As of early 2024, Pakistan’s installed solar power capacity was approximately 882 megawatts (MW), accounting for about 1.9% of the country’s total installed power generation capacity.⁵

As of now, Pakistan does not have a significant domestic solar panel manufacturing industry. The country relies heavily on imports to meet its solar energy needs, with over 13 gigawatts (GW) of solar modules imported from China in the first half of 2024 alone. However, there are projections for the expansion of solar energy capacity in Pakistan—anticipating an increase of to 5,000 megawatts (MW) by 2025, and an increase of 30% by 2030.⁶

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Coal: Coal-based power generation has been a focus under the China-Pakistan Economic Corridor (CPEC). The levelized cost of electricity (LCOE) for coal plants is approximately $0.045 per kWh. When accounting for environmental costs, this increases to about $0.059 per kWh.

Natural Gas: Natural gas-fired power plants have an LCOE of around $0.035 per kWh. Including environmental costs, the total cost rises to approximately $0.041 per kWh.

Residual Fuel Oil (RFO): RFO-based electricity generation is among the most expensive, with an LCOE of about $0.070 per kWh, increasing to $0.080 per kWh when environmental costs are considered.

Renewable Energy (Solar and Wind): The global average cost of electricity from utility-scale solar photovoltaic (PV) is approximately $0.044 per kWh, and for onshore wind, it’s about $0.033 per kWh. While specific figures for Pakistan may vary, these global averages suggest that renewables are becoming increasingly cost-competitive.

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Natural Gas: In 2023, natural gas was the most utilized source for electricity production in Pakistan, accounting for about 34% of total generation.

Hydropower: Hydropower contributed to almost 24% of the electricity generation mix in 2023.

Coal: Coal accounted for approximately 14% of the electricity generation in 2023.

Nuclear: Nuclear energy made up about 14% of the total electricity generation in 2023.

Renewable Energy (Wind and Solar): Wind and solar energy contributed to 1.5% and 0.6% of the electricity generation mix, respectively, in 2023.

The average daily availability of electricity from Pakistan’s national grid varies across regions and is influenced by factors such as infrastructure, demand, and load-shedding practices. On average, households experience approximately 2.97 hours of load-shedding per day, indicating that electricity is available for about 21 hours daily.⁹

Pakistan has experienced a significant surge in residential solar panel installations in recent years, driven by high electricity costs and an unreliable power grid. In the first half of 2024 alone, the country imported approximately 13 gigawatts (GW) of solar panels, primarily from China, with a substantial portion designated for rooftop installations in homes and businesses. Provincial initiatives have further accelerated this growth. For instance, in July 2024, Sindh Province announced plans to promote 200,000 residential solar systems, focusing on low-income households, by offering an 80% subsidy to make solar energy more accessible.¹⁰

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Installed:  Pakistan has a total installed power generation capacity of 46,035 MW as of 31 January 2024 which includes 28,811 MW thermal, 10,635 MW hydroelectric, 1,838 MW wind, 882 MW solar, 249 MW bagasse and 3,620 MW nuclear.

Projected: Pakistan continues to pursue ambitious plans to enhance its solar energy infrastructure. While specific numbers of projected solar farms are not readily available, the government’s renewable energy policies aim to increase the share of solar power in the energy mix. For example, the Sindh Solar Energy Project, funded by the World Bank, aims to develop utility-scale solar projects, among other initiatives.

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Current Off-Grid Market Demand:

A substantial portion of these imports has been utilized for off-grid applications, particularly in residential and industrial sectors seeking energy independence and cost savings. The exact percentage allocated to off-grid versus grid-tied systems is not specified, but the trend indicates a significant uptake in off-grid installations.

Projected Off-Grid Market Demand:

Projections suggest that Pakistan’s total solar capacity could reach between 22 GW and 27 GW by the end of 2024, with a considerable share expected from residential and industrial sectors. This growth implies a continued and robust demand for off-grid solar solutions, especially in areas with unreliable grid access or higher electricity tariffs.

