Pakistan Reaches 5.3 GW in Net-Metering Capacity by April 2025

By the end of April 2025, Pakistan’s net-metering capacity had reached 5.3 GW, according to the Islamabad-based think tank Renewables First. This marks continued expansion from over 4 GW in 2024, with the capacity standing at 4.9 GW by the end of March 2025, as detailed in Renewables First’s Pakistan Electricity Review 2025.

Rabia Babar, Manager of Energy and Climate Data at Renewables First, confirmed  that the milestone of 5 GW was surpassed last month.“There are many applications still pending approval at the utility level,” Babar said. “As these connections are activated, the total is increasing daily.”

Looking ahead, Babar said the government is expected to review the current net-metering policy, potentially lowering the buyback rate. While such a move could dampen solar deployment, it may also drive adoption of energy storage systems for use during peak consumption hours.

Muhammad Mustafa Amjad, Programs Director at Renewables First, observed that fears of regulatory changes have spurred a rush of installations.“Currently, net-metering agreements last for seven years, so people have been hurrying to secure contracts before any reduction in the buyback rate is implemented,” Amjad added.

He added that a significant drop in buyback rates could push battery-equipped users to disconnect from the grid altogether—a challenge for a country already experiencing a steady decline in grid electricity consumption over the past two years.

Amjad emphasized that Renewables First supports policy revisions that continue to incentivize grid usage while keeping electricity affordable for the broader population.“The rate needs to remain competitive with solar-plus-battery setups, but not be reduced to the point where it discourages grid consumption entirely,” he said.

Pakistan’s solar industry has also witnessed a dramatic increase in panel imports. In the 2024 fiscal year, the country imported 16 GW of solar panels—a 227% increase from the 4.9 GW imported the previous year.

To date, Pakistan has imported a cumulative 36 GW of solar panels from China, accounting for approximately 78% of the nation’s entire power generation capacity. This influx has significantly boosted both on-grid and off-grid solar installations, with rooftop systems playing a particularly important role in meeting energy demands.

Amjad stated that this momentum has continued into the current fiscal year. “With two months left, we’ve already imported another 15 GW of panels, so we’re on track to surpass last year’s figures,” he said.

Rising electricity tariffs and short payback periods—typically between three to five years—across all consumer segments have further accelerated solar adoption.

“Most systems are installed off-grid, behind the meter,” Amjad explained, “giving people reliable alternatives to grid electricity, especially during outages or supply shortages.”