Pakistan has quickly become one of the largest markets for solar energy, rising to the level of major global solar consumers in just two to three years.
According to the World Economic Forum, Pakistan imported 13 gigawatts of solar panels in the first half of the current fiscal year, making it the third-largest importer of Chinese solar panels worldwide.
This surge in solar panel imports has greatly strengthened Pakistan’s renewable energy sector. Imported solar panels now represent over 30% of the country’s total production, which reached 46 gigawatts in 2023.
The growing demand from both domestic consumers and businesses seeking to lower their high electricity bills is a key factor driving this expansion.
Over the past decade, solar panel prices have dropped by 90%, further accelerating Pakistan’s transition to solar power.
The government has played a crucial role by removing a 17% sales tax and introducing a net metering policy, which has sped up the adoption of solar energy.
However, rising electricity costs, compounded by poorly negotiated agreements with Independent Power Producers (IPPs), have intensified the need for alternative energy sources.
According to the Institute for Energy Economics and Financial Analysis, Pakistan made capacity payments totalling 6 trillion rupees ($21.5 billion) between 2019 and 2023.
The shift to solar energy has not only reduced economic pressures from imported coal plants but has also had a positive environmental impact.
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As a result, the solarisation process has enhanced energy security, created jobs, attracted foreign investment, and supported environmental sustainability.
