Pakistan’s solar revolution: the paradox of too much supply

Pakistan’s energy sector has long faced significant challenges. Electricity has never been cheap, and although the era of heavy load shedding in the 2010s may be behind us, the sector remains far from stable. Today, a new challenge has emerged: expanded electricity generation capacity. While this growth might seem positive, it has inadvertently contributed to a financial crisis for the country.

Why is this happening? Electricity demand has not kept pace with the rapid increase in generation capacity. Many households and businesses that can afford solar panels are now generating their own power. This partially alleviates grid demand but also places financial stress on traditional utilities.

The unprecedented rise in rooftop solar adoption and net-metered connections represents both a disruption and an opportunity, with far-reaching implications for Pakistan’s energy landscape. For a deeper look into this solar revolution, see Renewables First coverage.

According to Renewables First’s Pakistan Electricity Review 2025, the sector has undergone significant transformation over the past two decades. However, structural challenges remain that threaten both the sector’s sustainability and the broader economy.