Pakistan is experiencing surging demand for electricity across all of the sectors of its economy. The new demand is being met by rapidly rising deployment of distributed solar, estimated at 38 GW as of June, 2025. In 2025, 44% of solar deployment was residential, followed by industry (26%), agriculture (21%) and commercial users (9%). The expansion of distributed solar has enhanced electrification across the economy, lifting Pakistan's electrification rate to 21.7% in FY2025 from 17% in FY2023, close to the global average of 22%, according to a report by Ember Energy titled "The solarization of Pakistan's energy economy". 

The solar energy revolution in Pakistan is a led by consumers. Driven by soaring electricity costs, unreliable grid infrastructure, and cheap imported solar panels, millions of households and businesses have installed rooftop solar. This rapid transition has transformed the country's energy landscape.  According to the report, Pakistan’s total electricity demand increased by 33 terawatt-hours (TWh) between fiscal years 2023 and 2025. Distributed solar generation alone grew by 36 TWh during the same period, making it the primary driver of electricity demand growth and offsetting declines elsewhere in the power system.