Pakistan’s Rooftop Solar Boom Disrupts National Grid Amid Energy Crisis

By AFP | Updated: July 16, 2025

KARACHI — As Pakistan struggles with an ongoing power crisis, citizens across the country are increasingly turning to rooftop solar panels as a reliable alternative to the unstable and costly national electricity grid. What began as a necessity for the wealthy has now spread to middle- and low-income households, triggering what many are calling “the great solar rush.”

Driven by high electricity costs, chronic power outages, and climate-related challenges, Pakistanis are embracing solar energy like never before. But this transition, while empowering for individuals, is placing an unexpected strain on the country’s energy sector, raising concerns within government and policy circles.

From Protest to Power: A Personal Story

In a cramped Karachi neighborhood, Fareeda Saleem’s home has become a local haven from the oppressive summer heat. Her modest two-room house is often crowded with neighbors — not for social visits, but to escape power outages plaguing the area. Thanks to her small rooftop solar system, Fareeda enjoys uninterrupted electricity, a rare luxury in a city where outages can last up to 18 hours a day.

“Solar makes life easier, but it’s a hard choice for people like us,” she told AFP.

Fareeda’s journey to energy independence wasn’t easy. After being disconnected from the grid last year for refusing to pay inflated bills during extended blackouts, the widowed mother of two disabled children made the difficult decision to sell her jewelry and borrow from relatives to install a basic solar setup for Rs180,000. Her sacrifice has transformed her household and inspired others in the community to consider solar power.

Nationwide Shift: Solar Energy on the Rise

Once a minor component in Pakistan’s energy mix, solar power now leads the way. In 2020, it accounted for less than 2% of electricity generation. Fast forward to 2024, and that figure rose to 10.3%, according to global energy think tank Ember. But the real breakthrough came in 2025 — in just the first five months, solar energy jumped to 24% of the total energy mix, surpassing gas, coal, nuclear, and even hydroelectric power.

This sudden growth has helped Pakistan move rapidly toward its 2030 goal of 60% renewable energy, something experts once considered overly ambitious.

“Pakistan is a leader in rooftop solar,” said Dave Jones, Chief Analyst at Ember.
“But the household solar boom was a response to a crisis, not the cause of it.”

What’s Fueling the ‘Great Solar Rush’?

Multiple factors have combined to create the perfect storm for Pakistan’s rooftop solar surge:

• Frequent Load Shedding: With routine blackouts ranging from 8 to 18 hours daily in some areas, many households simply cannot rely on the national grid.

• Soaring Energy Bills: Electricity prices have fluctuated wildly since 2022, reaching up to 155% increases in some regions. In many cases, monthly power bills now exceed rent, making the grid unaffordable for average families.

• IMF Pressure and Subsidy Cuts: The International Monetary Fund (IMF) has consistently pushed Pakistan to cut energy subsidies, forcing the government to raise prices and remove protections for vulnerable consumers.

• Affordability of Chinese Equipment: Most solar equipment in Pakistan is imported from China, where prices have fallen significantly due to overproduction and rapid technological innovation.

According to Muhammad Basit Ghauri, an energy expert at Renewables First, the solar boom was inevitable:

“This is not a top-down policy success. It’s a bottom-up rebellion against a broken, inefficient system.”

The Government’s Dilemma

While solar adoption empowers citizens, it has serious implications for the country’s fragile energy infrastructure.

Pakistan’s national grid is funded through electricity sales. As more households disconnect, the grid is losing paying customers — a problem that becomes more severe when those remaining are forced to pay higher rates to cover the shortfall.

Staggering Power Sector Debt

The government is already burdened with $8 billion in power sector debt. Much of this comes from importing expensive LNG and selling it at a loss. Additionally, the state is locked into long-term contracts with Independent Power Producers (IPPs) — including Chinese firms — that demand payments regardless of electricity usage.

A government report published in March 2025 warned that the solar boom is placing a “disproportionate financial burden on remaining grid users,” potentially leading to a death spiral for the national utility system.

According to the report:

• Electricity sales dropped by 2.8% year-on-year in June 2025.

• This marks the second consecutive year of decline.

• Solar consumers are now contributing less to grid maintenance, leaving others to pick up the cost.

New Policies Targeting Solar

In response to declining grid revenues, the government has recently introduced measures that disincentivize solar adoption:

• 10% Tax on Imported Solar Equipment: Effective last month, the tax raises costs for both businesses and households.

• Reduction in Net Metering Rates: The Ministry of Energy has proposed slashing the rate at which the government buys back excess electricity from solar households, a move likely to discourage future installations.

“The tax is unfair,” said Hammad Noor, a safety wear manufacturer from Sialkot.
“It punishes small businesses more than big corporations. It’s the best business decision I made, and now they’re trying to reverse it.”

Noor installed a solar system in 2023, broke even within 18 months, and now saves Rs1 million per month in operating costs. However, converting his second factory will now cost Rs1.5 million more due to the new tax.

