The recent rapid rise in electricity bills has led the residents of Pakistan to invest in solar energy. A few years ago, solar panels were bought for industrial usage only, but in the past few months, as electricity prices per unit have skyrocketed, the usage of solar panels to save on bills has become common. Solar panel prices have fluctuated a lot in the past years, and with a rise in tariffs and import levies, the cost of solar equipment has also increased, making solar panels more expensive. Imported solar panels are also more costly due to the depreciation of the Pakistani rupee against foreign currencies such as the US dollar. The deteriorating financial condition of Pakistan has led middle-class residents to make decisions they would not have made in any other circumstance.
There is a large variety of solar panels at different prices for customers, and with their demand increasing, their prices have also become reasonable to a minor extent. It is also true that the prices of solar panels decreased in the past few months when several cities in Pakistan suffered from excruciating heat waves, making it difficult for people to survive without a reliable supply of electricity.
Types of Solar Panels Available in Pakistan
1kW Solar System (Small-Scale Use)
The cheapest option is a 1kW solar system, which is best for small-scale use. It provides up to 5 units a day, which makes around 150 units per month if it receives 5 hours of sunlight. Their price ranges from Rs 200,000 to Rs 250,000, including installation and components. It should be noted though, that the output provided by solar panels is highly dependent on weather conditions unless the solar panels have a battery system with high storage that can store energy for the night.
2kW Solar System (Large-Scale Use)
The next option is 2kW, which costs around Rs 400,000 and is used by big families that need to power high-energy appliances and gadgets such as refrigerators, LED lights, laptops, etc.
Their monthly output totals around 250 units. The most interesting advantage of using these solar panels is that they can provide free electricity for 25 years, but their initial cost is high.
3kW Solar System (Business Level)
3kW is also expensive and can cost around Rs. 600,000. If a hybrid system is used, then that can cost an extra Rs.100,000, and off-grid systems can reach up to Rs. 1 million. As a result, these systems also provide more output, around 300-360 units per month. Businesses use these as well.
5kW Solar System
5kW panels cost around Rs. 850,000 to Rs. 900,000, but the price can vary depending on the battery backup and installation capacity. The output is higher than all the previous options, with around 675 monthly units.
6kW Solar System
A 6kW solar system is around Rs. 1,580,000 to Rs 1,820,00. This is best for medium-sized businesses as it generates over 600 to 700 units monthly and can power all types of appliances.
7kW and 10kW Solar System (Industrial Use)
Lastly, there are two types of solar panels left—7kW and 10kW solar panels. A 7kW panel costs around Rs.950,000 to Rs. 1,350,000 and can produce up to 7,000 watts of power at any time. A 10kW has more features, such as monocrystalline solar panels, and costs about Rs 1,150,000 and Rs. 1,800,000. They can produce up to 36 to 50 kWh of electricity in a day.
Net Metering
Solar panels have also improved efficiency and cost-effectiveness because improved energy storage systems such as bifacial panels have become more common. There is also a technique that solar system owners can benefit from, such as “net metering,” which allows users to send extra electricity back to the grid, and this permits them to run their meter backward. The opportunities to save money and solve energy crises are immense.
Net metering policies are typically implemented by distribution companies and DISCOs and not directly by WAPDA.
In Karachi, K-Electric offers net metering, and LESCO facilitates this by allowing consumers to decrease their bills by sending excess energy back to the grid. In Multan, MEPCO provides net metering services, FESCO provides net metering services in Faisalabad, IESCO provides net metering in Islamabad, and PESCO provides net metering in Peshawar. The usage of net metering can be extremely beneficial for businesses as well, as they can get advantageous returns on their investments. It is also true that despite the high prices of imported solar panels, people are still considering it as a viable option and a one-time investment rather than thousands of rupees worth of electricity bills they have to pay every month. In May 2024, the government formally sought a 25 % increase in the base national electricity tariff, which was to become effective from July 1, 2024.
The electricity sector is knee-deep in an alarming debt of $8.3 billion. In the last week of June, the city of Lahore experienced load-shedding and power cuts for up to 12 hours. During this time, the temperature of the city rose to 46 °C. Needless to say, residents suffered a great ordeal of pain during this time. There is no accurate record of how many people have shifted to solar panels, but there is an indication that this number is rising daily. Shahzad Qureshi, a vendor of solar panels in Lahore, mentioned to Nikkei Asia that he has witnessed an exponential increase in sales of inexpensive panels, mostly imported from China and a 50 % increase in sales of solar panels occurred during this summer only. Apart from urban cities, even villages such as Kardigap in Balochistan have installed solar panels in their homes.
Environmental Impacts of Using A Solar Energy System
It is a fact that Pakistan has immense potential for increasing solar energy options. According to the World Bank, Pakistan boasts a solar power potential of 40GW and aims to source 20% of its electricity from renewables by 2025. Even though the use of solar energy has increased due to the gruesome financial situation and inflation of the country, it must be noted that the rise in investment in solar energy will lead to less reliance on fossil fuels. Hence, this will lead Pakistan towards a path of environmental sustainability. Pakistan also aims to transition to 60% renewable energy and achieve a 30% penetration of electric vehicles by 2030. This will help the country to retain its Nationally Determined Contribution (NDC) target.
The increase in power generation through solar panels poses a crisis though, as their increased usage will eventually lead to fewer people consuming electricity from the national grid. However, current circumstances suggest that people are left with no option but to make investments in this alternative resource. They are purchasing whichever type of panel their savings can allow.
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Zara Zahid Khan is a law student at the Lahore University of Management Sciences. She is a freelance writer who enjoys writing about legal and political issues.