How to Register a Solar Company with AEDB in Pakistan

The solar industry in Pakistan is expanding rapidly. With the increasing demand for renewable energy, many entrepreneurs are establishing solar businesses.

However, registering your company with the Alternative Energy Development Board (AEDB) is essential for compliance and credibility.

This guide simplifies the AEDB registration process, covering all requirements step by step.

Why Should You Register Your Solar Business with AEDB?

Registering under AEDB’s Certification Regulations, 2021 offers several benefits:

• Builds customer trust and brand credibility.
• Makes your business eligible for government projects.
• Opens doors to financial incentives or tax exemptions.
• Improves your competitive advantage in the solar market.

Step 1: Obtain and Complete the AEDB Application Form

Start by downloading the application form from the AEDB website.

This document lays the groundwork for your registration. Fill in all required fields carefully to avoid delays.

Step 2: Prepare the Required Documentation

Ensure you submit all mandatory documents along with the application. Below is a detailed checklist:

1. Authorization and Identification Documents

• Board resolution or authorization letter.
• A copy of your CNIC or passport.

2. Company Profile and Registration

• A brief company profile highlighting your business goals and services.
• Certificate of incorporation (for private limited companies) or a registered partnership deed.

Step 3: Secure a PEC License

Obtaining a license from the Pakistan Engineering Council (PEC) is a vital step. Your PEC certification must align with the following codes for renewable energy systems:

• EE-11: General electrical and solar systems.
• ME-07: General mechanical and solar systems.

The category of your license (C-1, C-2, or C-3) will determine the scale of projects your business can handle.

Step 4: Fulfill Tax Registration Requirements

To register with AEDB, your business must comply with Pakistan’s tax regulations. Prepare the following documents:

Income Tax

• Income tax registration certificate.
• Active taxpayer status report (from FBR).

Sales Tax

• Sales tax registration certificate.
• Sales tax returns for the past three months.

Step 5: Register for Provincial Tax Compliance

If you operate in multiple provinces, you’ll need to register for sales tax on services in each province.

Provide:

• Proof of registration under provincial tax laws.
• Active taxpayer status reports.

Step 6: Submit Your Project Portfolio

AEDB requires proof of your experience in solar installations.

Submit a list of completed projects using the specified proforma available on their website.

Step 7: Pay the Application Processing Fee

The AEDB application processing fee is non-refundable. Deposit the fee in the name of the Alternative Energy Fund and keep the receipt as proof of payment.

Step 8: Provide a Bank Guarantee

Submit a bank guarantee worth PKR 500,000, valid for four years.

This demonstrates financial reliability and is a mandatory part of the registration process.

Step 9: Submit an Affidavit

Prepare an affidavit on stamp paper signed by you or an authorized representative.

Follow the format provided in Schedule 2, Part I, Sr. No. XI of the AEDB regulations.

Step 10: Finalize Certification Fee Payment

Finally, pay the AEDB certification fee in the name of the Alternative Energy Fund. Submit the proof of payment along with your application.

Step 11: Review and Submit Your Application

Double-check all documents to ensure accuracy. Sign and stamp them where required before submitting your application to AEDB.

Is There a Minimum Business Age Requirement for AEDB Registration?

No, AEDB does not require your business to be operational for a specific time before applying.

However, the board evaluates your experience through completed solar installation projects.

Submitting a detailed project portfolio is critical, even for newer businesses.

Can I Directly Apply for AEDB’s Unlimited Project Category?

AEDB certification is divided into categories based on project size and complexity.

New businesses typically start with a limited category. However, if your company meets the requirements, for high-scale projects, you may directly apply for the “No Limit” category.

Ensure your business can handle large-scale solar projects before applying for this advanced classification.

Can I Upgrade My AEDB Category Later?

Yes, AEDB allows businesses to upgrade their category. To do this, you’ll need to:

• Submit an updated project portfolio showcasing your company’s growth and successful installations.
• Provide any additional documents or fees required for the higher category.

Upgrading your category can help you take on larger projects and expand your business.

Pro Tips for a Successful AEDB Registration

Start Early
Begin preparations well in advance. Key steps like obtaining PEC licenses and completing tax registrations may take time.

Organize Your Documents
Use a checklist to track your documents. Arrange them in the required order to avoid confusion during submission.

Use AEDB’s Templates
Follow AEDB’s formats for affidavits, project portfolios, and other documents. This reduces the chances of rejection.

Seek Professional Help
If the process feels overwhelming, consult a legal or business expert familiar with AEDB registration.

Verify Tax Compliance
Double-check your tax registrations and ensure all filings, such as sales tax returns, are up-to-date. Inactive taxpayer status can cause delays.

Highlight Your Experience
Emphasize the quality and scale of your installed projects in your project portfolio. It strengthens your application.

Stay Informed
Regulations and requirements can change. Regularly visit the AEDB website to stay updated.

Invest in Training
Ensure your team has qualified professionals for solar installations. This demonstrates technical expertise to AEDB evaluators.

Be Financially Prepared
Set aside funds for the application fee, certification fee, and bank guarantee. This ensures a smooth process without financial hiccups.

Maintain Communication
Follow up with AEDB after submitting your application. Address any feedback or additional requirements promptly.

Conclusion

By following the AEDB process and providing all required documents, your company can become a certified solar installer.

Whether you’re a new business or looking to scale, AEDB certification paves the way for growth in Pakistan’s renewable energy sector.

Start your journey today and contribute to a greener future.

FAQs