Pakistan's biggest source of electricity is now solar power

For years, millions of Pakistanis endured soaring electricity bills and long power cuts, often spending hours without electricity despite paying high tariffs.

Now, that system is being transformed—not through a government-led programme, but by ordinary people installing solar panels on their rooftops.

Driven by rising electricity prices, frequent blackouts and falling solar panel costs, Pakistan has witnessed one of the world's fastest rooftop solar booms. Energy analysts say distributed solar has become the country's largest source of electricity during peak demand, fundamentally changing how Pakistan generates and consumes power.

A solar boom unlike any other

Unlike utility-scale solar farms, most of Pakistan's new capacity comes from rooftop and off-grid installations that operate independently of the national grid.

According to energy think tanks Ember and Renewables First, Pakistan added around 27 gigawatts (GW) of distributed solar capacity between 2023 and 2025—roughly matching the country's entire conventional thermal power capacity built over decades.

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The country also emerged as one of the world's biggest importers of Chinese solar panels, importing more than 16 GW of solar modules annually in both 2024 and 2025.

Today, rooftop solar is estimated to supply nearly 28 per cent of Pakistan's electricity, compared to around 10 per cent just two years ago.

Why people switched

The transition was driven by economics rather than government incentives.

Electricity tariffs in Pakistan have risen sharply in recent years, while many areas continued to experience load-shedding lasting several hours a day.

At the same time, Chinese-made solar panels became significantly cheaper, making rooftop systems affordable for households, businesses and farmers.

Many homeowners are now able to recover the cost of a typical solar installation within just a few years while dramatically reducing their electricity bills.

Benefits beyond lower bills

The solar revolution has brought wider economic benefits.

Reliable daytime electricity has allowed households to use appliances without worrying about outages, while farmers in Punjab and Sindh have increasingly replaced diesel-powered irrigation pumps with solar-powered systems.

Analysts estimate the country has also reduced billions of dollars in oil and liquefied natural gas (LNG) imports by generating more electricity from the sun.

In many major cities, rooftop solar has also helped ease daytime power shortages by reducing pressure on the national grid.

A growing challenge for the power sector

While consumers are benefiting, Pakistan's state-run power sector is facing mounting financial pressure.

The government remains tied to long-term contracts with thermal power plants, paying them fixed capacity charges even when they generate little electricity.

As more households and businesses leave the grid by switching to solar, electricity sales decline while these fixed costs remain.

To recover the expenses, utilities are forced to increase tariffs for the remaining consumers, making solar even more attractive and encouraging more people to disconnect.