Solar energy has become a transformational solution for Pakistan’s industrial organizations through its reliable and affordable methods to address energy issues. The growing energy requirements and unstable power infrastructure drive Pakistani businesses to implement solar power systems for their energy supply needs. The industrial sector in Pakistan has experienced quick growth in solar energy adoption which shows valuable advantages for companies of all sizes.

Pakistan has ample sunlight reaching the country for 300 days annually. Businesses searching for replacement solutions to traditional energy supply choose solar power because of its suitability. Industrial businesses that used to pay high electricity expenses now find solar energy economically beneficial while preserving its environmental sustainability, which boosts its appeal in the market. Solar power also emerges as a reliable solution choice for industries because traditional energy prices keep rising and supplies become unreliable.

Data on Solar Uptake in Pakistan’s Industrial Sector

The industrial sector in Pakistan experiences rapid expansion in its adoption of solar power systems. The adoption of solar power exists because businesses require dependable energy supply alongside lower operational costs. The popularity of captive solar generation has surged because companies generate their own power through solar installations. The C&I sector now produces at least 1 GW of solar power using captive systems but independent assessments suggest the actual power production could reach up to 2-3 GW.¹ The solar energy adoption rate has experienced a notable increase during an era where solar power utilization was significantly lower only a few years ago.

Different industrial sectors like manufacturing, textiles, and food processing lead this energy transformation. Business operations in Pakistan face increasing production risks due to the grid’s frequent power shutdowns and voltage issues. Solar power enables these industries to lower their expenses through its cheaper stable supply of energy beyond what the national grid provides.

Cost Savings and Energy Security

Businesses require alternatives to traditional electricity since its high costs drive them toward long-term cost reduction options. A business that invests in solar energy will achieve substantial savings in electricity costs. The minimal expenses needed for solar power generation through installed solar panels result in fast returns on initial investments.

Additionally, solar power delivers reliability against power disruptions that basic utility grids are incapable of providing. Power outages impose severe challenges upon the industrial sector because it depends on dependable electric supply for its operations. This allows industries to produce their own electricity which delivers them a dependable and foreseeable electrical supply. 

The Role of Shams Power in Solar Uptake

One of the companies leading the charge in solar energy adoption within Pakistan’s industrial sector is Shams Power. We have been instrumental in providing tailored solar solutions to businesses, helping them reduce their reliance on the national grid. We specialize in large-scale solar projects for industrial clients, enabling businesses to generate their own electricity efficiently and sustainably. By offering end-to-end solar energy solutions, Shams Power has empowered industries to take control of their energy needs, reduce operational costs, and contribute to a greener environment.

Through our projects, several industrial businesses in Pakistan have made the transition to solar power, enjoying benefits such as lower energy bills and greater operational reliability. This growing trend of solar adoption is evidence of the changing mindset within the industrial sector, as businesses realize the long-term advantages of solar energy in terms of both cost and sustainability.

The Future of Solar Power in Pakistan’s Industrial Sector

The industrial sector of Pakistan shows promising prospects for solar energy adoption in the years to come. Solar power should become an essential component of Pakistan’s industrial energy combination as the industrial sector increases its energy demands while environmental sustainability gains importance. Solar energy solutions will expand across the business landscape because of their affordable operation along with their dependable function and environmental sustainability benefits.

Conclusion

Solar energy has emerged as a vital solution to rescue Pakistani industries from their current energy challenges. Businesses that adopt solar power systems receive multiple benefits including financial savings along with security of power supply while creating a cleaner future energy system. The industrial sector of Pakistan stands to experience a brighter energy-efficient future as Shams Power leads the transition to solar power alongside other companies.

The commercial and industrial sectors in Pakistan have started a major energy transformation through solar power which drives the nation’s energy systems forward. This transition toward solar power represents what experts call the “Great Solar Rush” due to progressively more expensive electricity rates and worsening power outages, leading to the recognition of solar power as an alternative energy. Businesses now choose solar energy as their optimal power solution because it allows them to operate independently from the national grid while delivering dependable sustainable power.

