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

The energy sector of Pakistan has always been kind of a problem child for the country. And electricity has never come at a cheap cost. We may not be living through the 2010’s heavy load shedding era anymore but we are still not out of the belly of the beast. Now we have a new problem: expanded electricity generation capacity, which seemingly sounds like a positive development, but one that has thrown Pakistan into a financial crisis. 

Why? Well, because the demand for electricity has not kept up with the rising generation capacity. 

While some who can afford solar panels may have found a loophole to generate their own electricity, it is partly the cause of this current crisis. 

The unprecedented growth in rooftop solar adoption and a surge in net-metered connections, the solar boom represents both a disruption and an opportunity, with wide-ranging implications.

Renewables First’s Pakistan Electricity Review 2025 reveals that the sector has undergone significant transformation over the past two decades, yet, it continues to grapple with challenges that threaten its sustainability and the broader economy.