Pakistan Solar Net Metering Surge as Grid Electricity Demand Slips
Pakistan is experiencing a notable Solar Net Metering Surge even as demand for conventional grid electricity remains weak, according to the latest State of Industry Report released by the national power regulator.
During the 2024-25 fiscal year, total electricity consumption across all distribution companies (DISCOs) — including K-Electric — was about 111,466.7 GWh, marking a slight 1.7% rise over the previous year. However, this figure still sits significantly below consumption levels seen in 2021-22 and 2022-23, highlighting a continued contraction in grid usage rather than a short-term dip.
Residential consumption’s share increased marginally, but this was mainly due to a steep drop in agricultural electricity usage, which fell by over 31% year-on-year. Industrial demand recovered modestly thanks to movement away from captive generation and federal support incentives.
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Amidst subdued grid demand, rooftop solar adoption has surged. The number of Solar Net Metering users across Pakistan soared nearly fourfold in two years — from under 38,000 in FY2021-22 to more than 378,000 by the end of FY2024-25 — as consumers seek to mitigate rising electricity costs by generating their own power.
Pakistan Solar Net Metering Surge as Grid Electricity Demand Slips
Net-metering connections have not only multiplied but also exported significant electricity back to the grid, even though overall imports from the grid still exceed exports in many areas. Urban DISCO regions like LESCO, FESCO, MEPCO, and IESCO have led the growth due to higher incomes and abundant rooftop space.
NEPRA has warned that while this rapid solar net metering surge helps consumers lower their bills, unchanged fixed payments to traditional power producers could increase costs for remaining grid subscribers. To address these systemic shifts, the regulator has asked DISCOs to conduct detailed impact studies to inform future policy and tariff decisions.