Pakistan spent USD 4.1 billion on solar panel imports from China in the period from 2019 to 2023. Solar panel import figures in FY2024 reached 13 GW as the upward trend continued from previous years. (Refer to Figure 1)

Figure 1: Solar PV Trade – FY24 – Comparing Pakistan’s Solar Imports with China’s Solar Exports

The rising demand for solar is as follows:

Rising Commercial Electricity Prices

The rapid increase of electricity tariffs represents a major factor behind the commercial and industrial sectors’ growing interest in solar energy. The electricity price increase of 155% during the last three years in Pakistan motivates companies to adopt alternative energy solutions that lower their operational costs. Hence, businesses are now depending on solar energy to fulfill their power requirements while achieving substantial financial advantages through long-term reductions (Refer to Figure 2).

Figure 2: Industrial Economic Group Electricity Sold in & Number of Consumers

Energy Shortages and Grid Instability

The adoption of solar power systems in the commercial sector has benefited from the net metering policy. Under this policy, commercial facilities can put their surplus energy into power grid distribution which generates both financial profit and reduces electricity expenses.The market opportunity created by net metering has spurred numerous businesses to take advantage of it, thus reducing their costs while enhancing the nationwide renewable energy capacity.

CSR and Sustainability Goals

The growing solar energy use throughout industrial and commercial sites helps create a cleaner and greener Pakistan. Adopting solar power helps companies minimize their greenhouse gas emissions and pushes Pakistan toward decreasing their fossil fuel consumption.

This adoption matches worldwide industry patterns, showcasing businesses linking sustainability concerns to CSR goals. Additionally, the rapid solar boom among industrial and commercial entities across Pakistan allows domestic businesses to enhance global clean energy adoption efforts with solar-powered economic benefits.

Declining Solar Costs and Dependency

The commercial and industrial sectors of Pakistan are set to experience exponential solar energy growth which offers substantial promise for the future. Solar panel imports and installations continue their upward trend because these developments represent a decisive transition towards sustainable, affordable and environmentally sensitive electricity systems. Businesses adopting solar power systems will lead Pakistan toward a future free of foreign power dependencies through eco-friendly technological solutions.Through their investment in solar energy solutions, businesses will achieve cost savings while helping Pakistan progress toward environmental sustainability.

Financing Options

Purchase Power Agreement (PPA): A Purchase Power Agreement (PPA) is a long-term contract, usually lasting 15 to 25 years, in which Shams Power installs, runs, and maintains the solar system in exchange for the business agreeing to buy the electricity produced at a predetermined fixed price. Businesses who choose this option can take advantage of solar power without having to make an initial investment and just pay for the energy that is utilized, frequently at a lower cost than they would with regular electricity.

Conclusion

In conclusion, Pakistan’s increasing solar power usage provides a long-term answer to the country’s energy problems. With Pakistan getting plenty of sunlight, solar energy is an affordable and sustainable substitute for fossil fuels. Solar power companies like us are setting the standard by offering massive solar projects that can cut carbon emissions, provide green jobs, and drastically lessen Pakistan’s dependence on imported electricity. Pakistan can boost economic growth and energy security by investing in solar infrastructure and laws that encourage it. Shams Power is a vital player in accelerating the transition to a more environmentally friendly future.

Pakistan has to deal with the unpleasant effects of global warming.There are serious hazards posed by ecological degradation, climatic instability, and rising temperatures. One redeeming feature in this battle to achieve a viable future is sunlight energy. Selecting the best solar inverter in Pakistan is essential for maximizing dependability and efficiency in order to fully utilize solar electricity.

The Approaching Danger

One of the nations most at risk from climate change is Pakistan. Over-reliance on fossil fuels to provide energy is a major factor in:

Greenhouse Gas Emissions: One of the significant causes of global warming is the emission of dangerous gases like carbon dioxide when fossil fuels are burned.

Air pollution: Burning fossil fuels releases smog and dangerous particulates into the atmosphere, affecting public health and boosting respiratory diseases.

Solar Power: A Light of Faith

A sustainable and clean way to address these environmental issues is via solar energy. 

Decreased Carbon Footprint: Since solar energy generation eliminates the need to burn fossil fuels, greenhouse gas emissions are greatly reduced. This fights against global warming and lessens its terrible effects.

Cleaner Air: Unlike fossil fuels that emit toxic substances like sulfur and nitrogen oxides, the generation of solar energy does not produce any pollution. The air quality and public health are enhanced due to it.

Advantages for The Environment Beyond Emissions

Conserving Water: Conventional power plants need a lot of water to cool down. In contrast, solar energy uses little water, which makes it a useful resource in places like Pakistan where water is scarce.

