Pakistan becomes 3rd largest importer of solar panels from China as it quickly moves towards green energy.
Pakistan has quickly become one of the largest markets for solar energy, joining top solar consumers within just two to three years.
As reported by the World Economic Forum, during the first half of the current fiscal year, Pakistan imported 13 gigawatts of solar panels, making it the third-largest global importer of Chinese solar panels.
This increase in solar panel imports has significantly enhanced Pakistan’s renewable energy sector. Solar panel imports now account for more than 30% of the country’s total production, which reached 46 gigawatts in 2023.
The growing demand for solar energy among domestic consumers and businesses aiming to lower electricity bills has been a major factor driving this growth. Furthermore, a 90% decrease in solar panel prices over the last decade has accelerated the shift toward solar power.
The government has played an essential role by removing a 17% sales tax and implementing a net metering policy, which has expedited the solarization process.
The surge in electricity prices, compounded by imprudent agreements with Independent Power Producers (IPPs), has further increased the need for alternative energy solutions.
The Institute for Energy Economics and Financial Analysis reports that Pakistan made capacity payments of 6 trillion rupees ($21.5 billion) between 2019 and 2023.
The transition to solar energy has alleviated the financial strain caused by imported coal plants and has had a positive environmental impact.
This shift to solar power has improved energy security, created jobs, attracted foreign investment, and promoted environmental sustainability.
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