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PESHAWAR, Jul 08 (APP):Faraz Khan, a 32-year-old resident of Nowshera, finally found relief from prolonged loadshedding after installing a 10kW solar system on his house rooftop.
“We were suffering from up to 18 hours of power outages daily. I had no choice but to take out a loan to install solar panels to provide relief to his family during the oppressive weather,” he told APP.
“Now, not only do we run all our household appliances including air conditioners and refrigerators but we’re even generating surplus electricity, which we sell to our neighbours for profit.”
Though the initial investment was substantial, Faraz said it quickly paid off.
His electricity bills plummeted from Rs. 40,000 a month to virtually zero. “It’s peace of mind. I feel like we’ve taken control of our power,” he said, underscoring a growing trend of energy independence in both urban and semi-urban Pakistan.
This consumer-driven shift towards solar power is accelerating in KP. According to Global Electricity Review 2025, Pakistan imported 17 GW of solar panels in 2024—twice the volume imported in 2023—making it the largest importer globally.
The shift is driven by a mix of rising electricity tariffs, unreliable grid power, climate consciousness, and improved affordability of solar technologies.
Pakistan’s energy mix has historically relied on fossil fuels and hydropower. However, the federal government has undertaken serious reforms to diversify its energy portfolio by promoting renewable energy sources.
Prof. Dr. Naeem Khattak, former Chairman of the Economics Department at the University of Peshawar, explained that rising power consumption has made diversification essential. Solar energy, backed by technological advancements and declining costs, presents one of the most viable options for large-scale energy production in Pakistan.
Dr. Khattak noted the economic advantages of solar, including lower production costs for industries, improved productivity, and reduced exposure to global energy price volatility.
“Solar power supports SMEs by ensuring reliable electricity and contributes to GDP growth by reducing reliance on expensive thermal power,” he said.
The Renewable Energy (RE) Policy 2006 laid the foundation for Pakistan’s renewable journey, encouraging private sector investment and introducing net-metering regulations in 2015.
As a result, more than 302,409 net-metering connections have been established, with a combined generation capacity of 4,492 MW, according to NEPRA.
Under the National Electricity Policy 2021 and National Electricity Plan 2023–27, the government aims to achieve 60% of electricity generation through indigenous clean energy sources by 2030.
Khyber Pakhtunkhwa is spearheading large-scale solarization projects. Engr. Tariq Sadozai, Adviser to the Chief Minister on Energy, revealed that two mega projects worth Rs. 55 billion are underway.
These include solarizing 13,000 public buildings and providing solar units to 130,000 low-income households, half of which will receive them free of cost.
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 cut long-term operational costs and ensure uninterrupted power.
Hamza Khan, President of PML-N Nowshera, emphasized that the federal government under Prime Minister Shehbaz Sharif is fully backing renewable energy.
“From tax exemptions to net metering, the policy environment has made it easier for individuals and businesses to invest in solar energy,” he said.
The Centralized Trading and Bilateral Contract Market (CTBCM) model under implementation is expected to further unlock renewable energy investments and allow direct power trading.
However, experts warn that this decentralised energy revolution must be supported by robust planning.
The “Great Solar Rush in Pakistan” study by Renewables First notes 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 calls for urgent upgrades to the national grid and revised demand forecasting to support this transition.
While the benefits are substantial, Dr. Naeem cautioned about challenges related to Independent Power Producer (IPP) contracts, which guarantee fixed payments regardless of usage.
“As solar reduces grid demand, these legacy contracts become inefficient, adding to circular debt and distorting tariffs,” he noted. Restructuring these agreements is key to integrating renewables effectively.
Workforce development is another critical area. “We need skilled technicians, certified installers, and technical education programs to support solar growth,” Dr. Naeem emphasized.
Solar adoption is also expanding due to increased access to financing. “Banks are now offering customized solar loans for households, SMEs, and farmers,” Dr. Naeem said. While high interest rates linked to KIBOR previously hindered uptake, the recent downward trend is making solar loans more affordable.
To mitigate risks, banks work only with approved vendors and conduct on-ground surveys to validate demand. “Reputable vendors on the approved list ensure both pre- and post-installation service,” he added.
Faud Ishaq, former President of the Sarhad Chamber of Commerce and Industry, highlighted that solar is labor-intensive and cost effectiveness viable for industrial growth.
“From installation to maintenance and localized manufacturing, the solar value chain creates jobs across Pakistan, especially in rural and peri-urban areas of KP” he said.
Looking ahead, industry experts estimate that solar could account for around10% of the national energy mix by 2030. Installed capacity is projected to grow from 1.41 GW in 2024 to 9.53 GW by 2029, driven by consumer demand, favorable policy, and technological improvements.
With declining costs, the government incentives, and strong consumer interest, solar energy is no longer a luxury but becoming a necessity.
As Pakistan moves towards a more resilient and sustainable energy future, solar power is poised to play a pivotal role in reducing load shedding, stabilizing the economy, promote agriculture, industrialization and mitigating effects of climate change.