Reusing Land: To encourage land rehabilitation and stop additional desertification, large-scale solar power facilities can be placed strategically on arid or damaged land. Additionally, With rooftop arrays, panels can contribute to carbon dioxide emissions reduction with a bigger effect. The best locations for a large-scale solar power system that businesses can easily utilize when needed are open fields, vacant parking lots, and abandoned buildings.

Electricity Generation: As long as the sun exists, you can harness its power to produce electricity anywhere. Because it is available, solar power is a great source of renewable energy for locations where traditional sources of electricity are scarce or for off-grid use.

Resilience of Power Grid: Solar power assists in enhancing the resilience of the power grid by ensuring a consistent supply of electricity, even when conventional sources are disrupted or removed from operation because of harsh weather or high demand.

Ecosystems and Wildlife: By reducing climate change emissions, solar energy-based electricity benefits ecosystems and wildlife. Using solar energy to meet our energy requirements can aid us in reducing the negative impacts of power generation and help safeguard valuable ecosystems and species.

Instances in Practice

Grid-tie Solar System: The energy produced by grid-tie solar systems is fed into the grid and stored for later use. Any energy generated is credited to the system owner under a net metering agreement, and they are free to consume it whenever they choose.

Off-Grid Solar Power Systems: When it comes to providing electricity to isolated areas without access to a utility line, off-grid solar works best. When there is a requirement to provide electricity to isolated areas that do not have access to a utility line, off-grid solar is best. Off-grid users are entirely in charge of producing their own electricity. Building an off-grid solar system with enough electricity to last for one day, and then a backup generator to top off output during extended periods of bad weather, is typically how this is accomplished.

Backup Solar Power Systems: A battery backup system is your best option if you reside on the grid but still want to be protected against power outages. On a daily basis, backup power systems operate similarly to regular grid-tie systems by connecting to the grid. But in the event of an outage, they also have a backup battery bank. In order to keep your appliances functioning in the event of a grid outage, the inverter immediately cuts off from the grid and uses the energy stored in your battery bank.

Conclusion

Pakistan can secure a cleaner environment and a more sustainable tomorrow for generations to come by adopting this clean and sustainable technology. Solar energy provides an effective weapon in Pakistan’s fight against climate change.

Solar panels are technology wonders that work even during low temperatures.The purpose of the panels is to capture sunlight and transform it into electrical power. Unexpectedly, because solar cells are so sensitive to sunlight, even a tiny bit of light can generate a substantial amount of energy. Even in colder climates, solar panels have several advantages.

Cost Effectiveness

Heating expenses can be decreased by using solar panels. Reliance on conventional energy sources is decreased by installing solar panels, which produce electricity that may run heating systems.Over the long term, this means huge energy savings. Electricity produced by solar panels can be fed into heaters to keep your business warm without spending more money on energy.

Functionality 

When the sun’s light strikes the cells and activates the silicon’s electrons, a photovoltaic solar panel produces electricity. More energy is created as the electrons move more quickly. The difference between moving and resting electrons determines the total output of a solar panel. Since electrons at rest have less energy in colder temperatures, the difference is greater and the energy production is higher when the sun activates them.

As there is less voltage loss in colder temperatures than in hotter ones, solar energy is also more effective in colder climates. This is because the wire’s resistance decreases with decreasing temperature, allowing for the transmission of greater power!

Installation

Winter is better for solar panel installation because of the lower temperatures, which make it easier for technicians to maintain your solar system, even if most businesses discover that summer is the most popular period to install rooftop solar panels. Additionally, your solar system powers the entire premises during the winter months when there is hardly any air conditioning, and any extra energy it produces may be given back into the grid. This is a huge benefit for companies.

Conclusion

There are many advantages to using solar panel technology in colder climates besides producing electricity. Solar panels are a sensible option for businesses due to their creative designs that enable them to function well. Even in cold climates, they are a smart choice for anyone looking to incorporate renewable energy because they cut heating bills and provide year-round energy savings.

By lowering carbon footprints and encouraging environmentally friendly energy use, solar panel adoption also supports long-term sustainability goals. 

Shams Power Limited is available to assist you if you’re prepared to investigate roof solar panel systems and enjoy these advantages. Our professionals can walk you through the procedure and get your business ready to effectively use solar power. Begin along the path to a more energy-independent and less expensive energy tomorrow by contacting us today.

What is a net metering bill?

The process of recording surplus energy produced by a solar installation and crediting it to the customer’s bill as a credit toward energy drawn from the grid is known as net metering. It’s been the law in many Pakistan locations for years and is a rather simple method of rewarding solar panel owners for their contributions.

