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Pakistan's 38 GW Distributed Solar Saved $12 Billion in Fuel Imports, Ember Says

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Distributed solar is making major strides in Pakistan, driving significant socio-economic benefits in the process, according to a new report by Ember Energy.

The report estimates that Pakistan installed 27 gigawatts of distributed solar capacity between fiscal 2023 and fiscal 2025, taking total distributed solar capacity to 38 GW by June 2025.

Solar generation more than tripled over the period, rising from 15 terawatt hours to 51 TWh, enough to meet all of the country's 33 TWh increase in electricity demand as grid generation declined 3%.

The share of solar in the country's electricity mix has climbed to 28% from 10% just two years earlier.

The study also noted that this shift has transformed energy consumption across the country, with residential electricity demand up 32%, and industrial up 22%, while commercial and agricultural usage were up 39% and 34%, respectively, over this period.

Meeting Pakistan's power needs without the distributed solar would have required an estimated $12 billion in oil and gas imports through February 2026. Solar has reduced daytime load shedding and transmission losses and cut carbon emissions.

Residential solar systems equipped with medium-sized battery storage were generating electricity at PKR 20 ($0.072) per kilowatt-hour, which, according to the report, was half the cost of grid electricity and one-sixth the cost of diesel generation.

The report said Pakistan's solar expansion demonstrates how distributed renewable energy can rapidly accelerate electrification in emerging economies, although further investment in battery storage and grid infrastructure will be needed to sustain growth.

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