Grid generation fell 3% as rooftop systems supplied all new electricity demand. Pakistan's electricity demand rose 21% in the two years to financial year (FY) 2025, with distributed solar meeting all new demand as grid electricity generation declined, according to a report published by Ember and…
Pakistan's electricity consumption increased by 21% over the two-year period ending in financial year (FY) 2025, while distributed solar generation satisfied the entirety of the additional electricity demand as power produced by the national grid declined, according to a new report released by Ember and Renewables First.
According to the report, electricity demand expanded by 33 terawatt-hours (TWh) between FY2023 and FY2025. The entire increase was supplied by distributed solar generation, which climbed from 15 TWh to 51 TWh during the period, representing more than a threefold rise. Meanwhile, electricity generated through the grid decreased by 3%.
The report found that distributed solar contributed 28% of Pakistan's total electricity generation in FY2025, compared with 10% recorded in FY2023.
It added that when transmission losses and electricity theft from the grid are factored into the calculations, distributed solar represented 32% of the country's total electricity supply.
Renewables First estimated that Pakistan had installed 38 gigawatts (GW) of distributed solar capacity by June 2025. Of that total, 27 GW was added during the previous two years, an amount equal to the combined generating capacity of every coal-, gas-, and oil-fired power plant currently operating in the country.
The rapid growth of distributed solar has also expanded electrification throughout Pakistan's economy, raising the electrification rate from 17% in FY2023 to 21.7% in FY2025, bringing it close to the global average of 22%.
"Pakistan has a thirst for energy, and solar is providing it," said Dave Jones, Chief Analyst at Ember. "Distributed solar is so fast and cheap to build, that it is actually driving up electricity demand."
The report stated that distributed solar has transformed electricity consumption across a range of sectors. Residential electricity demand increased by 32% over the past two years as households adopted more electrical appliances, especially cooling equipment.
During the same period, electricity demand from the industrial sector climbed by 22% as distributed solar installations expanded while gas consumption declined in response to higher fuel prices.
The commercial sector recorded the strongest increase in electricity demand, rising by 39%, with solar energy enabling businesses to better cope with escalating electricity costs and concerns over power supply reliability.
Within the agricultural sector, distributed solar replaced both diesel and grid electricity as the use of solar-powered tubewells expanded. The report estimated that this transition cut annual diesel consumption by approximately 1.9 billion litres.
"Distributed solar is providing millions of Pakistani homes, farms, and businesses with affordable, reliable electricity," said Nabiya Imran, Associate for Energy Insights at Renewables First.
Originally reported by Asian Power on Jun 26, 2026.
