Pakistan Solar Power: News & Updates

Here's my friend Professor sb on Pakistan's storage boom


After installing over 50 GW of solar panels as of early 2026, Pakistanis are now adding batteries at a rapid pace. The country has imported nearly 7.6 GWh of batteries, with nearly 60% of that total arriving during 2025 alone. Pakistanis are now installing batteries at a rate exceeding 5 GWh annually, according to a recent report by Renewable First. Batteries enable consumers to store excess solar electricity generated during daylight hours for use at night and to smooth out demand on the grid. Batteries also contribute to national grid stability, reducing costs and improving overall energy security for energy-import-dependent Pakistan.

By FY25, 7.3 million households in Pakistan had solar installed on their rooftops; out of a total 40 million households in the country, that makes nearly 1 in 5 of all Pakistani homes, the report says. With the battery boom gaining pace, around 282,000 solarized households, roughly 4%, now have BESS storage installed at home. That's 1 in every 26 solarized households, a share that is rising fast as storage costs continue to fall.

Battery prices have declined about 75% over the past decade, from over $460 per kWh in 2015 to approx. $110 per kWh in 2024, with forecast of further declines through 2027. The introduction of sodium-ion technology is likely to further accelerate widespread adoption of battery storage. Sodium-ion batteries are expected to replace lithium-ion (specifically low-cost LFP) batteries in most stationary (non-ev) applications by reducing prices by 30% to 50%.

A big chunk of Pakistan's import bill goes to pay for energy imports. Last fiscal year, which ended in June, 2026, Pakistan imported oil and gas worth $17 billion, exacerbating the current account deficit. By one estimate, Pakistan avoided over $12 billion in oil and gas import costs between 2021 and February 2026 because of its consumer-led solar revolution. A further ~$6.3 billion hydrocarbon import savings are projected by the end of 2026. Energy imports are the most volatile part of Pakistan's imports because of oil shocks such as the one created by the US-Iran war and the resulting closure of the Strait of Hormuz.

The ongoing solar revolution and battery boom in Pakistan will help reduce energy costs, improve energy security and help deal with the impact of climate change. Pakistan government policies should fully support this consumer-led movement toward the country's energy independence.

Regards
 

Manufacturing batteries locally

Sapna V Khemani
August 17, 2026

Pakistan is on the verge of one of the largest industrial opportunities of the energy transition. Domestic demand for lithium-ion batteries is projected to increase from just 5-6GWh today to 40-51GWh by 2031, creating a market valued between $6.5 billion and $9bn.

Yet more than 80 per cent of the country’s battery cells, packs and critical materials are imported. There is no commercial-scale cell manufacturing, no national battery testing infrastructure and no organised recycling ecosystem. If current trends continue, Pakistan’s battery import bill alone could exceed $2–3.15bn annually by the end of the decade.

This is not merely an energy-sector concern. It is an industrial policy challenge with implications for trade, employment, technology transfer and long-term competitiveness. Every imported battery represents value addition, skilled jobs and technological capabilities created elsewhere.

As demand for electric vehicles, renewable energy storage and backup power accelerates, Pakistan faces a simple choice: become a producer within the global battery value chain or remain a growing market for imported technologies.
 
The encouraging news is that Pakistan is not starting from scratch. Unlike many emerging industries that begin with policy uncertainty, the country already possesses a reasonably coherent roadmap.

The proposed Battery Manufacturing Policy 2026–31 outlines incentives designed to encourage domestic production, including a reduced sales tax for local manufacturers, accelerated depreciation to lower the cost of capital, protective duties on imported finished batteries and an ambitious localisation roadmap targeting 70pc domestic value addition by the initial implementation phase and 80pc thereafter.

Collectively, these measures signal an understanding that battery manufacturing requires long-term investment supported by a predictable policy environment.


Opportunities lie in assembly, management systems, casings and supporting electronics, all of which require significantly lower investment

However, good policy documents do not automatically produce competitive industries. The real test lies in implementation and in addressing several critical gaps that continue to discourage investment.

The first is export competitiveness. Battery manufacturing is inherently integrated into global supply chains, where cost differences of only a few percentage points can determine investment decisions. Pakistan’s Export Facilitation Scheme (EFS) already allows exporters to import machinery and raw materials free of customs duties and indirect taxes.

Yet the battery sector has not been fully positioned to benefit from this framework. Without access to internationally competitive input costs, local manufacturers will struggle to compete against established Asian producers, regardless of domestic demand.

Extending comprehensive EFS coverage to battery manufacturers is therefore not another incentive; it is a prerequisite for creating an export-oriented industry rather than one limited to serving the domestic market.

The second challenge is technological flexibility. The policy rightly identifies lithium iron phosphate (LFP) batteries as an initial priority because of their safety, affordability and widespread adoption in electric vehicles and grid-scale energy storage.

Battery technology is evolving rapidly. Sodium-ion batteries are beginning to enter commercial markets, while advances in battery management systems, solid-state technologies and other chemistries continue to reshape global investment decisions.

Pakistan should avoid locking itself into a single technological pathway. Instead, policy incentives should remain technology-neutral, encouraging innovation while allowing manufacturers to adapt to changing global standards.
 
The country also possesses untapped raw material potential. Documented lithium deposits and high-purity graphite reserves provide the foundation for a future domestic supply chain. Yet these resources remain largely unprocessed. Without investment in refining and intermediate processing, Pakistan risks repeating a familiar pattern, exporting raw material potential while importing high-value manufactured products.

Industrial policy should therefore extend beyond assembly operations and promote value addition across the production chain.

Perhaps the most urgent weakness, however, lies in quality assurance. Export markets are built not only on competitive prices but also on trust. Pakistan currently lacks a comprehensive testing and certification framework for lithium-ion batteries.

Reports of substandard and rejected battery cells entering domestic markets highlight the consequences of this institutional gap. Without internationally recognised testing laboratories, standardised certification procedures, and systematic quality inspections, ambitions to develop a credible export industry will remain difficult to realise.
 

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