Rapid Growth in Pakistan’s Net-Metering Solar Capacity
An impressive surge has pushed Pakistan’s net-metering solar capacity past 4 GW. According to a report from the National Electric Power Regulatory Authority (NEPRA), 32% of this capacity was installed in 2024 alone, marking a year of remarkable progress for the country’s renewable energy sector.
This rapid growth is driven by proactive regulatory initiatives and growing consumer interest in sustainable energy solutions. NEPRA credits the expansion to the wider adoption of net-metering across commercial, industrial, and residential sectors.
To support this trend, NEPRA has rolled out several policies, including a competitive bidding framework for renewable energy projects and a wheeling regime. These measures are designed to foster a conducive environment for renewable energy development.
Solar Adoption Trends Across Pakistan’s Consumer Sectors
Industrial consumers account for 67% of net-metering solar installations, followed by commercial users at 19% and residential customers at 14%. This trend highlights a significant shift towards solar energy adoption across different segments of the economy.
As part of its commitment to promoting renewables, NEPRA established a competitive bidding framework that provides clear guidelines for energy procurement. In addition, a wheeling regime introduced in 2021 facilitates the supply of renewable energy directly to bulk power consumers. This policy empowers producers to sell electricity to large customers directly, bypassing traditional distribution channels and encouraging more flexible energy distribution.
Net-Metering Solar’s Role in Pakistan’s Energy Mix
Despite this substantial increase in solar capacity, fossil fuels still dominate Pakistan’s energy mix. NEPRA reports that as of 2024, fossil fuels make up 63.1% of the total installed capacity, while renewables account for just 10.3%. However, the proportion of renewables is expected to grow as more projects come online.
In 2023, Pakistan’s total installed solar capacity stood at approximately 2.6 GW, with most of it integrated into the grid via net-metering. The International Renewable Energy Agency (IRENA) noted that the country added 1.2 GW of new solar capacity that year, underscoring the rapid expansion of solar power.
NEPRA emphasizes the critical role of renewable energy in reducing Pakistan’s dependency on imported fossil fuels. This reliance has led to high generation tariffs and an inflated circular debt. By increasing the share of renewables, Pakistan aims to lower energy costs and improve its energy security.
Future Prospects for Net-Metering Solar in Pakistan
The continued expansion of net-metering solar capacity in Pakistan points to a positive trajectory for the country’s renewable energy sector. With sustained regulatory support and growing consumer interest, the share of renewables in the nation’s energy mix is set to increase. This transition to clean energy will not only reduce the country’s dependence on fossil fuels but also contribute to a more sustainable energy future.
As Pakistan continues to build out its renewable energy infrastructure, the focus will likely remain on solar and wind projects. Given their potential to address the nation’s energy challenges, these technologies are expected to be pivotal in achieving Pakistan’s energy objectives. For more insights into Pakistan’s solar advancements, you can explore related articles on PVKnowhow.
