PVTIME – Analysis from the UK-based energy think tank Ember confirms that Pakistan’s energy landscape has undergone a profound transformation in the last two years, with the installation of 27GW of new distributed photovoltaic capacity. This substantial rollout of renewables has increased the country’s overall electricity demand by 21%, with the full 33TWh rise in power requirements between fiscal years 2023 and 2025 being met entirely by distributed solar generation. National solar output surged from 15TWh in 2023 to 51TWh in 2025, marking a threefold increase.
Meanwhile, conventional grid power generation declined by 3%, driving distributed solar’s share of Pakistan’s energy mix up from 10% to 28%. This expansion of clean energy has coincided with 5.2% national GDP growth and significantly improved domestic electrification rates. Pakistan’s level of electrification has risen by 5 percentage points within two years to reach 21.7%, approaching the global average of 22%, whereas the worldwide average has only increased by 0.8% over the same timeframe.
Ember’s research confirms that the 27GW of newly added distributed PV capacity is equivalent to the total installed capacity of all fossil fuel power plants ever built in Pakistan. The rapid deployment speed and cost efficiency of the technology have enabled it to reshape the country’s energy system on an unprecedented scale. Insights from Ember’s lead analyst suggest that Pakistan’s solar boom could serve as a model for other developing countries, showcasing the potential of low-cost clean energy to meet suppressed power demand and provide significant economic benefits despite challenges in the fossil fuel market.
The rapid expansion of distributed solar has helped Pakistan save over USD 120 billion in oil and gas import costs by 2026, while underpinning stable growth across the nation’s agricultural, industrial, and commercial sectors. Joint data from Ember and Renewables First puts Pakistan’s total distributed PV capacity at 38GW, with cumulative solar module exports from China reaching approximately 47GW by June 2025.
Multiple factors have fuelled the expansion of small-scale domestic solar installations. The 2022 European energy crisis triggered global power price hikes and domestic grid supply shortages. This was complemented by a historically generous national net metering policy that strongly incentivised solar adoption until recent adjustments were made to it. Despite this policy support, however, net-metered solar systems constitute only a small proportion of Pakistan’s PV fleet, with off-grid solar installations holding a far larger market share.
Sustained power tariff increases were driven by prior state investment in expensive conventional energy infrastructure in the 2010s, prompting widespread consumer adoption of off-grid solar solutions. Data from industry monitors shows that Pakistan’s national grid electricity demand fell by more than 17% in August 2024 compared to the same period in 2023. This reflects a fundamental shift in consumer energy consumption habits, as well as a growing reliance on decentralised renewable alternatives, which are used to mitigate grid instability and high energy costs.
Scan the QR code to follow PVTIME official account on Wechat for latest news on PV+ES
