The Daily Brief Why Pakistan’s Solar Revolution Backfired
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Jul 8, 2025 Pakistan's ambitious solar energy shift has become an unforeseen crisis, burdened by historical missteps in its electricity sector. The rising costs and IMF demands push citizens toward solar options, yet net metering policies complicate access and burden the lower-income strata. Meanwhile, a focus on copper demand highlights India's race to innovate in renewable energy amid challenges in domestic production. The landscape is ripe with shifts and struggles as both countries navigate their energy futures.
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Pakistan's Rapid Solar Shift
- Pakistan's rapid solar adoption occurred as a survival response to prohibitively high grid electricity costs.
- This decentralized solar boom happened without government-led solar programs, driven by individuals seeking reliable power.
Solar Defection Raises Grid Costs
- Wealthier households in Pakistan are defecting from the grid, increasing costs for poorer users.
- This creates a financial spiral where remaining users bear rising tariffs, worsening grid viability.
Support Solar, Reform Grid Economics
- Governments should avoid penalizing solar users with reduced buyback rates or fixed grid fees.
- Instead, they must reform outdated contracts and grid models to support decentralized energy transitions fairly.