Thousands of small businesses and households are installing solar electricity systems ahead of the summer months
M |
uhammad Imran, a 26-year-old entrepreneur in Charsadda, stands beside his two flour grinding machines, watching the millstones spin under the midday sun.
18-hours-a-day power outages and expensive diesel generators had once threatened the viability of his business. Today he has an uninterrupted power supply.
Last year, Imran had invested Rs 2.5 million in a 24-kilo-volt rooftop solar system.
“The commercial electricity tariffs have become unaffordable,” he says. “Those who can afford it are trying to switch to solar. It’s a one-time investment for 20 years.”
Across Khyber Pakhtunkhwa and beyond, thousands of small businesses and households are making the same reckoning. With power shortages worsening, grid electricity becoming more expensive and Chinese solar panels flooding the market at lower prices, Pakistanis – especially in rural areas – are taking energy supply into their own hands.
This shift to solar energy has not been driven by some government policy. It has been mostly on account of necessity.
Like Imran, millions of consumers in Pakistan lack a reliable power supply.
For many rural consumers, dependence on state-sponsored electricity supply is no longer an option. Tariffs set by the National Electric Power Regulatory Authority (NEPRA) continue to rise. The circular debt in the power sector – fuelled by inefficient subsidies and expensive long-term fossil-fuel contracts – has made grid electricity more expensive than ever. In many areas, power cuts last so long that even those who can afford electricity often receive little of it.
This has resulted in what many are calling one of the largest solar energy transitions in the world. Experts say Pakistan needs international support to boost this transition.
“Pakistan’s ambitious strides towards a sustainable energy transition, notably in solar power and electric mobility, deserve recognition,” says Harjeet Singh, a strategic advisor for the Fossil Fuel Non-Proliferation Treaty Initiative.
But he adds “it is imperative that wealthy nations with large historical emissions fulfill their obligations by bolstering these efforts through robust international cooperation and support. This is crucial to ensure that countries like Pakistan are not left behind”.
In December 2024, the country signed the Fossil Fuel Non-Proliferation Treaty, becoming the first South Asian nation to do so. This treaty seeks to phase out fossil fuels and transition to renewable energy, particularly solar power, with support from developing nations.
However, on the ground, the energy transition remains largely a self-funded, market-driven phenomenon, with little structured government support for individual consumers.
KP has emerged as a key hub for Pakistan’s solar transition. Entire markets in Peshawar and Mardan are now dedicated to solar panels, inverters and batteries. The Mardan Bypass in particular is bustling with activity. Buyers load solar panels onto mini-buses and motorbike carriers and shopkeepers struggle to keep up with the demand.
Masood Shah, a customer from Mardan, installed a 5KV off-grid solar inverter last year. He is now upgrading it to an 8-KV hybrid system.
“The prices are reasonable and I no longer have to worry about power outages,” he says.
Khyber Pakhtunkhwa has emerged as a key hub for Pakistan’s solar transition. Entire markets in Peshawar and Mardan are now dedicated to selling solar panels, inverters and batteries.
China’s aggressive push into Pakistan’s solar energy market has made the transition easier. With intense competition among manufacturers, panel prices have dropped significantly. The local assembly of inverters and battery storage systems has strengthened Pakistan’s solar ecosystem. Yet, a major affordability gap remains. Despite government concessions on solar panel imports, low-income families lack the purchasing power.
Neelam Bibi, a mother of six from rural Khyber Pakhtunkhwa, says she has been planning for two years to install a rooftop solar system. However, even as panel prices have declined, the cost of batteries and inverters remains out of reach for her family.
“Four solar panels would be enough for us. However, we don’t have the money,” she says.
Many families like Neelam’s are looking to government schemes for help. So far, assistance has been limited.
Last year, the KP government launched a Rs 55 billion solar project to transition 130,000 low-income households to solar, prioritising high-load-shedding areas.
In addition to household solarisation, five private solar projects of 249 MW in Dera Ismail Khan, Kohat and Nowshera are in the pipeline. The provincial government has also solarised 8,000 public schools and 4,000 mosques. Still more projects are in the pipeline.
However, experts say that one-time solarisation projects alone won’t be enough. According to Ebipere Clark, a visiting fellow with the African Policy and Research Institute, governments need to focus on financing solutions rather than just reducing solar panel prices.
“Currently, in terms of affordability, batteries and inverters present the real challenge. If governments can provide low-interest loans or installment plans, more people can afford to make the switch. The key is ensuring that solar is not just for those who can pay upfront, but for everyone. They should be allowed to pay when they can,” he says.
Countries like India and Bangladesh have successfully expanded solar power access through micro-financing, government-backed loans and subsidies for battery storage. If similar policies are introduced in Pakistan, millions of households could transition to solar power, easing pressure on the grid while improving energy access in rural areas.
Governments have taken some steps to support renewable energy, such as zero-rating imports of raw materials for solar panels, inverters and lithium-ion batteries in June 2024. However, large-scale projects remain stalled and subsidies or financing options for households remain scarce.
In Khyber Pakhtunkhwa, five private sector solar projects are in the pipeline. However, the province lacks a dedicated grid for those.
“Governments must prioritise favourable environment for private sector investment. It should allocate resources to integrate clean energy into national grids,” says Manjeet Dhakal of Climate Analytics South Asia.
“Batteries are more critical than ever,” says Clark. “Solar panels will keep getting cheaper. The real challenge to affordability is the cost of energy storage.”
Pakistan’s battery market is growing, but high the costs remain a challenge. Experts say subsidies could help more households store power, reducing grid dependence.
“Countries transitioning to solar should look beyond simply importing batteries. They should also consider investing in recycling and refurbishing batteries to build a sustainable and circular energy storage ecosystem,” says Clark.
Despite the challenges, Pakistan is one of the fastest-growing solar markets in Asia, with an estimated 22 gigawatts of solar panels imported in 2024 alone. The country’s vast sunlight potential and the need for energy independence for its teeming millions makes solar an increasingly attractive option.
The writer is a multimedia producer. He tweets @daudpasaney