Peshawar - Khayam Khan, a 35-year-old resident of Nowshera, found relief from persistent power outages by installing a 10kW solar system on his house rooftop.
Previously enduring up to 18 hours of daily blackouts, Khayam resorted to taking out a loan to install solar panels to alleviate the situation for his family during extreme weather conditions. He shared with APP, "Now, we not only power all our household appliances, including air conditioners and refrigerators, but also generate surplus electricity that we sell to neighbors for profit."
Despite the initial substantial investment, Khayam noted that it quickly became cost-effective. His monthly electricity bills dropped dramatically from Rs. 40,000 to nearly zero. "It provides peace of mind. I feel like we have regained control over our electricity," he expressed, reflecting a growing trend of energy self-sufficiency in urban and semi-urban areas of Pakistan.
The transition towards solar power driven by consumers is gaining momentum in Khyber Pakhtunkhwa (KP). According to the Global Electricity Review 2025, Pakistan imported 17 GW of solar panels in 2024, doubling the volume imported in 2023, establishing the country as the largest global importer.
This shift is propelled by escalating electricity tariffs, unreliable grid power, environmental awareness, and the increased affordability of solar technologies.
While Pakistan historically relied on fossil fuels and hydropower for its energy mix, the federal government has initiated substantial reforms to diversify by promoting renewable energy sources.
Prof. Dr. Zilakat Malik, former Chairman of the Economics Department at the University of Peshawar, emphasized the necessity of diversification due to rising power consumption. He highlighted that solar energy, supported by advancements in technology and decreasing costs, presents a promising option for large-scale energy production in Pakistan.
Dr. Malik stressed the importance of the government focusing on solar, wind, coal, and other energy resources for economic growth. He outlined the economic benefits of solar power, including reduced production costs for industries, enhanced productivity, and decreased vulnerability to fluctuations in global energy prices.
The Renewable Energy (RE) Policy of 2006 laid the groundwork for Pakistan's renewable energy journey by encouraging private sector investment and introducing net-metering regulations in 2015.
As a result, over 302,409 net-metering connections have been established, with a combined generation capacity of 4,492 MW, as per NEPRA.
Under the National Electricity Policy 2021 and National Electricity Plan 2023–27, the government aims to achieve 60% of electricity generation from indigenous clean energy sources by 2030.
Khyber Pakhtunkhwa is leading significant solarization projects. Engr. Tariq Sadozai, former Adviser to the Chief Minister on Energy, disclosed that two mega projects worth Rs. 55 billion are in progress.
These projects include the solarization of 13,000 public buildings and providing solar units to 130,000 low-income households, with half receiving them free of charge.
MoUs have been signed between the Bank of Khyber and the Pakhtunkhwa Energy Development Organization (PEDO) for financing and implementation. Public institutions such as hospitals, schools, and police stations will be solarized to reduce long-term operational costs and ensure uninterrupted power supply.
Hamza Khan, President of PML-N Nowshera, highlighted the full support of the federal government, led by Prime Minister Shehbaz Sharif, towards renewable energy. He noted that the policy environment, from tax exemptions to net metering, has facilitated investments in solar energy by individuals and businesses.
The implementation of the Centralized Trading and Bilateral Contract Market (CTBCM) model is anticipated to further stimulate investments in renewable energy and enable direct power trading.
However, experts caution that this decentralized energy revolution must be underpinned by robust planning.
A study titled "Great Solar Rush in Pakistan" by Renewables First revealed that Pakistan imported 15 GW of solar panels from China in the last fiscal year, contributing to a 10.4% reduction in grid electricity demand. The report emphasizes the urgent need for upgrades to the national grid and revised demand forecasting to support this transition.
While acknowledging the substantial benefits, Dr. Naeem raised concerns about challenges related to Independent Power Producer (IPP) contracts, which guarantee fixed payments regardless of usage. He stressed that restructuring these agreements is crucial for the effective integration of renewables.
Workforce development is identified as another critical area. Dr. Zilakat emphasized the need for skilled technicians, certified installers, and technical education programs to support the growth of solar energy.
The adoption of solar energy is expanding due to increased access to financing. Dr. Malik noted that banks now offer tailored solar loans for households, SMEs, and farmers. The recent downward trend in high interest rates linked to KIBOR has made solar loans more affordable, whereas they previously hindered uptake.
To mitigate risks, banks collaborate with approved vendors and conduct on-site surveys to validate demand. "Reputable vendors on the approved list ensure both pre- and post-installation service," Dr. Malik added.
Zahid Shinwari, former President of the Sarhad Chamber of Commerce and Industry (SCCI), emphasized that solar power is labor-intensive and cost-effective, promoting industrial growth.
He highlighted that the solar value chain, from installation to maintenance and localized manufacturing, creates job opportunities across Pakistan, particularly in rural and peri-urban areas of KP.
Looking ahead, industry experts project that solar energy could constitute around 10% of the national energy mix by 2030. The installed capacity is expected to surge from 1.41 GW in 2024 to 9.53 GW by 2029, driven by consumer demand, favorable policies, and technological advancements. With decreasing costs, government incentives, and strong consumer interest, solar energy is transitioning from a luxury to a necessity.
As Pakistan progresses towards a more resilient and sustainable energy future, solar power is poised to play a pivotal role in alleviating power shortages, stabilizing the economy, promoting agriculture, industrialization, and mitigating the impacts of climate change.