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Current On-Grid Market Demand:

Net-Metered Installations: Since 2022, net-metered solar PV installations have nearly doubled, reaching 764 MW in 2023. This upward trend continued in the first half of 2024, with an additional 450 MW of rooftop solar capacity added to the grid.

Imports: In the first half of 2024, Pakistan imported approximately 13 GW of solar panels, primarily for rooftop installations in homes and businesses.

Projected On-Grid Market Demand:

Capacity Targets: Projections suggest that Pakistan’s solar power capacity could increase to 10 GW by 2025 and 20 GW by 2030.

Government Initiatives: In August 2023, the government announced a new solar PV auction plan to deploy 9 GW of solar PV power, including 6 GW of large-scale projects, 2 GW of medium-scale projects, and 1 GW of rooftop solar capacity.

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Average monthly income of workers in the solar industry (labor cost) in pakistan

The average monthly income for solar industry workers in Pakistan varies depending on the specific role and location. For solar installers, the average salary is around $513.96 per month. However, this can range from $86.60 to $267.60 per month depending on experience and location.

As of January 1, 2025, the population of Pakistan is approximately 255,219,554. Pakistan ranks as the 5th most populous country in the world.¹⁷

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Rent and Mortgage

Rent: The average rent for a one-bedroom apartment in the city center is around 112 USD per month, while a three-bedroom apartment costs about 244 USD per month.

Mortgage: The average apartment price in the city center is 655 USD per square meter, and in the suburbs, it’s 509 USD per square meter.

Labor Cost

Average Salary: The average monthly salary in Pakistan ranges from  82 USD to 98 USD for entry-level to mid-career professionals. Skilled professionals like engineers and IT experts can earn significantly more.

Utilities

Utilities: The average monthly utility bill for one person is around 56 USD, and for a family, it’s about 86 USD. This includes electricity, heating, and water.

Maintenance Cost

Maintenance: Maintenance costs can vary widely depending on the type of property and its condition. It’s best to budget around 5-10% of the property’s value annually for maintenance and repairs.

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Energy Mix

Fossil Fuels: Pakistan relies heavily on fossil fuels, including natural gas, oil, and coal. The country has been working to diversify its energy mix to reduce dependency on these sources.

Renewable Energy: There is a growing emphasis on renewable energy sources, such as solar and wind power, to reduce carbon emissions and promote sustainable development.

Key Projects

China-Pakistan Economic Corridor (CPEC): This initiative includes several energy projects aimed at increasing and diversifying generation capacity. It also aims to strengthen trade between China, Pakistan, and the Middle East2.

Regasified Liquefied Natural Gas (RLNG): The RLNG supply chain has been a significant addition to Pakistan’s energy mix, serving power plants, fertilizer plants, and the industrial sector.

Transmission and Distribution: Projects like the ±660 KV HVDC Transmission Line from Matiari to Lahore have enhanced grid infrastructure. However, distribution infrastructure still faces challenges such as overloading and transformer issues.

Challenges

Supply-Demand Deficit: Pakistan has faced significant energy shortfalls, with a peak deficit of 66,201 MW in 2012. Efforts have been made to add capacity, but challenges remain.

Infrastructure Upgrades: Upgrading supply chain networks for electricity, gas, and oil is crucial for improving efficiency and reliability.

Future Plans

Advanced Metering Infrastructure (AMI): This project aims to curb losses and overloading issues at the distribution value chain.

Rationalizing Subsidies: Adjusting subsidies and prices to ensure efficient utilization of resources is a key focus.

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10-Year Solar Panel Manufacturing Policy: This policy provides incentives for local manufacturing, including tariff exemptions on raw materials and machinery, and imposing tariffs on imported finished goods to encourage local production.

Private Power and Infrastructure Board (PPIB) Amendment Act, 2023: This act merged the Alternative Energy Development Board (AEDB) with PPIB to streamline efforts in the renewable energy sector and facilitate private investment.

Framework Guidelines for Fast Track Solar PV Initiatives: These guidelines aim to substitute expensive imported fossil fuels with solar PV energy, promote solarization of public sector buildings, and ensure regulatory compliance for solar power projects.

