Solar energy has emerged as a game-changer in Pakistan, helping eliminate long hours of load shedding and reducing reliance on expensive fuel imports.
However, rising solar panel prices -- linked to policy shifts and IMF conditions -- are now raising concerns about the future of alternative energy adoption.
Solar panel net metering and off-grid solar systems have become a major source of relief for Pakistan’s energy crisis, rather than a burden on the national grid.
Until a few years ago, Pakistan regularly faced 12 to 14 hours of daily load shedding. Today, solar power has made it possible to eliminate these outages in many areas, significantly improving electricity access.
At the same time, reliance on expensive furnace oil, diesel, imported LNG and coal-fired power plants has declined, easing pressure on electricity generation costs.
Billions invested as solar capacity surges
According to reports, Pakistan has imported around $12 billion worth of solar panels over the past eight years, reflecting a rapid shift toward renewable energy.
Data from the National Electric Power Regulatory Authority shows that electricity generation through solar net metering has reached 6,500 megawatts.
Meanwhile, off-grid solar systems have added more than 12,000 megawatts of electricity, playing a crucial role in reducing load shedding and supporting households and businesses.
Rising electricity costs drive solar adoption
The shift toward solar energy has been fueled by soaring electricity prices. According to the Competition Commission of Pakistan, electricity costs have increased by 155% over the past three years.
This surge is largely due to rising capacity payments, fuel costs and the depreciation of the Pakistani rupee. As a result, more consumers have turned to solar energy as a cost-effective alternative.
Despite its success, solar energy is now facing new challenges. As electricity sales from the national grid declined and capacity payment issues grew, the government introduced changes to the net metering policy.
These included revising the buyback rate and introducing a national average tariff formula for new solar consumers.
At the same time, the withdrawal of import subsidies has led to an increase in solar panel prices. The government is also considering imposing sales tax on solar panels as part of conditions linked to the International Monetary Fund programme.
Experts warn that these measures could further drive up costs and slow the adoption of solar technology.
Experts urge tax relief and policy support
Energy experts are calling on the government to remove solar technology from the tax net and provide incentives to encourage wider adoption.
Dr Khalid Waleed emphasized the need for policy support, suggesting that solar panels should remain tax-free in the next budget and that previous net metering incentives should be restored.
He also proposed expanding access to solar systems for low-income households, noting that this would reduce electricity subsidies and accelerate Pakistan’s transition to clean energy.
Experts also see potential for Pakistan to develop a domestic solar manufacturing industry through indigenization.
According to Dr Khalid Waleed, local production of solar panels could create a new industrial sector while helping manage peak electricity demand, especially during evening hours.
Such measures could strengthen the national grid and reduce dependence on imported energy solutions.
Risk of solar becoming unaffordable
While solar energy has helped stabilize Pakistan’s power sector, rising prices could make it inaccessible for many consumers.
Experts warn that if taxes are imposed and costs continue to rise, alternative energy could move out of reach for the general public—undermining years of progress in tackling the energy crisis.
Pakistan now faces a crucial policy choice: sustain the momentum of solar adoption or risk slowing it through higher costs and reduced incentives.
With solar energy already playing a key role in reducing outages, lowering fuel imports and supporting clean energy goals, future decisions will determine whether this progress can be maintained.
.jpg)