Profitable incentives like high repurchase rates, fixed long-term generation licenses, and sizable allowances for installed capacity are provided by Pakistan’s present Distributed Generation and Net Metering Regulations. Due to favorable payback times brought about by these regulations, net-metered rooftop solar PV capacity has recently increased nationwide as a result of the sharp decline in solar photovoltaic (PV) prices on a worldwide scale.

Net metering credit value

Each kWh credit is equivalent to one kWh under real net metering, and they can be exchanged for grid energy whenever they want. Sometimes the credit is less than the retail value of a kWh, but other times it may be exactly the same.

Time of use rates

Under time of use (TOU) rate plans, which are provided by certain utilities, the price of energy varies according to the amount of time it is utilized. On weekdays, when most companies start using their appliances, the grid often experiences its peak demand in the morning. The price of energy rises during these periods. 

There are at least two distinct charges for on-peak and off-peak periods in TOU rate plans. Owners of solar panels with TOU rates receive credit for the electricity their panels generate and deliver to the grid. 

So, what are the benefits?

Financial Savings

Through net metering, companies acquire electricity generation capabilities that reduce their need for conventional power supply systems. Solar power permits businesses to cut their electricity expenses through use of excess energy that was sent back to the grid over an extended period. Businesses experience reduced costs with better financial conditions through the implementation of this system.

Return on Investment

The financial gain generated by installing renewable energy systems to take part in net metering schemes presents itself as an attractive opportunity. The combination of cheaper electricity and possible earnings from excess electricity helps companies recover their initial solar panel expenditure. A successful financial return of initial investment funds emerges throughout the entire operational duration of the system for business users.

Independence in Energy

The ability to achieve power independence requires you to select the appropriate solar power system size. One major advantage of producing your own electricity is that it enables you to lower dependency on unstable conventional energy costs and preserves your operations from electric outages and energy supplier disruptions. Solar power inPakistan leads to companies benefiting from increased energy autonomy which strengthens their electrical supply reliability.

Sustainability of the Environment

The environmental benefits of net metering are among its many noteworthy features. Net metering lessens dependency on fossil fuels, which cause air pollution and climate change, by encouraging the use of renewable solar energy.

Grid Efficiency and Stability

The integration of distributed energy generation into the current power system is made easier by net metering. In order to improve grid stability and lessen the burden on centralized power generation, net metering participants feed back the excess electricity they create.

Conclusion

In conclusion, net metering offers solar owners a thrilling chance to produce a few additional units and lower their electricity costs. It reduces the payback period of your solar system in addition to helping you save money on your monthly expenses. Businesses, regulators and policymakers must all understand that choosing the appropriate incentives necessitates striking a careful balance. The government can promote the use of renewable energy by keeping or increasing buyback rates, but this needs to be combined with initiatives to digitize and optimize the grid. Businesses return on investment can be greatly impacted by choosing the appropriate system size and comprehending their consumption profile.

Pakistan portrays outstanding energy transition against a backdrop of increasing climate change effects and rising energy prices in today’s world. Due to the necessity for a reliable energy source and the rising cost of electricity, businesses are increasingly using solar energy.

Many Pakistani businesses find electricity prices so high and unstable that they have become practically unreliable. Companies now consider “load shedding,” or frequent power outages to be a normal occurrence and a way to reduce the strain on the grid. Certain operations may face fatal risks to employees because of summer temperatures over 40°C when cooling systems are essential along with fans.

Action Taken Due to Increasing Electricity Prices

Solar energy use has seen an increase in demand because of the combination between rising costs and uncertain supplies. Solar panel installations on business roofs have become common practice because companies seek to decrease their dependence on the nation-wide electric grid. This developing tendency results from society needing stable renewable power with sustained availability at reasonable prices.

Affordable Solar Energy

Prices for solar panels have dropped by 90% in the last decade, making solar energy more affordable for businesses. Government programs such as the elimination of the sales tax on solar panels and the introduction of net metering have further encouraged the use of solar energy.

Initiatives taken by the Pakistani Government

The Pakistani government comprehends solar energy’s value as a necessary power source for the country’s upcoming years. Additionally, they initiated a campaign to promote renewable energy development as a primary step as the aim is to achieve 30% renewable energy usage as a power source for Pakistan by 2030.

