ISLAMABAD: Amid soaring electricity prices, Pakistan has positioned itself as a global leader in solar energy, becoming the third-largest importer of Chinese solar panels. The country imported 13 gigawatts of solar panels in the first half of the current fiscal year, as reported by the World Economic Forum.
This surge has brought solar energy to over 30% of Pakistan’s total power production capacity, which reached 46 gigawatts in 2023. Experts cite high electricity costs and the declining price of solar panels—down by 90% over the last decade—as key drivers of this rapid growth.
Government initiatives, including the removal of a 17% sales tax on solar equipment and the introduction of net metering, have further incentivized the shift to renewable energy.
Pakistan’s electricity woes stem largely from costly agreements with Independent Power Producers (IPPs), resulting in PKR 6 trillion ($21.5 billion) in capacity payments from 2019 to 2024. The growing adoption of solar energy offers a promising alternative to reduce dependence on traditional power sources.