Rising Solar Energy Usage Increases Financial Burden on Grid Electricity Consumers

A recent study has revealed that the growing adoption of solar energy is significantly impacting grid electricity consumers in Pakistan. During the fiscal year 2023-24, the rise in solar energy usage added an estimated financial burden of PKR 200 billion on grid users. Further, a 5% reduction in grid electricity demand could result in an additional PKR 131 billion burden on consumers.

Key Findings:

• Solar energy usage has led to an 8-10% drop in daytime electricity sales.
• The reduced grid demand has caused electricity rates to increase by PKR 2 per unit for other consumers.
• A 10% decline in grid electricity demand could double the financial burden, reaching PKR 261 billion.

Expert Recommendations:

The report highlights the urgent need for timely reforms to mitigate the financial strain on consumers and distribution companies. Policymakers are urged to balance solar energy expansion with grid electricity dynamics to ensure equitable electricity pricing for all users.

This study underscores the critical need to address the financial and operational challenges posed by the increasing reliance on solar energy while fostering a sustainable energy future.