Environmental Benefits of Solar Power

1. Decreased emissions of greenhouse gases

One of the main advantages of solar panels for the environment is the reduction of greenhouse gas emissions. Unlike fossil fuels, solar energy is clean, renewable, and carbon-free. Using solar electricity enables commercial enterprises to reduce their environmental impact and take an active role in the worldwide effort to combat climate change.

2. Reducing air pollution

Air pollution is lessened by solar energy in addition to greenhouse gas emissions. Fossil fuel combustion releases sulfur dioxide, nitrogen oxides, and particulate matter, all of which greatly contribute to air pollution. The implementation of solar power systems by businesses helps minimize environmental pollution which results in better health conditions for their residents.

3. Conserving water

The procedure of generating power through conventional methods including coal and nuclear plants requires water for cooling purposes. The operating process of solar panels demands either minimal or nonexistent usage of water. This is especially helpful in a place like Pakistan where water conservation is essential.

Financial Benefits of Solar Power

1. Creation of jobs

The solar industry of Pakistan holds the ability to produce numerous new job positions. Solar power has the ability to support economic growth in Pakistan by employing skilled workers from diverse fields including research and development, manufacturing, installation and maintenance services.

2. Savings on energy costs

The utilization of solar energy proves to be financially advantageous for the long-term generation of power. A business can decrease its electricity expenses when it implements reliable solar power production methods.

Other Benefits of Solar Power for Pakistan

1. Increased efficiency of solar panels

Solar panels function at their prime level in Pakistan because summer provides both longer daytime hours and extra strong solar energy. The power generation from sunlight reaches its highest point in this season, giving Pakistan an opportunity to capitalise the economic and environmental benefits of solar power.

2. Reducing excessive power consumption

Important times of electricity consumption in Pakistan’s summer months become more manageable due to solar power generation. Thus, solar panels decrease electrical grid strain and eliminate the necessity for new power station development and associated environmental effects from electricity production.

Conclusion

There are several financial and environmental advantages to solar panels, especially in Pakistan during the summer. By using the nation’s abundant sunshine and solar energy, Pakistan may reduce its reliance on fossil fuels, combat climate change, and give us a better, healthier environment.

At Shams Power, we believe sustainable energy does more than power businesses—it empowers individuals and transforms communities. We are honored to have our efforts highlighted in two prestigious Oxford Smith School articles: Empowering Women through Solar Energy: A Case Study from Pakistan and The Renewable Energy Entrepreneurs of the Global South. These features underscore our dedication to creating opportunities for women through our pioneering Solar EmpowHer training program.

Collaborating for Change

A key partnership driving this initiative is our collaboration with Women in Energy (WiE), a professional network championing female leadership in the energy sector. Together, we’ve successfully completed five training cohorts, equipping 70 women in Lahore and its surrounding areas—primarily from lower-middle-class backgrounds—with essential skills and opportunities.

While some participants join us with prior professional experience, many are recent graduates eager to break into the renewable energy industry.

One participant shared her inspiring story:

“I didn’t know much about solar panel installation or the different types of panels. When I heard about this women-only training opportunity, I knew I couldn’t miss it.”

A Pioneering Initiative

Our Solar EmpowHer journey began in 2019, when WiE joined forces with Shams Power to expand and refine a male-led pilot program. Recognizing the immense potential to empower women in the solar industry, we tailored this initiative to make it more inclusive and impactful.

The six-day training includes hands-on learning, dedicated a whole day to installing rooftop solar systems at Shams Power’s headquarters. This immersive experience equips participants with the confidence and practical skills needed to pursue careers in renewable energy.

Looking Ahead

We remain dedicated to our mission to expand Solar EmpowHer and reach even more women across Pakistan. These training sessions reflect our commitment to building a sustainable, inclusive future and harnessing the transformative power of solar energy.

Being recognized by the Oxford Smith School inspires us to continue making a difference—one empowered woman at a time. Together with our partners, we aim to light the way for stronger communities powered by the sun.

Join Us in Building a Sustainable Future

Discover more about our Solar EmpowHer program or explore partnership opportunities with Shams Power. Visit our website or follow us on social media. Let’s create a brighter, sustainable future driven by empowered women and clean energy.

Read the full article ‘The Renewable Energy Entrepreneurs of the Global South’ by the Oxford Smith School here.

Read the full article ‘Empowering Women Through Solar Energy’ by the Oxford Smith School here.

