ISLAMABAD - Pakistan imported over 50 gigawatts (GW) of solar panels at an estimated cost of nearly $18 billion over the past five years-a volume equivalent to the country's entire national grid capacity, according to a new study released by the think tank Renewables First .
The report, titled 'Mapping Pakistan's Distributed Energy Finance' and launched at the Karachi School of Business and Leadership (KSBL), reveals that the solar boom has protected approximately seven million households and numerous large businesses against energy price shocks and geopolitical risks .
Of the over 50 GW of imported solar panels, the study found that 38 GW worth $13.6 billion were actively in use across the country as of 2025. The breakdown shows that residential households lead solar consumption, accounting for 16.6 GW-nearly 44% of total installed capacity. The industrial sector follows with 9.9 GW (26%), while the commercial and agriculture sectors account for 8.1 GW (21.3%) and 3.3 GW (8.7%), respectively .
The remaining 10-12 GW of imported panels are believed to be held in dealer warehouses or installed in remote areas, climate experts added .
Economic Impact and Energy Savings
The solar revolution has delivered substantial economic benefits. According to separate analysis by Renewables First and the Centre for Research on Energy and Clean Air (CREA), Pakistan has avoided over 12billioninoilandgasimportsoverthepastfiveyearsduetoitssolarexpansion,withpotentialadditionalsavingsof12billioninoilandgasimportsoverthepastfiveyearsduetoitssolarexpansion,withpotentialadditionalsavingsof6.3 billion expected by the end of 2026 .
Fossil-fuel imports fell 40% between 2022 and 2024, while cumulative solar panel imports rose from under 1 GW in 2018 to more than 51 GW by early 2026 . Solar now supplies up to 25% of daytime grid electricity in major cities, according to energy analysts .
Challenge of Unequal Access
Despite the remarkable growth, the transition to clean energy has been "deeply unequal," the study warns. Access has been almost entirely concentrated among high-income households and large businesses-those who can absorb high upfront capital costs without financing support .
Low-to-middle-income households and small-to-medium enterprises (SMEs), which contribute nearly 40% to Pakistan's economic growth, have been largely left behind. The study noted that while Pakistani banks manage deposits worth approximately 140billion,theformalfinancialsectorhasextendedmerelyaround140billion,theformalfinancialsectorhasextendedmerelyaround300 million in financing for solar systems .
"The gap in financing is not a result of insufficient capital in the system, but structural weaknesses in credit intermediation," said Naveen Ahmed, Green Finance Lead at Renewables First .
Future Outlook
Ahtasam Ahmad, Energy Finance & Climate Tech Lead at Renewables First, warned that the government and power plants integrated into the national grid have roughly three to five years to make grid power affordable. "The upcoming cheaper battery storage systems are going to make the national grid almost completely irrelevant for hundreds of thousands of households and businesses running on solar power," he said .
As battery storage costs continue to decline-with sodium-based batteries reportedly costing nearly half that of lithium batteries-the trend toward energy independence is expected to accelerate further, potentially deepening the financial crisis for Pakistan's already struggling power sector .
