A surge in solar power adoption is transforming Pakistan’s energy sector as businesses and households turn to cheaper, off-grid alternatives to escape soaring electricity costs. The country, which once played a minor role in global solar markets, has now become the world’s sixth-largest solar market after importing 25 gigawatts of solar panels from China over the past three years.
This shift has added nearly 50% to Pakistan’s power supply, helping alleviate reliance on the costly state-owned grid, where electricity rates have more than doubled in the last three years. With power prices reaching 16.6 cents per kilowatt-hour, businesses are paying 37% more than their counterparts in India, making solar an increasingly attractive alternative.
The Rise of Solar in Pakistan
The move toward solar is largely driven by record-high energy costs, exacerbated by expensive contracts with independent power producers and rising global fossil fuel prices. In response, wealthier businesses and households have capitalized on cheap Chinese solar panels, which can pay for themselves within two years through savings on electricity bills.
BloombergNEF data shows that Pakistan imported $1.4 billion worth of Chinese solar panels in the first half of 2023 alone, making it the third-largest national destination for these imports. The impact is evident across major cities, where rooftops of factories, hospitals, and even mosques are now gleaming with solar installations.
“Every bit of space I have, even if it’s a few feet, I want it covered in solar panels,” said Khawaja Masood Akhtar, CEO of Forward Sports, a leading manufacturer of footballs. His company has already doubled its solar energy share to 50% and aims to reach 80% by next year to remain competitive with Chinese and Indian manufacturers.
Economic and Environmental Benefits
Pakistan’s government has welcomed the solar transition, seeing it as crucial for reducing reliance on fossil fuels and addressing climate change. The country aims to increase renewable energy’s share from 32% to 60% by 2030, with solar playing a central role.
Beyond environmental gains, the shift to solar is yielding economic benefits, particularly for businesses struggling with inflation exceeding 20% and currency depreciation. Companies such as Coca-Cola, Mondelez, and Hyundai have embraced solar solutions to cut energy costs by up to 70%, making operations more sustainable.
For ordinary citizens, however, access to solar remains a challenge. With 30 million low-income households still reliant on the costly grid, provinces like Punjab and Sindh have announced plans to distribute free or heavily subsidized solar panels to help ease the financial burden on struggling families.
Challenges and Future Outlook
Despite the rapid growth of solar, Pakistan’s grid system faces new challenges. The widespread shift to off-grid solar is reducing demand for state-supplied electricity, potentially making it more expensive for those who cannot afford the switch. The government is now working to renegotiate power sector debts and privatize distribution companies to make grid electricity more affordable.
Meanwhile, the global energy community is closely watching Pakistan’s solar boom. Experts argue that energy models have consistently underestimated solar adoption in developing countries, with Pakistan proving how rapidly demand can rise when costs align with affordability.
“Pakistan is a prime example of how quickly solar can scale when it becomes economically viable,” said Jenny Chase, lead solar analyst at BloombergNEF. “The country is now on track to install at least 16 gigawatts of solar in 2024 alone—a figure that would have seemed impossible just a few years ago.”
As Pakistan races toward a more self-sufficient and sustainable energy future, its solar revolution stands as both a model for other developing nations and a challenge to global energy forecasters who have repeatedly underestimated the speed of clean energy transitions.