LAHORE - The Pakistan has seen a significant increase in solar energy share and net-metering, as the Lahore Electric Supply Company (LESCO) region’s share of solar energy production has touched to the figure of 15 percent of its power demand with the Chinese solar panels cost continue to plunge, leading to significant cut in profit margin of solar industry of China.
Industry experts said that with Pakistan a key market and the second-largest destination for PV products, Jan-June of this calendar year has been a turbulent period for China’s solar industry, as financial reports from 42 top Chinese photovoltaic companies show falling profits, overproduction and stiff competition. With Pakistan a key market and the second-largest destination for PV products, the financial performance of China’s top solar companies paints a grim picture overall, as their revenue for the top 42 companies collectively dropped by 18.92 percent, with net profits plummeting by a staggering 88.80 percent compared to the same period in 2023.
Despite these challenges, some companies, including Trinasolar, have managed to navigate the storm with strategic shifts in focus. Their success came from advanced n-type TOP Con technology, particularly 210mm n-type i-TOP Con Vertex N series modules. This company reported a net profit of 526 million yuan for the first half of 2024, standing out in a market where many other firms posted losses. Experts said that by June 2024, rooftop solar net-metering installations in LESCO’s service areas reached 500.2MW, representing about 15 percent of the current peak summer demand of approximately 3,500MW, reported a national daily.
This figure is higher than the national share of less than 2 percent in the overall peak power supply to the national grid. If standalone solar plants in residential, commercial, and industrial sectors are included, estimates suggest that solar power generation may surpass 20 percent of the total demand within LESCO’s coverage area. Several factors are driving the momentum in solar PV technology adoption, with 30,280 consumers in LESCO areas opting for solar net-metering. By June 2024, a total of 33,843 applications had been submitted for the installation of 542.3MW solar panels, and a substantial number had already been connected to the grid.
Quoting the latest data, they pointed out while the global PV market continued to expand, the Chinese solar sector struggled with declining profitability due to an oversupply and a mismatch between supply and demand, leading to price drops across key components like silicon materials, wafers, cells, and modules. Experts said that Pakistan’s solar energy contribution to its total power generation remains relatively small but growing. Solar energy accounts for around 1-2 percent of the total electricity generation in Pakistan. According to the National Electric Power Regulatory Authority (NEPRA) and other sources, Pakistan’s total installed capacity for solar energy was approximately 1,500MW.
However, Pakistan has ambitious plans to increase its reliance on renewable energy, including solar. Under the government’s Alternative and Renewable Energy (ARE) policy, Pakistan aims to have 30 percent of its total power generation from renewable sources (including wind, solar, and hydropower) by 2030, with solar energy expected to play a significant role in achieving this target.
