Solar Panel Projects by Punjab, Sindh, and KP Be A Challenge For Policymakers

The transformation from grid dependence to solar power is modifying the country’s electrical energy landscape but developing financial difficulties.

State-developed schemes of solar panels inevitably entail an intention to make cheap energy solutions for such citizens as those with low income. The Sindh government has promised to provide solar home connections to 200,000 households while Punjab and Khyber Pakhtunkhwa set the target of 100,000 each. Balochistan government has proposed to provide 50,000 solar homely systems. The measures are mainly directed to lifeline consumers who consume 0-200 units per month, which is 48% of electricity users.

At the same time, both the wealthy households and industrialists and the agricultural consumers are also exploring solar power to avoid high tariffs on electricity. As the analysis of available reports shows, the installed capacity of domestic solar energy has reached 2,500 MW, and the domestic demand for the grid energy has declined by 8-10% in daylight hours because of solarization.

This quick change creates difficulties for the local grid, as fixed charges are progressively borne by non-solar users . In fiscal year 2023-24, a 5% decrease in grid demand due to solar acceptance transported Rs 131 billion in costs to non-solar consumers, raising energy tariffs by Rs 2 per kWh. A 10% decline could double the expense load to Rs 261 billion.

For grid-connected consumers, policymakers have predicted that if the solar trend continues the tariff could rise by Rs 2.50 per unit by 2034 with 17 % increase in base tariffs.

The increase in the number of installations of solar panels shows that energy policy requires a more balanced view and the need for cheap electricity for everyone at the same time, considering the financial feasibility of the national grid.