Grid Management Challenges

Another concern is that solar power cannot be stored indefinitely unless paired with costly battery systems. This creates surges in demand during evening hours, when solar production stops and users return to the grid for power.

“Substantial problems for the grid arise when too many users switch back at once,” said analyst Dave Jones.
“This wasn’t caused by solar. It’s a consequence of poor planning and decades of underinvestment.”

In other words, solar is not causing the crisis — it is exposing one that already existed.

Case Study: Businessman Breaks Free

Arsalan Arif, a Karachi-based catering entrepreneur, was spending nearly one-third of his income on electricity bills before switching to solar.

“I didn’t have a routine anymore — outages would constantly disrupt my business,” he said.
“Now I have freedom and certainty.”

Arif spent Rs1.4 million to install a 10-kilowatt solar system and says it was worth every rupee.

Like many others, he now fears that government policies may force him to rethink future investments in solar, especially if taxes and net metering cuts continue.

Public Sentiment: Disconnected from Leadership

For millions of Pakistanis, the adoption of solar energy has not been about sustainability or climate change. It has been a survival tactic in a system that often fails to deliver basic services.

“The government feels disconnected from the public,” said Hammad Noor.
“They want us to stay on a grid that doesn’t work, costs more, and gives nothing in return.”

Many experts believe that rather than discouraging solar adoption, the government should be focusing on grid modernization, smart storage solutions, and flexible pricing models to create a more balanced energy ecosystem.

Looking Ahead: What Needs to Change

As Pakistan’s energy landscape rapidly transforms, several steps are needed to ensure sustainability for both solar adopters and the national grid:

1. Upgrade Infrastructure: The grid must be modernized to handle decentralized energy inputs and evening demand surges.

2. Promote Battery Storage: Incentives for affordable home and business storage solutions could ease pressure on the grid.

3. Policy Stability: Frequent tax changes and tariff revisions discourage long-term investment in clean energy.

4. Equitable Tariff Structures: Net metering should reflect market realities but still reward consumers for going green.

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No Record of 40,000 Zaireen who Didn’t Return from Iraq, Iran, Syria: Minister

Raed This Article

_______________________________________________________________________

Conclusion

Pakistan’s rooftop solar revolution reflects the resilience and ingenuity of its people. Faced with power cuts, unaffordable bills, and bureaucratic inefficiency, citizens are taking matters into their own hands — and reshaping the country’s energy future in the process.

But unless the government can align its policies with this new reality, Pakistan risks undermining one of its few success stories in the battle against energy poverty and climate vulnerability.

Pakistan’s Rooftop Solar Boom Disrupts National Grid Amid Energy Crisis

By AFP | Updated: July 16, 2025

KARACHI — As Pakistan struggles with an ongoing power crisis, citizens across the country are increasingly turning to rooftop solar panels as a reliable alternative to the unstable and costly national electricity grid. What began as a necessity for the wealthy has now spread to middle- and low-income households, triggering what many are calling “the great solar rush.”

Driven by high electricity costs, chronic power outages, and climate-related challenges, Pakistanis are embracing solar energy like never before. But this transition, while empowering for individuals, is placing an unexpected strain on the country’s energy sector, raising concerns within government and policy circles.

From Protest to Power: A Personal Story

In a cramped Karachi neighborhood, Fareeda Saleem’s home has become a local haven from the oppressive summer heat. Her modest two-room house is often crowded with neighbors — not for social visits, but to escape power outages plaguing the area. Thanks to her small rooftop solar system, Fareeda enjoys uninterrupted electricity, a rare luxury in a city where outages can last up to 18 hours a day.

“Solar makes life easier, but it’s a hard choice for people like us,” she told AFP.

Fareeda’s journey to energy independence wasn’t easy. After being disconnected from the grid last year for refusing to pay inflated bills during extended blackouts, the widowed mother of two disabled children made the difficult decision to sell her jewelry and borrow from relatives to install a basic solar setup for Rs180,000. Her sacrifice has transformed her household and inspired others in the community to consider solar power.

Nationwide Shift: Solar Energy on the Rise

Once a minor component in Pakistan’s energy mix, solar power now leads the way. In 2020, it accounted for less than 2% of electricity generation. Fast forward to 2024, and that figure rose to 10.3%, according to global energy think tank Ember. But the real breakthrough came in 2025 — in just the first five months, solar energy jumped to 24% of the total energy mix, surpassing gas, coal, nuclear, and even hydroelectric power.

This sudden growth has helped Pakistan move rapidly toward its 2030 goal of 60% renewable energy, something experts once considered overly ambitious.

“Pakistan is a leader in rooftop solar,” said Dave Jones, Chief Analyst at Ember.
“But the household solar boom was a response to a crisis, not the cause of it.”

What’s Fueling the ‘Great Solar Rush’?

Multiple factors have combined to create the perfect storm for Pakistan’s rooftop solar surge:

• Frequent Load Shedding: With routine blackouts ranging from 8 to 18 hours daily in some areas, many households simply cannot rely on the national grid.

