Pakistan imported nearly 15 gigawatts of solar panels worth $2.1 billion from China in the last fiscal year, as reported in a study titled Great solar eruption in Pakistan. The study indicated that high electricity tariffs, which have risen by 155 percent over the past three years, are pushing households and industries with high consumption towards solar energy solutions.
This shift has led to a 10.4% decline in demand on the electricity grid over the past year, with expectations of further decline. These trends underscore the need to modernize Pakistan’s grid and review demand forecasts to support decentralized power generation. Additionally, the continued decline in battery prices is expected to accelerate solar adoption, making urgent grid adaptation critical to maintaining the financial health of Pakistan’s utility model.
During the launch of the study on Thursday, analysts from global and local fields highlighted Pakistan’s rapid move towards solar energy as an “apparent solar dash” driven by rising energy costs, falling technology prices, and strong import momentum. Study by Renewable energy first It underscores Pakistan’s growing role in the field of renewable energy among developing countries, as pointed out by many experts at the event.
“Pakistan’s solar drive is truly impressive, but we’ve also seen these trends replicated in other emerging markets,” commented Jenny Chase, solar analyst at Bloomberg NEF. “What makes Pakistan unique is the rapid nature of these additions,” she added.
With imports of 27 GW since 2020, the Pakistani market is seen as of global importance, showing significant growth in the residential, industrial and agricultural sectors. On the issue of adapting grid infrastructure to support this growth, Syed Faizan Ali, member of the Prime Minister’s Solar Energy Committee, noted, “With strong policy alignment, we can harness this growth while addressing these operational challenges.”