Pakistan's $2.1 Billion Solar Rush: Power Tariff Hikes Drive Massive Shift to Renewable Energy

Pakistan has seen a surge in solar imports, bringing in $2.1 billion worth of solar panels, totaling around 15 GW from China in the past fiscal year, according to a study titled The Great Solar Rush in Pakistan. This shift is largely driven by a 155% increase in electricity tariffs over the past three years, which has prompted many high-usage households and industries to move towards solar energy.

The study, launched by Renewables First, highlights a 10.4% drop in grid electricity demand within the past year. Projections suggest that with continued solar adoption, grid modernisation and decentralised energy generation will become increasingly necessary. Falling battery prices are expected to further accelerate this solar adoption, pressuring the traditional utility model to adapt.

Global analysts, including Jenny Chase from Bloomberg NEF, have remarked on the speed of Pakistan’s solar shift, calling it a “solar rush” led by consumer demand. Since 2020, Pakistan has imported 27 GW worth of solar technology, making it the world’s 7th largest importer of Chinese solar panels, with 17 GW imported just in 2024.

Experts, including Syed Faizan Ali from the Prime Minister’s Solarisation Committee and Danny Kennedy, a cleantech entrepreneur, noted Pakistan’s people-led energy movement as a model that other countries like South Africa, Brazil, and Nigeria might emulate. They emphasized the need for strong policy alignment and grid adaptation to support this transformative shift. As battery prices decline, the study projects Pakistan's decentralised energy model to continue reshaping its energy landscape.