Pakistanis – especially in rural areas – are taking energy independence into their own hands
Muhammad Imran, a 26-year-old entrepreneur living in Charsadda – under Khyber Pakhtunkhwa (KP) province of Pakistan, stands beside his two flour grinding machines, watching the millstones spin at high speed under the midday sun.
Unlike before – when 18-hour power outages and expensive diesel generators made his business barely viable – he now enjoys an uninterrupted power supply.
A year ago, he invested 2.5 million PKR into a 24-kilovolt (KV) rooftop solar system, equivalent to his yearly diesel and electricity costs.
“The commercial electricity rates have become unaffordable,” he says. “Those who can afford it are trying to switch to solar. It is a one-time investment for 20 years.”
Across Khyber Pakhtunkhwa and beyond, thousands of small businesses and households are making the same calculation.
With power shortages worsening, grid electricity becoming more expensive, and Chinese solar panels flooding the market at lower prices, Pakistanis – especially in rural areas – are taking energy independence into their own hands.
But this shift to solar energy is not being driven by government incentives or national policy, but by individual necessity. Like Imran, millions in Pakistan lack a reliable power supply. Of the country’s 42,131 MW electricity capacity, only 7% comes from renewables.
But for many rural consumers, dependence on state-owned electricity is no longer an option.
Tariffs set by the National Electric Power Regulatory Authority (NEPRA) continue to rise, while circular debt in the power sector – fueled by inefficient subsidies and expensive long-term fossil fuel contracts – has made grid electricity more expensive than ever.
In many areas, power cuts last so long that even those who can afford electricity often receive little of it. While this has resulted in what many call one of the largest solar revolutions in the world, experts say, Pakistan needs international support to boost this transition.
“Pakistan’s ambitious strides towards a sustainable energy transition, notably in solar power and electric mobility, deserve recognition,” says Harjeet Singh, a strategic advisor for the Fossil Fuel Non-Proliferation Treaty Initiative.
But he adds “it is imperative that wealthy nations with large historical emissions fulfill their obligations by bolstering these efforts through robust international cooperation and support. This is crucial to ensure that countries like Pakistan are not left behind.”
In December 2024, the country endorsed a Fossil Fuel Non-Proliferation Treaty, becoming the first South Asian nation to do so. This treaty seeks to phase out fossil fuels and transition to renewable energy, particularly solar, with support for developing nations.
However, at the ground level, the energy transition largely remains a self-funded, market-driven phenomenon, with little structured government support for individual consumers.
KP has emerged as a key hub for Pakistan’s solar transition. Entire markets in Peshawar and Mardan are now dedicated to solar panels, inverters, and batteries, with the Mardan Bypass bustling with activity.
Buyers load solar panels onto minibuses and motorbike carriers, while shopkeepers struggle to keep up with demand.
Masood Shah, a customer from Mardan, installed a 5KV off-grid solar inverter last year and is now upgrading to an 8KV hybrid system. “The prices are reasonable, and I no longer have to worry about power outages,” he says.
China’s aggressive push into Pakistan’s solar market has made the transition easier.
With intense competition among manufacturers, panel prices have dropped significantly, while the local assembly of inverters and battery storage systems has strengthened Pakistan’s solar ecosystem.
Yet, a major affordability gap remains – despite government concessions on solar panel imports, poor families still lack the purchasing power to afford them.
Neelam Bibi, a mother of six from rural Khyber Pakhtunkhwa, has been trying to install a rooftop solar system for the past two years. However, even as panel prices have fallen, the cost of batteries and inverters remains out of reach for her family.
“Four solar panels would be enough for us, but we do not have the budget,” she says.
Many families like Neelam’s are looking to government schemes for help, but so far, assistance has been limited.
Last year, the KP government launched a PKR 55 billion solar project to transition 130,000 low-income households to solar, prioritizing high-load-shedding areas.
In addition to household solarization, five private solar projects of 249 MW in DI Khan, Kohat, and Nowshera districts are in pipeline. The provincial government has also solarized 8,000 public schools and 4,000 mosques, with more projects in the pipeline.
However, experts argue that one-time solarization projects alone will not be enough. According to Ebipere Clark, a Visiting Fellow with the African Policy and Research Institute, governments need to focus on financing solutions rather than just reducing solar panel prices.
“Currently, in terms of affordability, batteries and inverters present the real challenge, less so the panels themselves. If governments can provide low-interest loans or installment plans, more people can afford to make the switch. The key is ensuring that solar is not just for those who can pay upfront, but for everyone, by allowing pay-as-you-go,” he explains.
In contrast to Pakistan, countries like India and Bangladesh have successfully expanded solar access through microfinancing, government-backed loan programs, and subsidies for battery storage.
If similar policies were introduced in Pakistan, millions more people could transition to solar power, easing pressure on the grid while improving energy access in rural areas.
The government has taken some steps to support renewable energy, such as zero-rating imports of raw materials for solar panels, inverters, and lithium-ion batteries in June 2024. However, large-scale projects remain stalled, and subsidies or financing options for households remain scarce.
In Khyber Pakhtunkhwa, five private sector solar projects are in the pipeline, but the province lacks a dedicated grid and relies on the federal government.
“Governments must prioritize a favorable environment for private sector investment and allocate resources to integrate clean energy into national grids,” says Manjeet Dhakal of Climate Analytics South Asia.
As policy uncertainty remains, many rural Pakistanis are turning to battery storage.
“Batteries are more critical than ever,” says Clark. “Solar panels will keep getting cheaper, but the real challenge to affordability is the cost of energy storage.”
Pakistan’s battery market is growing, but prohibitive costs remain a challenge. Experts say subsidies could help more households store power, reducing grid dependence.
“Countries transitioning to solar should look beyond simply importing batteries and also consider investing in recycling and refurbishing batteries to build a sustainable and circular energy storage ecosystem,” says Clark.
Despite the challenges, Pakistan remains one of the fastest-growing solar markets in Asia, with an estimated twenty-two gigawatts of solar panels imported in 2024 alone.
The country’s vast sunlight potential, combined with the need for energy independence for its millions of people, makes solar an increasingly attractive option.
However, for this transition to be expanded throughout the country, and made accessible to those who need it the most, policy support is desperately needed.
Muhammad Daud Khan, the author of this article, is a multimedia producer. He Tweets @daudpasaney.
