‘Investing in alternative sources to realise economic growth’

Published on: January 19, 2026 8:14 AM

Khayam Khan, a 35-year-old resident of Nowshera, finally got relief from prolonged load shedding after installing a 10kW solar system on his house rooftop.

“We were suffering from up to 18 hours of power outages daily. I had no choice but to take out a loan to install solar panels to provide relief to his family during the oppressive weather,” he told APP.

“Now, not only do we run all our household appliances including air conditioners and refrigerators but we’re even generating surplus electricity, which we sell to our neighbours for profit.” Though the initial investment was substantial, Khayam said it quickly paid off. His electricity bills plummeted from Rs. 40,000 a month to virtually zero. “It’s peace of mind. I feel like we’ve taken control of our power,” he said, underscoring a growing trend of energy independence in both urban and semi-urban Pakistan.

This consumer-driven shift towards solar power is accelerating in KP. According to Global Electricity Review 2025, Pakistan imported 17 GW of solar panels in 2024-twice the volume imported in 2023-making it the largest importer globally. The shift is driven by a mix of rising electricity tariffs, unreliable grid power, climate consciousness, and improved affordability of solar technologies.

Pakistan’s energy mix has historically relied on fossil fuels and hydropower. However, the federal government has undertaken serious reforms to diversify its energy portfolio by promoting renewable energy sources. Prof Dr Zilakat Malik, former Chairman of the Economics Department at the University of Peshawar, explained that rising power consumption has made diversification essential. Solar energy, backed by technological advancements and declining costs, presents one of the most viable options for large-scale energy production in Pakistan. He said Govt need to focus on solar, wind, coal and other energy resources for economic growth.

Dr Malik said the economic advantages of solar, including lower production costs for industries, improved productivity, and reduced exposure to global energy price volatility. “Solar power supports SMEs by ensuring reliable electricity and contributes to GDP growth by reducing reliance on expensive thermal power,” he said. The Renewable Energy (RE) Policy 2006 laid the foundation for Pakistan’s renewable journey, encouraging private sector investment and introducing net-metering regulations in 2015.

As a result, more than 302,409 net-metering connections have been established, with a combined generation capacity of 4,492 MW, according to NEPRA. Under the National Electricity Policy 2021 and National Electricity Plan 2023-27, the government aims to achieve 60% of electricity generation through indigenous clean energy sources by 2030.

Khyber Pakhtunkhwa is spearheading large-scale solarization projects. Engr. Tariq Sadozai, former Adviser to the Chief Minister on Energy, revealed that two mega projects worth Rs. 55 billion are underway.

These include solarizing 13,000 public buildings and providing solar units to 130,000 low-income households, half of which will receive them free of cost. MoUs have been signed between the Bank of Khyber and the Pakhtunkhwa Energy Development Organization (PEDO) for financing and implementation. Public institutions such as hospitals, schools, and police stations will be solarized to cut long-term operational costs and ensure uninterrupted power.

Hamza Khan, President of PML-N Nowshera, emphasized that the federal government under Prime Minister Shehbaz Sharif is fully backing the renewable energy. “From tax exemptions to net metering, the policy environment has made it easier for individuals and businesses to invest in solar energy,” he said.