You must understand the hurdle of high utility costs if you own a business. Thankfully, there are a number of alternatives available in the market, with solar panels being the most well-known. Installing a solar PV system on a business property offers several advantages, including lower energy expenses and renewable solutions. 

Supply Clean and Renewable Energy

The clean and renewable power generated by photovoltaic cells is one of the main benefits of solar PV systems. In contrast to fossil fuels, solar energy lowers greenhouse gas emissions, which ultimately lessens the likelihood of climate damage. As a result of this, governmental bodies are now urging the commercial and industrial sector to use environmentally friendly power options, such as solar panels.

Tax Incentives & Solar Rebates

Many commercial property owners are unaware of tax incentives despite the fact that solar PV systems are becoming more and more widespread. Due to their high ROI, solar panels are a wise investment because they increase the cash flow of solar users. Commercial property owners can now install solar PV systems through these incentives and solar financing provided by Shams, thereby lowering costs.

An Eco-Friendly Approach to Business Development

It is our shared duty to work together for ecological conservation because our planet has seen devastating seasonal shifts, including earthquakes and floods due to climate change. The good news is that companies that have implemented renewable solutions attract a lot of other potential customers. Thus, solar panel installations are ideal for both commercial expansion and the environment.

Effective Usage

Solar panels are user and environmentally friendly. The smooth, protective surfaces of solar panels shield the inside photovoltaic cells from external elements like dust and wind. Because of its robust construction, solar panels are unlikely to break, and once installed by qualified professionals, solar PV systems guarantee enduring and effective operation throughout their life cycle.

Cut Down on Overhead

Because overhead costs go beyond staff salaries and operating supplies, every commercial organization wants to cut them. Utilities, insurance, supplies, and property upkeep are examples of overhead costs that are necessary for organizations to function effectively. For smooth business operations in this situation, a steady and dependable energy supply is necessary. Therefore, practically every element of business property is powered by electricity, depending on the region, and commercial solar users depend on grid power to run a variety of machinery and equipment. Fortunately, solar photovoltaic systems are among the best environmentally responsible ways to save energy costs. A workable way to reduce overhead costs and stabilize energy prices is with solar panels. 

Conclusion

Purchasing solar panels for businesses is undoubtedly a wise investment. Solar PV systems are sustainable because they provide an exciting blend of long-term profitability, cost savings, and environmental advantages. We at Shams Power simplify the decision-making process for you. We use only the best components to create solutions that are tailored to your needs.

Pakistan’s solar energy sector is anticipated to grow dramatically by 2025 as a result of government subsidies, growing demand for renewable energy sources, and advancements in technology. In an effort to reduce dependency on fossil fuels and improve Pakistan’s electrical issues, solar panels have grown in popularity.

Growth of the Solar Industry
Pakistan obtains solar energy nearly every year due to its substantial sun irradiation. When paired with foreign investments, this aspect offers a fantastic potential to harness solar energy from the nation’s most irradiated sites. Furthermore, the integration of renewable energy sources into generation, transmission, and distribution networks, as well as the off-grid supply via micro- and mini-grids to electrify rural regions nationwide, are some elements anticipated to generate market prospects in the future.

At a compound annual growth rate (CAGR) of 46.55%, the installed base size of the Pakistani solar energy market is anticipated to increase from 2.07 gigawatts in 2025 to 13.97 gigawatts by 2030.1

The factors propelling the market’s growth include growing environmental concerns about the usage of fossil fuels, the decreasing cost of solar panels and installation, and the growing acceptance of solar PV systems.

Utility sector: Dominating the market.

Through the use of photovoltaics (PV) or concentrated solar power, solar energy directly or indirectly transforms solar radiation into electrical power. Given the number of forthcoming projects and the declining cost of solar modules, the utility sector is expected to account for the largest portion of the Pakistani solar energy industry in the future years.

The Pakistani government has set targets, such as ensuring that by 2030, 30% of the nation’s electricity comes from renewable sources.1 

To achieve these goals, Through the Alternative Energy Development Board, the government is attempting to construct solar-generating plants all throughout the nation.

Technology Investments

Pakistan’s transition to solar energy is being accelerated in large part by foreign funding. Collaborations with global financial institutions, development agencies, and solar manufacturers have significantly raised the price and accessibility of solar technologies. Chinese solar companies have contributed significantly to the China-Pakistan Economic Corridor (CPEC) by providing affordable panels and technological know-how.

