Pakistan is witnessing a dramatic shift to solar energy as electricity prices soar, with tariffs rising over 25% on average after IMF reforms. Important citizens like Karachi entrepreneur Saad Saleem embraced the rooftop solar panels.
They took this step to escape rising costs of electricity. His $7,500 investment allows near unlimited AC usage despite the scorching 40 degree heat. This solar boost transformed Pakistan’s energy landscape.
Solar energy now supplies 14% of power (up from just 4% in 2021) and surpassed coal as the third-largest energy source. The rapid adoption created significant energy inequality across the social classes of Pakistan.
While wealthy homeowners and industrial users like Interloop (who installed solar arrays for its 9,300 livestock operation) swim in their savings, urban middle class families face painful cutbacks.
Apartment dweller Nadia Khan is a fit example this divide. Unable to install panels, her family rarely uses AC and has even stopped ironing clothes to manage bills. Only 1% of consumers now use over 400 monthly power units, down from 10% pre pandemic.
But a million of them ration electricity. Several structural issues limit solar’s broader benefits. Fewer than 10% of users feed excess power back to the grid due to costly equipment and bureaucratic delays (approvals take 3–9 months).
Required inverters cost $1,400 to $1,800 which is about half Pakistan’s median household income. This creates a vicious cycle where grid operators lose their wealthiest customers. The loss drives up prices for remaining users to cover fixed costs.
Which then overburdens non solar households. China’s role as a supplier helps, exporting 16.6 gigawatts of solar capacity to Pakistan in 2024 (five times than the 2022 levels) at 54% lower per watt costs.
While Power Minister Awais Leghari promotes Pakistan’s “solar revolution,” experts warn the transition may leave millions behind. The government faces pressure to reform grid policies and address the growing energy divide before economic decline worsens.