![Pakistan's solar market is thriving as high electricity costs, declining panel prices, and government policies boost demand. [Image via Samaa]](https://pkafgyouthforum.com/wp-content/uploads/2024/12/solar-panel-prices-pakistan-september.webp)
Pakistan’s solar market has rapidly emerged as a significant force on the global stage as households and businesses seek relief from soaring electricity bills. In just two to three years, Pakistan’s solar market has grown to rank among the largest importers of solar panels worldwide.
According to the World Economic Forum, Pakistan imported 13 gigawatts of solar panels during the first six months of the current fiscal year. This makes Pakistan the third-largest importer of Chinese solar panels. The volume of imported panels now exceeds 30% of the country’s total power production capacity. In 2023, Pakistan’s total power production capacity stood at 46 gigawatts.
The growing demand for alternative energy sources due to high electricity costs is a key driver behind this shift. Additionally, a 90% drop in solar panel prices over the past decade has made solar energy more accessible. Government policies, including removing the 17% sales tax and introducing net metering, have further accelerated solar adoption.
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Experts attribute Pakistan’s costly electricity to irresponsible agreements with Independent Power Producers (IPPs). The Institute for Energy Economics and Financial Analysis reports that Pakistan paid PKR 6 trillion (approximately $21.5 billion) in capacity payments from 2019-20 to 2023-24. This has exacerbated the energy affordability crisis in the country.
Solarization continues to gain momentum as an effective solution to Pakistan’s energy woes, providing both economic and environmental benefits.
This news is sourced from [Samaa] and is for informational purposes only.
