Pakistan Witnesses 4 GW Milestone in Net-Metering Solar Capacity

According to Afia Malik, a senior research economist at the Pakistan Institute of Development Economics (PIDE), by December 2024, Pakistan's on-grid, net-metered solar capacity had reached approximately 4.1 GW. This capacity serves 283,000 consumers across domestic, commercial, industrial, and agricultural sectors. Malik ascribes the "substantial upsurge" in capacity-which has grown from just over 1.3 GW in June 2023-to the increasing grid electricity prices and the declining costs of solar panels.

Malik also pointed out a remarkable growth in off-grid solar, even though there are no officially verified statistics yet. She elaborated, "The scale can be inferred from the fact that Pakistan imported 13 GW worth of solar modules from China in 2024."

This year, the total installed grid-level capacity in Pakistan is projected to reach 680 MW. Malik noted that industries and commercial entities are investing in solar energy, aiming to cut costs and guarantee a stable electricity supply.

To this day, the installed industrial solar capacity, covering both in-house and captive solar installations, ranges from 3 GW to 4 GW, with the majority of them not being net-metered. Malik mentioned that the net - metering policy changes scheduled for this month might marginally slow down the growth of on - grid net - metering consumers, but the distributed generation initiatives will carry on.

Malik stated, "Once the amended net-metering policy (which essentially turns into net-billing) is implemented, the decreasing costs of battery energy storage systems will be crucial in driving the demand for solar PV. Off-grid and hybrid energy solutions are also becoming more popular in remote areas and will continue to do so in the future."

She further said that, spurred by both on - and off - grid distributed generation projects as well as provincial - level utility - scale initiatives, Pakistan's solar capacity will continue to expand significantly this year and next. "By 2026, on-grid rooftop solar power is anticipated to reach 6 GW. However, the growth of off-grid solar PV will be much more rapid," she predicted.

Among the prominent large-scale renewable energy auctions in Pakistan last year were 150 MW of solar projects in Baluchistan, located in southwestern Pakistan. Malik said these projects, managed by the Pakistani utility company K-Electric, were awarded at a tariff of $0.039 per kWh. K-Electric also held a 220 MW solar and wind hybrid auction, where Canada's JCM Power submitted the lowest tariff bid in the country at $0.0309 per kWh.

Malik emphasized that grid modernization and optimization are fundamental for incorporating renewables into Pakistan's energy system. "Renewable energy in Pakistan has long been hampered by inconsistent policies. Consistent and effective policy-making, including legislative measures, financial incentives, and a well-developed tariff structure to promote efficient energy utilization, can facilitate the widespread adoption of solar PV," she added.

As detailed in its 2030 emission reduction plan, Pakistan aims to cut greenhouse gas emissions by 50% by transitioning around 60% of its energy mix to renewables.