Pakistan has quickly grown to be a major solar market as people and companies there look for ways to reduce their skyrocketing electricity costs. Within two or three years, Pakistan has emerged as one of the world’s biggest importers of solar panels.
The World Economic Forum reports that Pakistan is the third-largest importer of Chinese solar panels, having purchased 13 gigawatts of solar panels in the first half of the current fiscal year. Over 30% of the nation’s 46 gigawatts of total power generation capacity in 2023 is presently derived from imported panels.
This change is mostly caused by the rising demand for alternative energy sources as a result of rising electricity prices. In addition, solar energy has become more affordable due to a 90% decrease in solar panel prices over the last ten years. Government initiatives like the introduction of net metering and the repeal of the 17% sales tax have further sped up the adoption of solar.
According to experts, careless contracts with Independent Power Producers (IPPs) are to blame for Pakistan’s expensive electricity. According to the Institute for Energy Economics and Financial Analysis, Pakistan’s capacity payments from 2019–20 to 2023–24 were PKR 6 trillion, or roughly $21.5 billion, which made the country’s energy affordability situation worse.
Solarisation is still gaining traction as a practical way to address Pakistan’s energy problems, offering advantages for the economy and the environment. Pakistan has quickly grown to be a major solar market as people and companies there look for ways to reduce their skyrocketing electricity costs. Within two or three years, Pakistan has emerged as one of the world’s biggest importers of solar panels.
The World Economic Forum reports that Pakistan is the third-largest importer of Chinese solar panels, having purchased 13 gigawatts of solar panels in the first half of the current fiscal year. Over 30% of the nation’s 46 gigawatts of total power generation capacity in 2023 is presently derived from imported panels.
This change is mostly caused by the rising demand for alternative energy sources as a result of rising electricity prices. In addition, solar energy has become more affordable due to a 90% decrease in solar panel prices over the last ten years. Government initiatives like the introduction of net metering and the repeal of the 17% sales tax have further sped up the adoption of solar.
According to experts, careless contracts with Independent Power Producers (IPPs) are to blame for Pakistan’s expensive electricity. According to the Institute for Energy Economics and Financial Analysis, Pakistan’s capacity payments from 2019–20 to 2023–24 were PKR 6 trillion, or roughly $21.5 billion, which made the country’s energy affordability situation worse.
Solarisation is still gaining traction as a practical way to address Pakistan’s energy problems, offering advantages for the economy and the environment.
