.
- Under the NEPRA (Prosumer) Regulations, 2026, a rooftop system owner is called a "prosumer". Instead of a licence, the prosumer needed NEPRA's concurrence, a formal consent issued after the DISCO forwards the file. The press widely called this a licence, and the Rs 1,000 per kW charge a licence fee.
In practice, the question homeowners ask is the same: does my file have to go to NEPRA, and do I pay NEPRA a fee? The rest of this guide answers that question.
Approvals for solar
Small systems
Apply to your DISCO
Larger systems
Extra approvals above the threshold
Our part
We prepare, submit and follow up the file
Timeline: what changed in 2026
| Date | What happened | Effect on a 25 kW-or-smaller system | Effect above 25 kW |
|---|---|---|---|
| 9 Feb 2026 | Prosumer Regulations notified (SRO 251(I)/2026). Net metering replaced by net billing for new connections | NEPRA concurrence required; Rs 1,000 per kW fee | Same: concurrence plus Rs 1,000 per kW |
| Late April 2026 | After a Power Division request, NEPRA withdrew the licence requirement and fee for systems up to 25 kW, deemed effective from 9 Feb 2026 | No NEPRA fee | Fee unchanged |
| 6 Aug 2026 | Amendment (SRO 1330(I)/2026): systems of 25 kW or below need approval from the DISCO, not concurrence from NEPRA | DISCO approves; file does not go to NEPRA | NEPRA concurrence still required |
The February 2026 rules
The Prosumer Regulations ended net metering for new applicants and introduced net billing. They also moved approval of every rooftop system, however small, to NEPRA. The DISCO had to forward each application to NEPRA with the signed agreement, proof of the fee deposit and an affidavit. NEPRA could then grant concurrence within 7 working days of receiving complete documents. The fee was set in the regulations as a one-time, non-refundable Rs 1,000 per kW.
For a home, that meant one more office, one more payment and one more wait.
The April 2026 change
The Power Division, on the energy minister's direction, asked NEPRA to restore the old approach for small systems: no NEPRA licence and no fee at 25 kW and below. NEPRA issued a notification within days. Reports at the end of April said the licence requirement and fee were withdrawn for systems up to 25 kW, deemed effective from 9 February 2026. If you paid the fee for a small system after 9 February, ask your DISCO how a refund or adjustment is handled.
One caution. A press report in May 2026 said NEPRA had kept the licensing step and dropped only the fee, while other outlets reported the licence requirement itself as abolished. The August amendment below settles the point for small systems going forward.
The August 2026 amendment
On 6 August 2026, NEPRA notified an amendment to the Prosumer Regulations. It adds a proviso to regulation 4: a prosumer with a facility of 25 kW or below does not need to seek concurrence from NEPRA, and the DISCO gives its approval instead. Several other clauses now read "concurrence or approval" so the same process works for both routes. Business Recorder reported the change the next day.
What applies to your system now
| Your system | Who approves | NEPRA fee | Agreement with DISCO |
|---|---|---|---|
| 25 kW or smaller, exporting | Your DISCO | None | Net billing agreement, 5 years |
| Above 25 kW, exporting | NEPRA concurrence after DISCO review | Rs 1,000 per kW, one-time | Net billing agreement, 5 years |
| Any size, no export (self-use only) | Check with your DISCO | — | Not needed for net billing |
| Large system, 250 kW and above | NEPRA, plus a load flow study | Rs 1,000 per kW | Net billing agreement |
DISCO meter and connection charges are separate from the NEPRA fee and are paid by the prosumer: WhatsApp for today's rate.
A few other limits apply at every size. Your system cannot exceed your sanctioned load, with an overall cap of 1 MW. Net billing is available to three-phase 400 V or 11 kV consumers. A DISCO may refuse new connections on a transformer whose connected generation has reached 80 percent of its rating. Our net metering and net billing guide explains each of these, including the export rate.
Worked example: the fee above 25 kW
These are round numbers for illustration, not a quote.
- A 20 kW home system: NEPRA fee nil. The DISCO approves.
- A 30 kW system for a shop or small office: 30 × Rs 1,000 = Rs 30,000 one-time NEPRA fee, plus DISCO charges.
- A 100 kW factory rooftop: 100 × Rs 1,000 = Rs 100,000 one-time NEPRA fee, plus DISCO charges.
For most factories this fee is a small part of the project budget. The bigger planning issues are sanctioned load, transformer capacity and how much of the output the site uses itself. See industrial and commercial solar.
Should you size just under 25 kW?
