Pakistan\’s quiet solar boom strains the grid

Pakistan’s Rooftop Solar Surge

Across Pakistan’s cities, households are abandoning the national grid in favor of rooftop solar panels. This quiet revolution has moved beyond affluent neighborhoods, reaching middle‑ and lower‑income families who can no longer tolerate sky‑high electricity bills and frequent power outages.

Daily Life Powered by Solar

In the cramped alleys of Karachi, residents gather at the modest home of Fareeda Saleem. While the city endures relentless summer heat, Saleem’s solar system delivers uninterrupted power—a privilege none of her neighbors have experienced before.

• Saleem’s installation cost ranged from 180,000 rupees ($630) for two panels, a inverter, and a battery.
• She sold her jewelry and borrowed from relatives to fund the system after being cut from the grid last year for refusing to pay ongoing bills amid 18‑hour outages.
• People in her community now enjoy air‑conditioned comfort even as temperatures soar above 104 °F.

The Adoption Momentum

By 2025, solar rooftops now make up more than 24 % of Pakistan’s energy mix, outpacing traditional sources such as gas, coal, nuclear, and hydropower. This milestone marks the first time solar has become the country’s largest single source of electricity.

• Solar’s share in the energy mix grew from <2 % in 2020 to 10.3 % in 2024.
• Installation costs typically amortize in two to five years, encouraging rapid uptake.
• Pakistan imports most of its solar equipment from China, where costs have fallen sharply due to overcapacity and technological advances.

Economic and Policy Challenges

While the private sector embraces solar, the government faces mounting challenges:

• Pakistan holds $8 billion of power‑sector debt, strained by falling grid customer numbers.
• High gas import costs and fixed contracts with independent producers add to fiscal pressure.
• In March, a report cited a “disproportionate financial burden” on grid consumers, leading to higher tariffs and undermining sector sustainability.
• Recent policy moves include a 10 % import tax on solar equipment and proposed rate reductions on surplus solar energy bought by utilities.

Success Stories and Trade‑Offs

Business owners are now turning solar into strategic assets:

• Arsalan Arif opted for a 10‑kW solar kit costing roughly 1.4 million rupees ($4,900), freeing up a third of his income previously spent on power.
• Hammad Noor of Sialkot’s safety wear factory switched in 2023, breaking even in eighteen months and saving 1 million rupees monthly.
• New taxes on solar imports are seen as unfair, disproportionately affecting small to medium enterprises.

Looking Forward

The surge in rooftop solar, driven by consumer frustration with the grid’s inefficiency, demonstrates Pakistan’s potential to reach 60 % renewable energy by 2030. Yet, the country must balance this growing adoption with grid resilience and equitable policy frameworks to sustain long‑term energy security.