International finance programs like green bonds and renewable energy funds have also enabled large-scale solar projects in Pakistan, including solar farms and hybrid power systems. These investments not only solve the energy crisis but also promote job creation and sustainable development.

Supportive Government Policies

Following the introduction of a series of measures by the government to encourage the development of renewable energy, solar photovoltaics (PV) became a part of Pakistan’s energy mix in 2013. The Pakistani government is aware that the country receives 9.5 hours of sunlight on average per day. The Ministry of Energy’s Private Power and Infrastructure Board reports that seven 530-megawatt solar projects are up and running, providing power to the country’s system.

Nearly 8.7% of the nation’s renewable energy capacity came from the solar energy sector as of 2023. Over the next few years, this share is expected to rise as a result of numerous government efforts.

The National Solar Energy Initiative, which aims to generate 10,000 megawatts (MW) of electricity through solar energy projects in the upcoming months, was approved by the Pakistani government in September 2022.1 By lowering the import price of pricey furnace oil and diesel, the program hopes to stimulate demand in the nation’s utility industry. To meet its goals, the government is likely to fund additional utility-scale projects and increase the proportion of renewable energy. 

Government buildings, various industries, and tube wells would be able to switch from diesel to solar power with the aid of the solar energy project. A portion of the coal, diesel, and furnace oil-powered power plants will be replaced.

Conclusion

Because of government regulations and initiatives, it is consequently expected that the Pakistani solar energy market will grow significantly over the course of the projected period. The country is getting closer to becoming energy-independent as it increases its solar capacity. Reduced dependency on imported fossil fuels and government initiatives and policies will help the switch to renewable energy. 

Power the future of Pakistan with Shams Power Limited.

Frequent power disruptions would have halted operations just a year ago. Currently, a collection of solar panels installed on the roof provides all the energy. At Shams Power, we believe that distributed solar energy will play an important role in the future by providing more affordable and easily available electricity. 

Fair and reasonably priced power access 

Solar energy is evolving from a commodity to a technology with two main advantages. First, the cost of solar technology keeps decreasing as it advances. The cost of solar energy has dropped by 33.4% each time production has doubled between 2010 and 2023.

Secondly, international politics and the global market control the price of fossil fuels. In contrast, using solar panels goes a long way in allowing businesses to produce their power, therefore increasing control. People are able to produce their electricity requirements, unlike fossil fuel systems, which require expensive and unpredictable transmission and imports.

This independence will increase, and energy generation may become more decentralized as batteries become more affordable. This year, Pakistan is among the most glaring examples of emerging economies spearheading this shift.

Growing demand for solar energy

Pakistan is now the third-largest importer of these panels after purchasing an astounding 13 gigawatts (GW) of Chinese solar panels in the first half of this year. The UK is only expected to build 1.5 to 2 GW of solar capacity this year, and the US had build 32GW in 2023. In contrast, 46 GW, or 30% of Pakistan’s total power capacity, was imported in just six months in 2023. Locally, the impact is more significant, and this could place Pakistan as the sixth-largest solar panel installer in 2024. 1

Pakistan’s solar revolution’s driving forces 

The reliable grids in Pakistan and the inexpensive and abundant supply of solar energy are the two primary drivers propelling the fast adoption of solar power. Businesses in Pakistan suffer from frequent power outages or load shedding, and electricity costs have increased by 155% since 2021.

Businesses in Islamabad pay between PKR 29.11 ($0.10) and PKR 48.00 ($0.17) per kWh for grid electricity, but solar panels cost about PKR 22-30 ($0.08-$0.11) per kWh.1  Local businesses are adopting solar power due to its affordability and dependability, and more decentralized energy systems are anticipated to develop as battery storage becomes more affordable. This helps businesses because almost three-quarters of Pakistani companies face power disruptions.

Implications for Pakistan’s emerging economy

Since coal, oil, and gas generation have decreased during the past two years, Pakistan’s power sector’s carbon dioxide emissions have also decreased. This method can spread to developing nations with strong solar potential. Solar energy is already reasonably priced in Pakistan compared to grid energy, and it will only get more affordable as technology develops. The firms with fewer limitations on their energy use are more likely to grow faster, invest more and recruit more employees. Additionally, businesses can expand thanks to solar’s ability to lessen the need for national infrastructure. 

Pakistan’s solar revolution demonstrates how solar energy can enable people to take charge of their energy goals and assist Pakistan to get past infrastructure constraints. It closes the performance gap between advanced and developing economies in the energy transition while ensuring equity.