PTBP Web Desk
Pakistan’s rapid expansion of solar energy has delivered significant economic relief by reducing reliance on imported liquefied natural gas (LNG). According to a report by UK-based energy think tank Ember, the country has saved an estimated $12 billion in LNG imports over recent years as solar generation surged across residential and commercial sectors.
The growth of solar generation in Pakistan has been particularly striking. It increased from 7.7 terawatt-hours (TWh) in 2022 to 36.6 TWh in 2025, reflecting an average annual growth rate of approximately 68%. This expansion has positioned solar energy alongside hydropower and natural gas as one of the leading sources of electricity generation in the country.
As solar capacity expanded, the share of fossil fuels in Pakistan’s energy mix began to decline. Ember noted that gas-based power generation fell by roughly 9% during the same period, while coal generation remained relatively stable. Overall demand for fossil fuels dropped by at least 37%, signaling a structural shift in how electricity is produced and consumed in the country.
The rise of rooftop solar systems has played a central role in this transition. Many households and businesses turned to solar after electricity tariffs increased following reforms linked to International Monetary Fund (IMF) programs. Higher grid electricity costs made distributed solar systems more attractive, encouraging consumers to invest in alternative energy solutions.
Additional factors, including supportive net metering policies and the availability of relatively low-cost solar panels imported from China, further accelerated adoption. These combined forces have contributed to a decentralized energy model that is increasingly reducing pressure on Pakistan’s national grid.
Ember highlighted that if solar generation had not expanded, Pakistan would have likely relied more heavily on fossil fuels. In that scenario, gas generation could have risen by around 15%, significantly increasing import requirements. Instead, solar deployment has helped avoid billions of dollars in LNG purchases, easing pressure on foreign exchange reserves.
Despite these benefits, the report also pointed to emerging challenges. A decline in grid electricity demand could lead to higher tariffs for remaining consumers, as fixed infrastructure and operational costs are distributed across a smaller user base. This situation may create financial stress for the power sector if not managed carefully.
The report emphasized the need for authorities to maintain a financially stable grid system while supporting continued rooftop solar growth. It also noted that the absence of widespread battery storage limits the ability to fully integrate intermittent renewable energy into the system.
Pakistan’s progress in renewable energy aligns with broader government goals. According to Reuters reporting, Power Minister Awais Leghari stated that around 55% of electricity generation currently comes from clean sources, with plans to raise this share above 90% by 2034. He also noted that approximately 74% of electricity generation now relies on indigenous resources, with a target to exceed 96% in the coming decade. More details can be found at https://www.reuters.com/.
At the same time, Pakistan continues to navigate structural challenges in its energy sector, including circular debt, capacity payments, and reliance on imported fuels. Reports from Dawn have previously highlighted how rising electricity tariffs and policy adjustments have influenced consumer behavior, pushing more users toward self-generation through solar systems. Further coverage is available at https://www.dawn.com/.
Industry observers believe that Pakistan’s solar transition could reshape its long-term energy landscape. Continued investment in grid modernization, storage solutions, and regulatory stability will be essential to balance distributed generation with centralized infrastructure.
The findings from Ember underscore a broader shift in Pakistan’s energy dynamics, where solar power is not only contributing to cleaner electricity but also reducing import dependency. As adoption continues to grow, policymakers face the dual challenge of encouraging renewable expansion while ensuring the financial sustainability of the national power system.