Some owners ask whether to keep a system at 24 or 25 kW to stay on the DISCO-only route. It can make sense when the load fits. It should not be the main reason for a size. Under net billing, exported units earn far less than the units you buy, so the right size depends mainly on your daytime use and evening needs. Our hybrid vs on-grid vs off-grid guide and the solar system price guide help you weigh this.
Also note how capacity is counted. Check with your DISCO whether the 25 kW limit is read against the inverter rating, the panel (DC) capacity or the sanctioned load.
Existing net metering users
If you signed a net metering agreement before 9 February 2026, or applied by 8 February, you keep the old terms until your agreement expires. Changing your system capacity can move you to net billing, so do not add panels or change your inverter without checking first. Renewals after expiry come under net billing.
How to apply, in short
- Get your DISCO's forms (free, within 2 working days).
- Submit technical details of panels and inverter, a single-line diagram, your CNIC and a recent paid bill.
- The DISCO checks completeness (5 working days) and reviews feasibility (15 working days).
- Sign the agreement, pay the connection estimate, and the DISCO installs the meter.
- Up to 25 kW, the DISCO approves. Above 25 kW, the file goes to NEPRA with the fee.
LESCO handles post-February applications through its Net Billing Portal. For the document list and meter types, see our green meter and FESCO/LESCO guide. If you do not want to export at all, read about the zero export device.
How Solar Works Pakistan helps
Solar Works Pakistan designs every system in-house and installs with its own teams, from about 6 kW to megawatt scale, across Punjab. We size around your load and the current net billing rules, and our quotation lists the brand, model, quantity and specification of each item, which is the information your DISCO file needs.
Solar Works Pakistan prepares and submits the net billing application and documents to FESCO or LESCO on your behalf.
Get today's price or a free site survey
- WhatsApp or call: 0336 666 4321
- Email: info@solarworks.pk
- Head office: Main Boulevard, Sargodha Rd, Block F FDA City, Faisalabad
- Lahore branch: 2nd Floor, Jeff Heights, Gulberg, Lahore
- Hours: 9:00 AM to 6:00 PM, daily
We serve all of Punjab. See our Faisalabad and Lahore pages, or contact us with your last 12 months of bills. Site surveys are normally free.
Frequently asked questions
Do I need a NEPRA licence for a 10 kW home solar system?
No NEPRA fee and no NEPRA concurrence are needed for systems of 25 kW or below. Your DISCO approves the connection under the August 2026 amendment. You still need a net billing agreement with the DISCO if you want to export.
How much is the NEPRA fee for solar above 25 kW?
A one-time, non-refundable Rs 1,000 per kW, as set in the Prosumer Regulations. DISCO meter and connection charges are separate. NEPRA can change the fee by notification, so confirm it when you apply.
What is NEPRA concurrence?
It is NEPRA's formal consent to connect a prosumer's system, issued after the DISCO forwards the file. Under the 2026 rules it replaced the older licence for net metering systems. Since August 2026 it is required only above 25 kW.
I paid the NEPRA fee for a small system in early 2026. What now?
The April 2026 withdrawal was reported as effective from 9 February 2026. Ask your DISCO or NEPRA how fees already paid for systems of 25 kW or below are treated.
Does a system without grid export need NEPRA approval?
The NEPRA process covers prosumers who connect to export under net billing. If you install a self-use system with export blocked, ask your DISCO what it requires for your connection.
Is the 25 kW limit the same as my sanctioned load?
No. The 25 kW figure decides who approves your system. Separately, your system cannot exceed your sanctioned load. If you need a bigger system, apply to raise the sanctioned load first.
Sources
- NEPRA (Prosumer) Regulations, 2026, SRO 251(I)/2026, 9 February 2026 (copy hosted by K-Electric)
- NEPRA, amendment notification SRO 1330(I)/2026 dated 6 August 2026
- NEPRA, draft amendment to regulation 21 (existing agreements)
- Dawn, "Power Division urges Nepra to abolish licence requirement, fee for solar consumers below 25kW" (26 Apr 2026)
- The News, "Nepra scraps solar licence fee for systems up to 25kW" (28 Apr 2026)
- APP, "Up to 25 kW: NEPRA abolishes licence requirement for small solar users" (28 Apr 2026): https://www.app.com.pk/?p=1201491
- Business Recorder, NEPRA draft to simplify approvals for systems up to 25 kW (30 Apr 2026)
- Pakistan Observer, report that licensing was retained and only the fee removed (11 May 2026)
- Business Recorder, "Regulations amended: Small-scale prosumers exempted from Nepra's approval" (7 Aug 2026): https://www.brecorder.com/news/40433712
- The Nation, "Reversing earlier decisions, Nepra exempts pre-Feb 9 prosumers from new regulations" (3 Apr 2026)