Lahore:
The energy sector of Pakistan is at a critical moment, because a growing discrepancy between political orientation and implementation threatens to derail the transition of the country’s own energy.
Although the government has once defended solar facilities on the roof as a long -term solution to the increase in electricity costs and energy insecurity, it now reverses the course – in particular in the clear measurement regime – leaving citizens and the business world calling into question the commitment of the state towards renewable energies.
The demand for electricity in the country oscillates approximately 29,000 megawatts (MW) in summer, while the production capacity installed exceeds 46,000 MW. However, the generation remains ineffective due to the underuse of the capacity, the poor infrastructure of the network and the increasing dependence on imported fuels. Solar energy, formerly considered as a promising alternative, is now faced with political obstacles despite the contribution of around 5% of the total electricity production of Pakistan in 2025.
Solar installations, in particular roof systems, increased between 2022 and 2024 while households and businesses invested in the net, attracted by generous redemption rates and government incentives. According to official data, the clear-hetera capacity increased from just over 300 MW in 2021 to 2,813 MW by the end of fiscal year 25, with more than 280,000 households recorded as part of the program. But the recent government’s recent decision to reduce the redemption rate from RS27 to RS10 per unit sent shock waves to the solar community.
“The solar transition, formerly considered a cornerstone of the energy future of Pakistan, is now treated as a drawback,” said Mian Sohail Nisar, chief boss of industrial Pakistani associations and traders. “The government has encouraged this change but now refuses to integrate it into the formal energy system from a long -term point of view. This type of political inconsistency undermines both investors and public confidence.”
Energy experts argue that the revised net measurement policy stems from increasing financial pressure on the national network. Solar users reducing their dependence on the electricity of the network and selling a surplus of power at high rates, public service companies claim that they have trouble covering fixed infrastructure costs. In 2024 alone, the cost burden moved to consumers dependent on the network was estimated at RS159 billion. The projections suggest that this imbalance could reach more than 4,000 billion rupees during the next decade if it is not controlled.
A former energy sector official said that the problem was not solar energy, this is a bad planning. “The government has failed to upgrade the distribution network to manage the opposite power flows. Now, they blame the solar users for losses that are actually rooted in poor technical management and obsolete infrastructure.”
He thinks that the new gross measurement model, which charges users separately for imported and exported electricity, can have merit in principle but has been introduced too suddenly. “Politicians like these should be progressive with the consultation of stakeholders. Instead, we see an instinctive reaction to financial tension, which could discourage future investments in clean energy.”
Consumers who have installed solar panels under the encouragement of the previous government feel betrayed. Many have invested massively in hybrid inverters and storage of batteries, hoping to reduce their dependence on the electricity of the network and benefit from favorable net measurements. Now they fear reducing yields, uncertain billing structures and even the secret replacement of intelligent meters with distribution companies.
The inconsistency of energy policy is not new. Over the past two decades, successive governments have announced ambitious plans, whether for hydroelectricity, LNG terminals or renewable energies, to abandon or reverse them because of the evolution of political climates, the pressure of public service companies or the reforms requested by the International Monetary Fund (IMF).
Energy analyst Syed Farid Hussain said the greatest failure is the absence of a unified transitional roadmap. “You cannot expect a successful change to clean energy without aligning the grid upgrades, pricing mechanisms and consumer protection. Fragment reforms are not a strategy.”
He added that with the circular debt of Pakistan in the electricity sector crossing RS2.6 Billions, the pressure rises on the state to increase prices or reduce losses. Unfortunately, instead of reforming ineffectiveness in distribution companies or to attack power, the government seems to impose the burden on solar adopters, those who have taken into account its own advice, he said.
A structural approach is the need for the hour, an approach that cannot be reversed in a few years for any reason. “Pakistan does not need policies; it needs energy clarity. Without that, we risk repelling the very solutions that could fuel our future,” added Sohail Nisar.
