How solar panels are reshaping Pakistan's energy landscape

Time Business News

9 hours ago

It was a blistering afternoon in Lahore, and the city's heat felt unbearable as the family coping with the latest load‑shedding struggled. Suddenly lights flickered back on, they had recently installed solar panels. Quietly they enjoyed air-conditioning while neighbours kept checking their phones for updates. This story isn't just about staying cool, it reflects a growing trend across Pakistan: solar panels delivering silent relief when grid power fails.
Electricity tariffs have surged by more than 150 percent over the past three years, pushing many households and businesses toward solar setups. Grid load‑shedding remains frequent, particularly in urban and industrial zones, prompting a shift to cleaner, more dependable energy sources.
By early 2025 net‑metered solar capacity in Pakistan surpassed 5.3 GW, up from 4 GW in 2024 and just 2.8 GW in early 2025, reflecting a 12 percent jump in net‑metered installations during the fiscal year. This capacity serves over 283,000 on-grid consumers nationally, not including off-grid setups used widely in rural areas.
The solar energy market in Pakistan was valued at approximately USD 1.2 billion in 2023 and is forecast to grow at a CAGR of about 20.5 percent, reaching USD 5.3 billion by 2031. Installed base is expected to increase from roughly 2 GW in 2025 to nearly 14 GW by 2030.
Manufacturing scale and technological improvements have driven module prices down globally by about 75–90 percent since 2010, making solar power more affordable than ever. Residential rooftop installations in other markets have seen average cost reductions of over 60 percent between 2010 and 2016.
For many households the return on investment comes in just 3 to 5 years. A Reddit user from Karachi shared that their 5 kW system produced about 30 kWh a day, cutting their energy costs by over Rs 112,000 in just 141 days, about 8.6 percent of upfront cost, with estimated payback under 4.5 years.
Pakistan's net‑metering system allows consumers to feed excess power back into the grid, effectively using daytime solar production to offset night‑time consumption. This structure has encouraged more rooftop installations, especially among residential and commercial users who have reliable grid access.
Large‑scale adoption of solar is helping reduce greenhouse gas emissions and ease strain on the national grid. Currently solar contributes about 14% of Pakistan's total electricity mix as of 2024, up from just 4% in 2021.
Hybrid systems and smart monitoring tools are also giving users real-time control over their usage, driving awareness and further efficiency.
Ideal for those with reliable electricity access. These systems use net‑metering to reduce bills and require minimal maintenance.
Perfect for remote areas or frequent outages, combining solar panels with battery storage. Hybrid systems store surplus power during daylight and provide backup at night.
In Pakistan, such systems are growing rapidly, especially in agricultural and rural applications, where many households already operate off-grid solar setups.
Pakistan's government aims to generate 30% of electricity from renewables by 2030. Several incentives and revised tariffs have allowed more households to adopt solar easily. Custom duty exemptions and net-metering policies have accelerated growth.
However, policymakers are considering reforms, reducing net‑meter buyback rates from Rs 27 to Rs 10 per unit, and introducing import tariffs on Chinese panels, to stabilize grid finances. Analysts warn these moves could slow adoption momentum among lower-income users.
Despite trade-offs, experts expect solar demand to remain strong thanks to cost reductions and rising energy insecurity.
In Karachi wealthy homeowners have installed rooftop solar to ensure uninterrupted power during peak hours. Their systems often have high storage capacity combined with hybrid inverters, allowing them to sell surplus power back via net‑metering, offsetting costs while reducing grid dependence.
In rural Punjab, solar-powered tubewells have enabled farmers to pump water without diesel, supported by government subsidies under federal programs worth billions targeting agriculture solarisation.
Energy analysts also point to the nascent growth of off-grid solar in parts of Sindh and Balochistan, where entire villages rely on community solar microgrids for lighting and fans, replacing kerosene and diesel alternatives. Assess energy usage and system size (e.g., typical rooftop solar units yield 300‑350 W per panel under 300 days of sunshine in Pakistan)
Understand upfront costs and financing options, most systems now pay off within 3–4 years
Whether customer has grid access (allows net-metering) or must rely on battery systems
Installation quality and warranties, most panels offer 20–25 year lifetime guarantees
Local energy experts can help with site assessment, design, installation, and setup of monitoring tools. Expert services assist with tailored system planning and maintenance, covering everything from site assessment to performance monitoring.
The rise of solar panels in Pakistan isn't just a passing trend, it's rooted in economics, policy, and real human benefit. As costs decline and energy instability grows, solar becomes both a practical and powerful choice for families and businesses. Its impact stretches beyond savings, it transforms power access, empowers users, and reshapes the future.
With over 5 GW net‑metered capacity, thousands of installations thriving across cities and villages, and stories of solar saving lives and livelihoods, the question is: how will you join this energy transformation in the years ahead?
TIME BUSINESS NEWS