A GREAT solar rush across Pakistan is transforming the nation’s energy landscape. Households and businesses are rapidly switching to solar energy for a cheaper and reliable power supply. With 22 GW of solar panels imported in the last 18 months, the country is going through a massive shift from grid to rooftop solar solutions. It is heartening to note that both the federal and provincial governments are striving to keep up with the change to enable this shift through various initiatives. While Sindh has led the distribution of solar equipment among its citizens, the free solar panel scheme for low-income households consuming up to 200 units a month is the first initiative of its kind in Punjab. As many as 47,182 systems of 0.55 kW and 47,301 systems of 1.1 kW will be installed under the scheme. Likewise, the national food security ministry is implementing a Rs201bn project for converting tube-wells to solar power. These initiatives are aimed at protecting consumers from soaring electricity prices that most households and businesses can no longer afford.

While the solar momentum being generated by rising demand and government-financed projects is welcome, it must be supported by a well-designed policy to offset the possible, near-term negative impacts of this shift. For example, the shift from national grid to rooftop solar is already believed to have contributed to reduced consumption of grid electricity and higher per unit rates for those who have not yet switched to off-grid solutions. Similarly, the solarisation of tube-wells is said to be impacting fast-dwindling aquifers, threatening agriculture and food security. Pushed by economic factors, the demand for solar solutions will rise further. No matter how advantageous the shift towards solar power is on account of its contribution to reduced carbon emissions and a cheaper alternative for consumers, it can have some unintended consequences for the broader economy if not regulated under a well-thought-out policy framework.

Published in Dawn, March 5th, 2025