Solar Electricity is the largest source of power in Pakistan, surpassing natural gas, nuclear energy, thermal, and water power. By reaching 25% solar power production, Pakistan has proved to the world its vital potential for the renewable energy industry. According to the data revealed by the Energy Think Tank Ember, Pakistan has produced 25% utility-supplied electricity in 2025 so far through solar power. And therefore, the country is ranked as one of the 18 countries that produce 25% of their monthly electricity from solar. Here’s a quick look on the bar chart sourced from Reuters:
Import of Solar Components in Pakistan
China is the biggest exporter of solar components in Pakistan and the ratio has increased from 2% in 2022 to 7% in 2025. The year-on-year solar power production and the import of solar compnents has increased significantly. Ember stated that Pakistan imported 8,500 MW solar components from Jan 2024 to April 2024, however in the same 4-month period of 2025, Pakistan imported 10,000 MW solar components.
Thanks to the planet sun, the country receives abundant sunlight year-round. Also, due to the soaring electricity prices and climate change, more Pakistanis are turning to solar electricity as a clean, cost-effective alternative. From growing government initiatives to financing options from private banks, the solar panel industry in Pakistan is experiencing a significant boom. Here’s everything you need to know.
Free Solar Panels for 100,000 Consumers in Punjab
Most Pakistanis want to buy solar panels due to the expensive electricity, high bills, load shedding and unbearable summer. Therefore, the Punjab Government in Pakistan has launched Free Solar Panel Scheme 2025 to provide solar energy to domestic consumers. The eligibility criterion includes using 0-200 units of electricity in June 2024.
The CM Punjab free solar panels program will help people reach renewable energy and minimize the financial load due to higher electricity bills. You can register in this scheme to get free solar panels by visiting the portal: Chief Minister Punjab Free Solar Panel Scheme Portal.
Benefits of Solar Electricity in Pakistan
Pakistan is ideally positioned for solar power. With an average of 8–9 hours of sunlight per day, most parts of the country receive over 300 sunny days annually. This makes solar energy a highly reliable and sustainable solution for residential, commercial, and agricultural use.
Key Benefits of Solar Energy:
- Reduced electricity bills
- Low maintenance costs
- Long-term savings
- Energy independence
- Eco-friendly and emissions-free
New Tax on Solar Panels in Pakistan 2025
Despite growing demand, Pakistan still relies heavily on imported solar panels and inverters, mainly from China and Germany. However, a recent government decision under the budget 2025-26 to impose an 18% sales tax on imported solar panels has sparked concern among consumers and industry professionals. This tax will increase the overall cost of installing solar systems and will make affordability a challenge for middle-income households.
It will also slow down import activity in some regions, however, the government intends to promote the local solar industry by putting a tax on imported solar panels in Pakistan. Owing to the greater demand for solar systems and rising costs, some companies and banks have launched installment plans for solar systems.
Rising Electricity Prices in Pakistan & The Urgent Need for Alternatives
Pakistan’s electricity prices have increased dramatically in recent years, with frequent power outages and load-shedding making life difficult. Consumers are now exploring solar panels to escape these high bills and energy instability. The switch to solar helps reduce dependency on the national grid, avoids fluctuating tariffs, and offers access to uninterrupted power.
Solar Energy and Climate Change Effects on Pakistan
With the global focus on sustainability, solar energy helps Pakistan cut its carbon footprint. It’s a key player in combating climate change, reducing greenhouse gas emissions and promoting renewable resources. By going solar, households and businesses in Pakistan can play a crucial role in creating a cleaner future.
The solar panel market in Pakistan is expanding rapidly. From residential rooftops to large-scale solar farms, investments are pouring in. The government of Punjab has partnered with solar companies to distribute panels at subsidized rates, especially in rural and agricultural areas. Meanwhile, urban adoption is growing fast in cities like Lahore, Karachi, Islamabad, and Faisalabad.
Allied Bank Solar Financing – Go Solar Save Energy
In a promising move, Allied Bank has launched a solar energy financing scheme, allowing customers to buy solar panel systems on easy monthly installments. This step is a major relief for those who can’t afford upfront payments. The benefits of Allied Solar Energy System include flexible tenure, competitive markup rates, and direct partnership with certified solar providers. This initiative opens the door for more widespread adoption across Pakistan’s working class and salaried individuals. You can take a loan from Rs. 2 Lac to Rs 3 Lac to buy Solar Panels in Pakistan and pay the installments in 7 years. Get more details from the Allied Bank Website.
Need to Shift To Solar Energy in Pakistan
Solar energy is no longer a luxury, it’s a necessity. Pakistan has the vision to turn 60% of their electricity to solar by 2030. With expensive electricity, abundant sunshine, and climate urgency, the country is on the right track to fully embrace solar solutions in the future. Whether you’re a homeowner, business owner, or farmer, investing in solar panels today will protect your finances and the environment tomorrow. Stay tuned to 360 Buzzz for updates, reviews, and expert tips on clean energy in Pakistan.
