Pakistan’s Rapid Solar Growth Helps Cushion Energy Shocks amid Strait of Hormuz Disruption

Pakistan’s swift expansion of rooftop solar installations is helping shield the country from the worst impacts of global energy supply disruptions, including those linked to tensions around the Strait of Hormuz, according to a recent joint report by Renewables First and the Centre for Research on Energy and Clean Air. 

The study points out that the rapid uptake of distributed solar power has significantly reduced Pakistan’s dependence on imported oil and liquefied natural gas (LNG), avoiding more than $12 billion in fuel import costs since 2018. Savings could reach an additional $6.3 billion by the end of 2026 if the solar rollout continues at its current pace. 

Installed solar capacity in Pakistan has grown dramatically over the past few years, rising from below 1 GW in 2018 to over 51 GW by early 2026, driven by strong consumer adoption and supportive policies such as zero‑rated taxes on solar panel imports.   This growth has also helped moderate demand on the national grid and reduce reliance on imported gas — with LNG demand declining as more households, farms, and industries generate their own power. 

Without this surge in distributed solar deployment, analysts say Pakistan would have been far more vulnerable to price spikes and supply instability caused by geopolitical tensions in the Middle East. The report highlights that countries heavily dependent on oil and gas imports through the Hormuz shipping route — including Pakistan — continue to face exposure to global market volatility, even as solar adoption helps alleviate some of the pressure. 

The shift toward clean energy has been fueled not only by economics — including falling solar panel costs — but also by practical responses to repeated energy crises over recent years. The rapid pace of solar adoption has effectively acted as a hedge, reducing the need for load‑shedding and easing the impact of supply shocks during peak demand periods, the analysis shows. 

Looking ahead, experts say continued investment in renewable energy — particularly distributed solar — will be essential for strengthening Pakistan’s energy resilience and cutting long‑term exposure to external fuel price risks.