• Soaring Energy Bills: Electricity prices have fluctuated wildly since 2022, reaching up to 155% increases in some regions. In many cases, monthly power bills now exceed rent, making the grid unaffordable for average families.

• IMF Pressure and Subsidy Cuts: The International Monetary Fund (IMF) has consistently pushed Pakistan to cut energy subsidies, forcing the government to raise prices and remove protections for vulnerable consumers.

• Affordability of Chinese Equipment: Most solar equipment in Pakistan is imported from China, where prices have fallen significantly due to overproduction and rapid technological innovation.

According to Muhammad Basit Ghauri, an energy expert at Renewables First, the solar boom was inevitable:

“This is not a top-down policy success. It’s a bottom-up rebellion against a broken, inefficient system.”

The Government’s Dilemma

While solar adoption empowers citizens, it has serious implications for the country’s fragile energy infrastructure.

Pakistan’s national grid is funded through electricity sales. As more households disconnect, the grid is losing paying customers — a problem that becomes more severe when those remaining are forced to pay higher rates to cover the shortfall.

Staggering Power Sector Debt

The government is already burdened with $8 billion in power sector debt. Much of this comes from importing expensive LNG and selling it at a loss. Additionally, the state is locked into long-term contracts with Independent Power Producers (IPPs) — including Chinese firms — that demand payments regardless of electricity usage.

A government report published in March 2025 warned that the solar boom is placing a “disproportionate financial burden on remaining grid users,” potentially leading to a death spiral for the national utility system.

According to the report:

• Electricity sales dropped by 2.8% year-on-year in June 2025.

• This marks the second consecutive year of decline.

• Solar consumers are now contributing less to grid maintenance, leaving others to pick up the cost.

New Policies Targeting Solar

In response to declining grid revenues, the government has recently introduced measures that disincentivize solar adoption:

• 10% Tax on Imported Solar Equipment: Effective last month, the tax raises costs for both businesses and households.

• Reduction in Net Metering Rates: The Ministry of Energy has proposed slashing the rate at which the government buys back excess electricity from solar households, a move likely to discourage future installations.

“The tax is unfair,” said Hammad Noor, a safety wear manufacturer from Sialkot.
“It punishes small businesses more than big corporations. It’s the best business decision I made, and now they’re trying to reverse it.”

Noor installed a solar system in 2023, broke even within 18 months, and now saves Rs1 million per month in operating costs. However, converting his second factory will now cost Rs1.5 million more due to the new tax.

Grid Management Challenges

Another concern is that solar power cannot be stored indefinitely unless paired with costly battery systems. This creates surges in demand during evening hours, when solar production stops and users return to the grid for power.

“Substantial problems for the grid arise when too many users switch back at once,” said analyst Dave Jones.
“This wasn’t caused by solar. It’s a consequence of poor planning and decades of underinvestment.”

In other words, solar is not causing the crisis — it is exposing one that already existed.

Case Study: Businessman Breaks Free

Arsalan Arif, a Karachi-based catering entrepreneur, was spending nearly one-third of his income on electricity bills before switching to solar.

“I didn’t have a routine anymore — outages would constantly disrupt my business,” he said.
“Now I have freedom and certainty.”

Arif spent Rs1.4 million to install a 10-kilowatt solar system and says it was worth every rupee.

Like many others, he now fears that government policies may force him to rethink future investments in solar, especially if taxes and net metering cuts continue.

Public Sentiment: Disconnected from Leadership

For millions of Pakistanis, the adoption of solar energy has not been about sustainability or climate change. It has been a survival tactic in a system that often fails to deliver basic services.

“The government feels disconnected from the public,” said Hammad Noor.
“They want us to stay on a grid that doesn’t work, costs more, and gives nothing in return.”

Many experts believe that rather than discouraging solar adoption, the government should be focusing on grid modernization, smart storage solutions, and flexible pricing models to create a more balanced energy ecosystem.

Looking Ahead: What Needs to Change

As Pakistan’s energy landscape rapidly transforms, several steps are needed to ensure sustainability for both solar adopters and the national grid:

1. Upgrade Infrastructure: The grid must be modernized to handle decentralized energy inputs and evening demand surges.

2. Promote Battery Storage: Incentives for affordable home and business storage solutions could ease pressure on the grid.

3. Policy Stability: Frequent tax changes and tariff revisions discourage long-term investment in clean energy.

4. Equitable Tariff Structures: Net metering should reflect market realities but still reward consumers for going green.

---

Conclusion

Pakistan’s rooftop solar revolution reflects the resilience and ingenuity of its people. Faced with power cuts, unaffordable bills, and bureaucratic inefficiency, citizens are taking matters into their own hands — and reshaping the country’s energy future in the process.

But unless the government can align its policies with this new reality, Pakistan risks undermining one of its few success stories in the battle against energy poverty and climate vulnerability.