Solar energy condition in Pakistan

Exactly how much solar electricity does Pakistan produce? According to the International Renewable Energy Agency (IRENA), Pakistan’s total solar installed capacity was 1,244 megawatts as of 2023, an increase of 17% compared to 2021.    And whereas the plural of account is not data, there does appear to be a few show this much: solar electricity in Pakistan may not be a prevailing source of power however, but is already big commerce, and is likely indeed greater than we know so far. Solar energy condition in Pakistan.

Solar import in 2024

In 2024, there was a notable rise in the importation of solar panels in Pakistan, mainly sourced from China. The nation acquired around 15 gigawatts (GW) of solar panels worth $2.1 billion during the fiscal year, showing considerable growth compared to prior years.

This spike in imports was mainly fueled by a 155% increase in electricity rates over the last three years, leading high-consumption households and businesses to look for alternative energy options. 

To address the escalating demand for renewable energy, the Pakistani government introduced substantial tax incentives in the federal budget for 2024-25. These incentives encompass tax breaks on the importation of equipment, machinery, raw materials, and components utilized in the manufacturing of solar panels, inverters, and batteries. The goal is to enhance domestic production and lessen dependence on imports. 

Nonetheless, the swift uptake of solar energy has raised concerns regarding its effect on the national power grid. The growing transition to solar solutions by enterprises and wealthy households has diminished the demand for grid electricity, which could worsen the financial difficulties faced by the already burdened power sector. 

Solar Import in 2023

The secret starts with a single number: in the calendar year 2023, Pakistan imported $1 billion worth of solar panels, about all of them from China.  Many grid-scale solar power plants are currently being set up in Pakistan, and all of them combined should not require anywhere near $1 billion worth of imported solar panels to complete construction.

Meanwhile, information from the National Electric Control Regulatory Authority (NEPRA) shows that while solar power is among the fastest-growing sources of power in Pakistan, it is no place about as enormous as to justify those sorts of numbers for imports, especially at current costs, when one can import solar panels from China for as small as $0.11 per watt.

So, what is happening? Is the government right that the control consumption information for the national grid is declining since more and more people are moving off the grid and using their solar panels? Or is the information that shows that rooftop solar is still a very small niche in Pakistan the correct view?

Conclusion 

The solar energy industry in Pakistan is growing quickly, propelled by increasing electricity prices and higher imports of solar panels, mostly from China. The government is implementing measures to encourage domestic production and decrease reliance on imports. Nonetheless, the transition to solar energy is putting pressure on the national grid by reducing the need for conventional energy sources. The actual extent of solar energy usage is unclear, with differing statistics on rooftop solar setups.

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