Pakistan’s growing shift towards solar energy is beginning to ease pressure on its strained economy, with savings on costly fuel imports reaching an estimated $12 billion in recent years.
A report by UK-based energy think tank Ember shows that solar power generation in the country has expanded sharply, rising from 7.7 terawatt hours in 2022 to 36.6 terawatt hours in 2025. This marks an average annual growth rate of around 68 percent, reflecting how quickly households and businesses are turning to solar solutions.
The report noted that solar energy has now become one of Pakistan’s leading sources of electricity, alongside hydropower and gas. As solar output increased, gas-based power generation dropped by about 9 percent over the same period, while coal usage remained largely unchanged.
The shift has also reduced the need for other fossil fuels by at least 37 percent. The actual decline could be even greater, as electricity produced through private diesel generators is not fully captured in official data but is expected to have fallen as well.
According to Ember, if the rise in electricity demand had been met through fossil fuels instead of solar, gas consumption could have increased by 15 percent. That scenario would have led to significantly higher LNG imports, underlining how solar adoption has helped the country avoid additional financial strain.
Rising tariffs drive rooftop solar adoption
The rapid growth in solar installations, particularly rooftop systems, has been driven by rising electricity costs and ongoing challenges in the power sector since 2020. Reforms linked to the IMF pushed tariffs higher, prompting many consumers to seek cheaper alternatives.
At the same time, supportive net metering policies and the availability of affordable solar panels from China made it easier for households and businesses to switch to solar power.
This transition has reduced Pakistan’s reliance on imported fuels at a time when global energy prices remain unpredictable. However, the report warned that falling demand for grid electricity could create new challenges.
With fewer consumers relying on the grid, fixed costs may be distributed among a smaller base, potentially pushing tariffs higher for those who remain connected.
Need to strengthen the power grid
The think tank stressed the importance of maintaining a financially stable power grid to support further growth in rooftop solar, especially as battery storage systems are not yet widely available.
Separately, Power Minister Awais Leghari said that around 55 percent of Pakistan’s electricity currently comes from clean sources. The government plans to increase this share to over 90 percent by 2034.
He added that about 74 percent of electricity generation now relies on local resources, with a target to push this figure above 96 percent over the same period.
