- Pakistan has become one of the world’s largest solar panel importers, with 13 gigawatts of panels imported in the first half of the fiscal year, now accounting for over 30% of the country’s power capacity.
- Rising electricity costs and a 90% drop in solar panel prices have driven the surge in solar adoption, supported by government policies like tax exemptions and net metering.
Pakistan has rapidly become one of the world’s leading solar markets as households and businesses seek relief from escalating electricity bills. Over the past two to three years, the country has seen a significant rise in solar panel imports, positioning it as one of the largest global importers.
According to the World Economic Forum, Pakistan imported 13 gigawatts of solar panels in the first half of the fiscal year, making it the third-largest importer of Chinese solar panels. This volume now accounts for over 30% of the country’s total power production capacity, reaching 46 gigawatts in 2023.
Soaring electricity costs primarily drive Pakistan’s growing demand for solar energy. As electricity bills continue rising, households and businesses are turning to solar power as an affordable alternative.
In addition, a 90% drop in solar panel prices over the last decade has made solar energy much more accessible for the average consumer. Government policies, including removing the 17% sales tax on solar panels and introducing net metering, have further accelerated the adoption of solar energy.
Pakistan’s electricity costs have been a significant concern, with experts attributing the high prices to poor agreements with Independent Power Producers (IPPs). The Institute for Energy Economics and Financial Analysis revealed that Pakistan paid approximately PKR 6 trillion (about $21.5 billion) in capacity payments from 2019-2020 to 2023-2024, a significant factor exacerbating the affordability crisis.
Solar energy offers a promising solution to Pakistan’s power challenges, providing economic and environmental benefits. With the rapid increase in solar panel imports and continued government support, the country is on track to boost its solar energy capacity further and reduce its reliance on costly conventional power sources.
As the demand for alternative energy continues to rise, Pakistan’s solar market is expected to play an increasingly pivotal role in addressing the country’s energy needs and mitigating the impacts of increasing electricity costs.