Pakistan adds 1.2 GW of net-metering capacity in H1

With no utility-scale projects set to come online this year, the growth of Pakistan's solar market is being driven by net-metering installations. There were over 4,000 new net-metering connections pending by the end of June, with regulatory bottlenecks contributing to a growing backlog.

Pakistan installed 1.2 GW of net-metering capacity across the first six months of 2025, according to figures from the Islamabad-based think tank Renewables First.

Cumulative net-metering capacity increased from 4.9 GW at the end of last year to 6.1 GW by the end of June. The growth rate is slower than that recorded during the second half of 2024, when 2.5 GW of net-metering capacity was added.

Rabia Babar, manager data for energy and climate at Renewables First, told pv magazine that while H1 2025 saw a surge in net-metering applications, the pace of issuance slowed. “As of June, over 4,000 new net metering connections were pending with various utilities, with regulatory bottlenecks contributing to a growing backlog,” Babar explained.

Babar suggested that streaming net-metering processes will be integral to reducing the backlog and accelerating system installations. She also recommended that tariff structures to be clarified and finalized to “provide much-needed certainty for solar adopters.”

The government of Pakistan recently proposed a revision to its net-metering policy, aimed at reducing the buyback rate from PKR 27 ($0.096)/kWh to PKR 10/kWh. Babar said that while no formal changes to the payback rate have yet been made, the planned reduction has contributed to a drive in applications.

Figures from Renewables First predict that if the second half of this year brings an average monthly addition of 300 MW in new net-metering capacity, the total figure could reach 8 GW by the year's end. “This projection far exceeds the government’s estimate of 5.8 GW, a milestone already surpassed in H1 2025,” Babar said.

While the net-metering sector continues to grow in Pakistan, the utility-scale segment remains stagnant. No utility-scale projects came online in Pakistan during H1 2025, and no new projects are expected to go live in H2 2025, leaving installed utility-scale solar at 780 MW.

Meanwhile, a proposed 18% tax on solar panel imports announced during the first half of the year has been revised to 10%. Babar told pv magazine the plan initially prompted a sharp rise in panel imports and created market uncertainty.

“During H1 2025, solar panels with an estimated capacity of 12.7  GW were imported into Pakistan, slightly above the 11.4  GW imported in H1 2024,” Babar explained. “As these panels are installed in the coming months, a notable increase in solar capacity is expected.”