Surprising Drop in Solar Panel Prices, but Access Remains Unequal in Pakistan

Islamabad: Solar energy is increasingly being promoted as an affordable and sustainable alternative power source in Pakistan, yet a large segment of the population remains unable to benefit from it despite a significant reduction in solar panel prices.

According to media reports, rising electricity tariffs coupled with falling solar panel prices have not translated into widespread adoption among low-income households and small businesses. Sources say the core issue is not technology or profitability, but the lack of upfront investment and access to financial support.

The report highlights a clear equity gap in solar adoption. Wealthier households and large industrial units have already captured most of the benefits of solar energy, while low-income families and small businesses continue to lag behind.

The study noted that the 2022 energy crisis and subsequent economic pressures led to uneven growth in distributed solar systems. Initially, industrial and commercial consumers turned to solar to ensure uninterrupted power supply and reduce energy costs.

Between 2023 and 2025, declining battery pack prices made hybrid solar systems viable for affluent households and large businesses. However, low-income groups still remain largely excluded from these solutions.

The report further pointed out that despite global declines in solar panel prices, installation costs remain unaffordable for many potential users in Pakistan.

It also revealed that Pakistan’s distributed solar market holds an estimated Rs800 billion in untapped credit capacity across just three major cities. However, weaknesses in financial structures have prevented millions of households and small businesses from accessing these opportunities.

Experts stress that without targeted financing mechanisms and policy reforms, the benefits of cheaper solar technology will continue to bypass the country’s most vulnerable consumers.