In the first half of 2025, Pakistan added 1.2 GW of net-metering capacity, increasing the cumulative capacity from 4.9 GW at the end of last year to 6.1 GW. However, the growth rate slowed compared to the 2.5 GW added in the second half of 2024. Regulatory bottlenecks led to a worsening backlog, with over 4,000 new connections pending by June, highlighting market challenges.

Rabia Babar, Data Manager at Renewables First, noted a surge in net-metering applications but slower approvals, recommending process simplification and clarification of tariff structures to provide certainty. Meanwhile, the government’s proposal to reduce the repurchase rate from PKR 27 ($0.096)/kWh to PKR 10/kWh, though not formally implemented, has prompted increased applications. If an average of 300 MW is added monthly in the second half, the year-end total capacity could reach 8 GW, significantly exceeding the government’s estimate of 5.8 GW.

Additionally, utility-scale solar projects stagnated, with no new projects launched in the first half and none expected in the second half, maintaining the capacity at 780 MW. The solar panel import duty was revised from a proposed 18% to 10%, resulting in 12.7 GW of panels imported in the first half of 2025, slightly higher than the 11.4 GW in the same period of 2024. Solar capacity is expected to rise significantly in the coming months following installations.
url:https://www.pv-magazine.com/2025/08/06/pakistan-adds-1-2-gw-of-net-metering-capacity-in-h1/