Rising energy prices and frequent outages are driving the increased adoption of solar power among households and businesses.

As of 2023, the 630MW installed solar power capacity accounted for only 1.4% of the total installed energy capacity in Pakistan. 

Power sector regulator, National Electric Power Regulatory Authority (Nepra), projects that the nation’s photovoltaic capacity will increase dramatically to 12.8 gigawatts (GW) by 2030, and an astounding 26.9GW by 2047. This ambitious trajectory suggests a strong and accelerating shift to solar power.

Talking to WealthPK, Rafiullah Shams, Manager at RS Solar Solution, a green energy solution provider, said the adoption of solar power systems had increased due to growing household expenses incurred on the costly fuel-based electricity. “A growing number of households opt for solar installations as a sustainable and affordable alternative to conventional energy sources because they are getting more expensive and unstable.” 

He highlighted that the substantial initial investments in solar panels were seen as a wise financial move, given the long-term savings on electricity bills and the decreasing costs of solar technology. “This trend is reflective of a global shift towards renewable energy, particularly in countries like Pakistan, which are faced with ongoing energy challenges.”

It is worth mentioning that Pakistan had 117,807 net metering-based solar installations with a cumulative capacity of 1,822MW as of March 2024. This remarkable increase demonstrates how Pakistani households have begun to accept and use solar energy more and more.

“To support this shift, the government must implement policies that not only address the high cost of electricity but also promote the adoption of renewable energy sources. An important policy advice is to start providing tax breaks and subsidies for solar energy installations.”

Shams said another crucial policy step could be restructuring electricity tariffs to ensure they truly reflect the cost of production to shield customers from exorbitant bills. “Implementing a tiered pricing structure, where lower rates are applied to basic consumption levels and higher rates for excess usage, could help manage energy costs more effectively.”  

Talking to WealthPK, Faraz Khan, an energy expert at the Pakistan-German Renewable Energy Forum, said that people could produce their electricity while transferring excess power back into the grid via the net metering system. “This is an effective way to reduce excessive energy bills and potentially profit from surplus generation.”

He pointed out that the solar industry’s growth was demonstrated by the rising number of certified installers, which had surpassed 400. “This growth in the solar energy ecosystem indicates industry’s growth and increasing trust in solar technology.” 

“More licensed installers mean that regulatory standards are met for installation quality, which is essential to preserving the reliability and effectiveness of solar power systems,” he underscored.
Khan suggested the government stimulate wider adoption of solar energy by lowering the costs for consumers. “Eliminating import taxes on batteries and solar panel components would reduce prices and promote the expansion of the solar industry.”

“The government should allocate funds to modernise the energy infrastructure to minimise transmission losses and boost effectiveness. This will improve the overall reliability of the energy supply in addition to bringing down the price of electricity,” emphasised the energy expert.