Net-metering drives 1.2 GW of growth in H1 2025, while utility-scale stagnates

Pakistan’s solar market added 1.2 GW of new net-metering capacity in the first half of 2025, pushing cumulative installations to 6.1 GW — up from 4.9 GW at the end of 2024, according to local energy reports. The increase reflects a growing shift toward decentralized energy systems as large-scale project development stalls.

No utility-scale solar projects were commissioned during H1 2025, with no new additions expected by year-end. This leaves installed utility-scale capacity at just 780 MW. In contrast, residential and commercial rooftop systems are accelerating adoption, driven by energy access demands and rising interest in self-generation.

However, the sector faces mounting challenges. By June, more than 4,000 net metering applications were awaiting approval across multiple utilities, as procedural and regulatory delays continue to cause a significant backlog. Compounding the uncertainty, the Pakistani government has put forward a proposal to modify the net metering framework by reducing the feed-in tariff from PKR 27 ($0.096)/kWh to PKR 10/kWh. While the revised rate has yet to be formally enacted, the prospect of diminished returns has already motivated a surge in submissions. In addition, an earlier proposal to impose an 18% tax on imported solar panels—subsequently revised to 10%—prompted a temporary spike in imports and stirred concern across the market. These evolving policy dynamics have spurred a wave of installations, as system integrators and consumers seek to lock in current benefits before potential changes take effect.

Despite policy headwinds, hardware demand remains robust. Pakistan imported an estimated 12.7 GW worth of solar panels in H1 2025, slightly up from 11.4 GW in the same period last year. These panels are expected to contribute to strong rooftop deployment momentum in the coming months.

Qn-SOLAR Industry Insight

Pakistan’s rooftop solar boom reflects a broader regional trend toward distributed, flexible energy models. As policy landscapes evolve, success will depend on system reliability, high-efficiency modules, and adaptability to diverse installation scenarios — including space-constrained urban rooftops and hybrid grids.

Qn-SOLAR remains committed to enabling this transition by supporting partners with optimized photovoltaic solutions — including low-light performance modules and high-output systems tailored for behind-the-meter deployment.