Electricity prices in Pakistan have surged by a staggering 155 percent over the past three years, prompting a growing number of consumers to switch to solar energy, according to a new report by the Competition Commission of Pakistan(CCP).
The report on Pakistan’s solar energy sector highlighted that rising electricity costs combined with capacity payments and depreciation of the rupee have significantly increased the financial burden on both households and businesses.
According to the findings, Pakistan has emerged as one of the leading solar panel markets in recent years. Installed solar capacity has reached approximately 35 gigawatts, while total solar panel imports have exceeded 50 gigawatts over the past five years.
The commission noted that the rapid shift toward solar energy is largely driven by consumers attempting to escape soaring electricity bills. In some areas, monthly power bills have reportedly surpassed house rents, further accelerating the transition.
However, the report also raised concerns about the sector, pointing out that a significant portion of solar installations remains undocumented. Additionally, the widespread use of substandard solar equipment poses risks to consumers and undermines market stability.
To address these challenges, the CCP has recommended urgent upgrades to the national transmission system, introduction of smart metering, and increased grid automation. It also emphasized the need for faster implementation of competitive electricity market reforms and stricter enforcement against low-quality solar products.
The report further warned that climate-related economic losses in Pakistan could rise sharply, potentially reaching up to 6 percent of GDP by 2050. At the same time, it stressed that the country’s solar energy potential remains far greater than its current electricity needs.
