Pakistan has quickly become one of the world’s largest markets for solar energy, achieving this status in just two to three years.

According to the World Economic Forum, Pakistan imported 13 gigawatts of solar panels in the first half of the current fiscal year, ranking it as the third-largest importer of Chinese solar panels globally.

This surge in imports has significantly advanced Pakistan’s renewable energy sector.

Solar panels now contribute to over 30% of the country’s total energy production, which reached 46 gigawatts in 2023.

The rapid growth is driven by rising demand from households and businesses looking to cut down on high electricity costs.

Additionally, a 90% reduction in solar panel prices over the past decade has accelerated the country’s adoption of solar power.

Government policies have also played a crucial role. The elimination of a 17% sales tax and the introduction of net metering have further encouraged the transition to solar energy.

Soaring electricity prices, partly due to costly agreements with Independent Power Producers (IPPs), have highlighted the need for alternative energy solutions.

Between 2019 and 2023, Pakistan paid 6 trillion rupees ($21.5 billion) in capacity charges, according to the Institute for Energy Economics and Financial Analysis.

The shift to solar energy has reduced economic burdens caused by reliance on imported coal, improved energy security, created jobs, attracted foreign investment, and supported environmental sustainability.