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10-Year Solar Panel Manufacturing Policy: This policy provides incentives for local manufacturing, including tariff exemptions on raw materials and machinery, and imposing tariffs on imported finished goods to encourage local production.

Subsidies for Farmers: The Punjab government offers a substantial subsidy program specifically for farmers. This program provides up to 75% cost-sharing for installing solar-powered water pumping systems on farms up to 7.5 acres, with a decreasing subsidy rate for larger landholdings.

Tax Reductions and Exemptions: The government offers various tax benefits for individuals and businesses investing in solar power. These include income tax exemptions on import duty and sales tax on solar panels, inverters, and other related equipment.

SBP Financing Scheme for Renewable Energy: The State Bank of Pakistan offers a financing scheme to facilitate the installation of renewable energy projects, including solar power. This scheme provides loans at competitive interest rates to individuals, businesses, and SMEs looking to invest in solar power solutions.

Net Metering: The National Electric Power Regulatory Authority (NEPRA) introduced net metering regulations, allowing homeowners with rooftop solar panels to connect their systems to the national grid and receive credits for any excess electricity generated. These credits can be used to offset their electricity bills.

Additional Initiatives

Solarization of Public Sector Buildings: The government aims to promote the solarization of public sector buildings through various initiatives, including leasing models and own-cost models.

Fast Track Solar PV Initiatives: These guidelines aim to substitute expensive imported fossil fuels with solar PV energy, promote solarization of public sector buildings, and ensure regulatory compliance for solar power projects.

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Installed Projects

Quaid-e-Azam Solar Park: Located in Punjab, this is one of the largest solar power plants in Pakistan with a capacity of 400 MW. It was commissioned in 2015.

Best Green Energy Pakistan Limited Solar PV Park: This 100 MW solar PV project is also located in Punjab and was commissioned in 2016.

Apollo Solar Development Pakistan Limited Solar PV Park: Another 100 MW project in Punjab, commissioned in 2016.

Crest Energy Pakistan Limited Solar PV Park: This 100 MW project, developed by ZTE Energy, came online in 2016.

British International Investment Atlas Solar PV Park: This 100 MW project has been operational since 2022 and is located in Punjab.

Projected Projects

Expansion of Quaid-e-Azam Solar Park: Plans are underway to expand the capacity of the Quaid-e-Azam Solar Park to 1,000 MW.

New Solar Projects by Provincial Governments: Both Punjab and Sindh provincial governments have announced policies to provide free or subsidized solar panels to low-income residents, aiming to reduce electricity costs and increase solar adoption.

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Reon Energy Limited

Karachi, Pakistan

Established in 2012, Reon Energy Limited is a leading solar solutions provider focusing on industrial and commercial sectors. They have implemented large-scale projects, contributing significantly to Pakistan’s renewable energy capacity.

SkyElectric

Islamabad, Pakistan

Founded in 2015, SkyElectric specializes in smart solar energy systems, offering advanced solutions with real-time monitoring and energy management for residential and commercial users.

Premier Energy (Pvt) Limited

Lahore, Pakistan

Established in 2013, Premier Energy provides a range of solar solutions for residential, commercial, and industrial clients, specializing in the installation of solar panels, inverters, and batteries.

Pantera Energy Limited

Islamabad, Pakistan

Founded in 2013, Pantera Energy offers reliable and cost-effective solar solutions, including on-grid, off-grid, and hybrid systems, catering to a diverse clientele.

Zonergy

Islamabad, Pakistan

Zonergy is involved in large-scale solar projects, contributing to Pakistan’s renewable energy capacity through the development and management of solar power plants.

Alpha Renewables (SMC-Pvt) Ltd

Lahore, Pakistan

Alpha Renewables provides custom solar energy solutions, including on-grid, off-grid, and hybrid systems, focusing on renewable energy accessibility.

Shams Power Limited

Lahore, Pakistan

Shams Power offers solar power solutions for commercial and industrial sectors, providing end-to-end services from design to maintenance.

Yellow Door Energy

Lahore, Pakistan

Yellow Door Energy specializes in solar energy solutions for businesses, aiming to reduce energy costs and carbon footprints.