Why the Solar Market is Slowing Down in Pakistan (2025) — Reasons & Future

In the last few years, solar energy became the most popular choice for homes and businesses in Pakistan. Everyone wanted to cut down their electricity bills and install solar panels. But now, in 2025, the solar market has clearly slowed down.

Let’s explore why this happened, what the main reasons are, and what the future looks like for solar in Pakistan.

1. Government Policy & Uncertainty

One of the biggest challenges for Pakistan’s solar industry is policy instability. Sometimes the government supports solar, and other times it hints at sudden changes.

For example:

  • In July 2025, rumours spread that the government would reduce the buyback rate for solar energy exports. This would mean gross metering instead of net metering, making solar less profitable.

  • Later, the government denied these changes — but the damage was done.

Result: People became confused and hesitant. Many started thinking:
“Should we install solar now or wait for clarity?”

2. Weather & Seasonal Changes

Another reason for the slowdown is weather impact.

  • In July 2025, Rawalpindi recorded 230 mm of rain in a single day.

  • The summer heat ended earlier than usual.

When temperatures drop and electricity demand goes down, the urgency to install solar also decreases. Seasonal factors have always influenced solar sales, but this year it was more visible.

3. Falling Prices and Too Many Brands

The good news? Solar panels, inverters, and lithium batteries are cheaper than ever.
The bad news? People keep waiting for prices to fall even further.

Add to this:

  • Pakistan imported a huge quantity of solar panels from China, much more than local demand.

  • Dozens of new brands have entered the market — some high-quality, others low-quality.

Impact:

  • Heavy competition has slashed profits for solar companies.

  • Customers feel confused about which brand to trust.

4. Market Saturation (Demand Already Met)

Between 2023 and 2024, solar adoption in Pakistan was massive. Thousands of homes and businesses switched to solar.

Now, most people who could afford solar already have it.
Today, demand comes mainly from:

  • New houses

  • Small businesses

  • People who delayed their decision earlier

The initial boom is over; the market is normalizing.

Key Data & Charts

1. Solar Panel Price Drop:
📉 Prices fell from PKR 55/Watt (2022) to PKR 25/Watt (2025).

2. Imports vs Local Demand:
📦 In 2024, Pakistan imported 17 GW of solar panels — while local demand was only 4 GW.

3. Installed Solar Capacity Trend:
⚡ Installations skyrocketed from 2020 to 2024, but 2025 shows much slower growth.

Conclusion & Future Outlook

Does this slowdown mean solar is over in Pakistan? Absolutely not.
Electricity remains expensive, and solar technology is cheaper than ever. The real problem is policy uncertainty and market confusion.

Our opinion:

  • This is still the best time to invest in solar.

  • Prices are at an all-time low.

  • A quality solar system will serve you for 20–25 years.

The key is:
✅ Choose the right installer
✅ Buy original products with warranty
✅ Plan for long-term savings

At Comfort Solar, we guide customers honestly, offer genuine products, and provide professional installation with full warranty.

👉 Solar is the future of Pakistan — plan wisely and invest with trusted partners like Comfort Solar.

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