Solar Owners Save Rs. 90,000 Monthly

Rooftop solar systems in Pakistan are proving to be a cost-effective solution for households as escalating electricity tariffs drive demand for net metering and off-grid solutions. A standard 10-kilowatt rooftop solar system is projected to recover its initial investment within 2.5 to 4 years. A 10 kW rooftop solar system can produce approximately 1,200 to 1,500 units of electricity per month, contingent on geographical location and seasonal factors, according to a study.

This substantial generation potential can markedly diminish a household's reliance on the national grid. Households paying electricity tariffs ranging from Rs. 45 to Rs. 60 per unit could potentially save between Rs. 50,000 to Rs. 90,000 monthly through solar power utilization for their own consumption. Additional savings may stem from surplus electricity exported to the grid under net metering arrangements.

For instance, a household utilizing around 1,200 units monthly and generating 1,400 units via a 10 kW system could export 400 units, contributing to an estimated monthly benefit of Rs. 55,000 to Rs. 60,000. The upfront cost of a 10 kW system currently varies between Rs. 1.5 million to Rs. 2.2 million, contingent on equipment quality and installation standards.

Over a 20 to 25 year lifespan, consumers could potentially save between Rs. 15 million to Rs. 25 million, as per industry estimates. Solar net metering capacity in Pakistan has surged significantly, reaching approximately 7,000 MW by June 2026, roughly 37 times its level from six years prior. This rapid expansion has prompted the government to pivot its policy emphasis from net metering to net billing due to financial and technical challenges faced by the national grid.

Net metering permits consumers to utilize the electricity generated by their solar systems while simultaneously sending excess power to the grid in exchange for credits offset against their electricity bills. However, future returns may be influenced by potential modifications to net metering regulations and power purchase rates determined by the National Electric Power Regulatory Authority and the Power Division.

Solar and off-grid systems now constitute around 20,000 MW of generation capacity, generating a daytime "duck curve" that can exert additional strain on the power system, particularly during winter when electricity demand patterns undergo changes. The surge in solar adoption has been propelled by a combination of higher electricity prices, increased electricity tariffs, and falling solar panel import costs.

The Pakistani rupee has depreciated by approximately 75%, electricity tariffs have risen by nearly 140%, and solar panel import prices have declined by around 60% between FY2021 and FY2025. The market is also gravitating towards larger battery systems, with 14 to 16 kWh units gaining popularity as consumers prioritize greater self-consumption and protection against power outages and potential future tariff hikes.

The government is actively promoting battery energy storage systems to alleviate pressure on the national grid, particularly during winter months.