- Boom in renewable energy has protected seven million households and many big businesses against energy price shocks and geopolitical risk, think tank Renewables First says
A recent study reveals that Pakistan brought in more than 50 gigawatts of solar panels valued at approximately $18 billion over the last five years, matching the country's total electrical grid capacity. While this surge in clean energy generation shielded seven million domestic consumers and major corporate entities from fluctuating power costs and global market risks, it simultaneously drove up utility costs for lower-income households and smaller enterprise operations that lack the capital or roof space to transition off the central grid.
Speaking at the Karachi School of Business and Leadership during the release of the "Mapping Pakistan’s Distributed Energy Finance" report, Renewables First representative Ahtasam Ahmad warned that state officials and power plant operators have a narrow window of three to five years to lower central grid electricity costs. Ahmad noted that while solar consumers currently utilize grid electricity during peak morning and evening hours, the rapid adoption of lower-cost energy storage units threatens to render the utility network largely obsolete for thousands of solar-equipped users, which could intensify financial strains on the grid.
Grid-derived electricity costs have ballooned as falling power demand forces remaining consumers to absorb growing fixed capacity payments for idle generation facilities and accumulating circular debt. Industry observers at the event highlighted that emerging battery technologies, such as sodium-based systems that currently sell at about half the price of standard lithium units, are anticipated to accelerate grid defection by making round-the-clock off-grid power economically viable.
Out of the imported equipment, research indicates that 38 gigawatts worth $13.6 billion were actively operating in Pakistan by 2025, with an estimated 10 to 12 gigawatts held in vendor inventory or deployed in remote districts. The active deployments are led by residential installations at 16.6 gigawatts, accounting for nearly 44% of operational capacity, followed by industrial setups at 9.9 gigawatts, commercial sites at 8.1 gigawatts, and agricultural applications at 3.3 gigawatts.
Despite significant total capacity additions, energy experts emphasized that the shift remains unevenly distributed, benefiting wealthy property owners and major commercial ventures while excluding low- and middle-income families alongside small and medium enterprises. Renewables First official Naveen Ahmed pointed out that while domestic commercial banks hold $140 billion in general deposits, formal financial institutions have issued roughly $300 million toward distributed solar loans, citing collateral demands as the primary barrier preventing lower-tier consumers from servicing loans through monthly utility savings.
To address structural funding constraints, KSBL Insight Lab lead Mutaher Khan recommended that banking institutions establish specialized reporting channels dedicated exclusively to green energy loans rather than grouping them under broad sector-wide credit metrics. Meanwhile, participating sector specialists, researchers, and financial representatives noted that the central grid network is projected to remain operational despite continuing reductions in consumer reliance driven by elevated utility tariffs.
Originally reported by brecorder.com on Apr 25, 2026.
