Solarising Pakistan

Amid the myriad economic challenges facing the country and individual citizens, one bright light has come in the form of the government’s decision to refrain from adding new duties to solar panels, which will hopefully translate into more affordable home-use hardware. It is well established at this point that the abundance of sunlight across the country makes Pakistan an ideal candidate for widespread adoption of solar energy. Successfully leveraging the power of the sun would reduce our dependence on fossil fuels, mitigate the impact of energy crises, and contribute to global efforts to combat climate change.

But while solar panels are extremely easy to use and have minimal operating costs, the up-front costs are significant enough to be a barrier. Even entry-level systems — which can only power small homes or offer a hybrid supply option — cost about Rs500,000. Bigger systems that can reliably power mid-size and larger homes cost several million rupees, and even though their payback periods can be quite quick — three to six years for most users — most people don’t have that kind of money lying around, and many also lack access to credit for the purpose, despite some recent government incentives.

But while the government may not be able to do much in the form of direct provision of easy credit, collaboration with international organisations and private sector entities can bring the expertise and investment needed to further advance solar energy deployment across the country. Surely, banks and other financial services companies can find a way to make a buck while also providing affordable financing — perhaps loans structured around a borrower’s average electricity bill and potential savings from solar would ensure they can be paid back in a timely manner without overburdening the borrower.

While solar power is not a silver bullet, it can still be a kickstarter for the economy by helping redirect resources to more productive ends, alongside improving quality of life across the board.