Rooftop solar boom saves Pakistan $12bn in LNG imports

Pakistan’s rapid rooftop solar adoption has saved the country an estimated $12 billion in liquefied natural gas (LNG) imports, according to a study by UK-based energy think tank Ember.

The report said solar generation in Pakistan has surged sharply in recent years, placing it alongside hydropower and gas as one of the country’s largest sources of electricity.

As a result, gas-based power generation declined, while demand for other fossil fuels also dropped significantly. The study noted that if fossil fuels had met the same increase in demand instead of solar, gas usage would have risen substantially, increasing import costs.

Ember said Pakistan’s solar boom has been driven by rising electricity tariffs linked to reforms backed by the International Monetary Fund, prompting consumers to shift to rooftop solar systems.

The expansion has also been supported by net metering policies and the availability of low-cost solar panels, particularly from China.

The shift has reduced reliance on imported fuels at a time of global price volatility, though the report warned that declining grid demand could increase electricity tariffs as fixed system costs are spread across fewer users.

It urged authorities to maintain a financially stable power grid to support continued solar growth, especially in the absence of large-scale battery storage.

Separately, Pakistan’s Power Minister Awais Leghari said around 55% of the country’s electricity generation currently comes from clean sources, with a target to exceed 90% by 2034.

He added that about 74% of electricity generation is now based on local resources, with plans to increase this share to over 96% in the coming years.