Pakistan's Solar Revolution: How the Middle Class Is Being Left Behind

In the sweltering April heat, Saad Saleem, an affluent entrepreneur, comfortably blasts his air-conditioning. Despite rising electricity tariffs, Saleem remains unaffected, thanks to his $7,500 investment in solar panels two years ago. His decision came amid Pakistan’s negotiations for an IMF bailout, which led to sharp increases in power and gas prices, pushing many Pakistanis to seek alternative energy sources like solar.

As a result, solar energy now accounts for more than 14% of Pakistan’s power supply, up from just 4% in 2021, displacing coal as the third-largest energy source. This shift places Pakistan ahead of many regional peers, including China, the global leader in solar energy. The rapid adoption of solar energy is one of the highest in Asia, according to data from UK energy think-tank Ember.

However, this solar boom has not been universally accessible. While affluent individuals like Saleem benefit from cheap, renewable energy, many in Pakistan’s urban middle class are being left behind. Apartment dwellers, especially those in Karachi’s densely populated areas, have limited space for solar panels. With skyrocketing electricity costs, many families have cut back on power consumption. Only 1% of consumers in Pakistan used over 400 units of electricity in 2024, down from 10% before the pandemic, according to consultancy Renewables First.

The growing divide between those with access to solar energy and those without has further strained the national grid. Energy companies, losing their wealthiest clients, have had to hike prices for remaining consumers to cover operational costs. This has led to financial stress in the power sector, exacerbated by Pakistan’s debt obligations for coal-powered plants financed by China.

In response to this shift, Pakistan’s power minister Awais Leghari acknowledged the growing energy gap but highlighted the widespread adoption of solar in rural areas, where many previously had limited access to electricity. “Pakistan has actually gone through a solar revolution,” Leghari stated, emphasizing the country’s progress in transitioning to cleaner energy.

Despite these advancements, most solar installations are not connected to the grid, limiting the wider benefits of solar power. Less than 10% of solar consumers sell excess energy back to the grid, according to experts. High costs and regulatory delays are major barriers to grid integration, with connecting a solar system to the grid often taking months and requiring expensive equipment like inverters.

While businesses like Interloop, which operates in Punjab, have successfully harnessed solar energy, saving significantly on operating costs, the broader energy sector remains in turmoil. The fixed costs of power suppliers, such as fuel contracts and infrastructure upgrades, have been shifted to non-solar consumers, leading to higher prices.

Pakistan’s experience underscores a critical lesson: when governments fail to adapt to technological changes, individuals take charge. As solar power continues to grow in Pakistan, there is a pressing need for policies that ensure equitable access to clean, affordable energy for all citizens.