4.9 GW OF NET-METERED SOLAR CAPACITY INSTALLED BY MARCH 2025
ISLAMABAD - As of March 2025, 4.9GW of net-metered solar capacity had been installed, a number that doesn’t even include behind-the-meter setups, which remain untracked, said a review launched here. Pakistan Electricity Review (PER) 2025 covers Pakistan’s power sector performance during fiscal year 2024 (FY24), capturing the trends, decisions, and disruptions that shaped this critical year.
Renewables First presented the review around Pakistan’s power sector centered on a deepening crisis: falling demand, surging capacity payments, and an overstretched grid weighed down by inefficiency. It said that while many of the sector’s structural issues persist, from outdated planning to mounting circular debt, 2024 stood out for the sheer pace at which rooftop solar took off.
Driven by a record-breaking 16GW in solar PV imports from China, households and industries across the country installed thousands of systems in pursuit of cost relief and reliability. As of March 2025, 4.9GW of net-metered solar capacity had been installed, a number that doesn’t even include behind-the-meter setups, which remain untracked. It’s a quiet revolution, led not by state policy but by people taking energy into their own hands.
“This wasn’t just another year, it was a shift,” said Rabia Babar, Manager Data – Energy and Climate at Renewables First, at the webinar. “Consumers are telling us something, loud and clear: the system isn’t working for them, so they’re building their own.” But as more people turn to solar, the national grid, outdated, overloaded, and under-planned, is beginning to feel the pressure.
Transmission bottlenecks remain a major issue, especially in transferring power from southern generation zones to demand centers in the north. These limitations forced the system operator to fall back on expensive RLNG plants, driving up the energy purchase price.
The primary culprit is underutilized generation capacity, particularly from newly added coal and RLNG plants commissioned the previous year. During the panel discussion, the challenges of this new dynamic were brought into focus. The surge in rooftop solar has created momentum, but not without consequences. As the discussion unfolded, Dr Dinita from Ember Asia highlighted the encouraging trend of consumers driving the energy transition.
However, she emphasized that this bottom-up momentum must be complemented by strong top-down planning to ensure long-term sustainability. Citing examples from the Global South, she noted that “while countries like Thailand and Vietnam are making commendable progress in solar PV adoption, the pace and scale of growth in Pakistan remain unmatched in the region.”
Mentioning some of the challenges associated with DERs integration, Ernst Kuneman of Agora Energiewende, added that DERs can help defer costly investments. If DERs are deployed in a coordinated fashion, they can help reduce peak demands and can also contribute to removing congestion from the grid. As the review notes, the electricity sector remains under stress, but it’s not static, as households are acting, industries are shifting, and the cracks in the old model are becoming more visible.