Solar Expansion Takes a Toll on Non-Solar Consumers

A recent surge in solar expansion has led to a significant burden on non-solar consumers in Pakistan. According to key statistics, the cost of this shift is estimated to be around Rs200 billion. Furthermore, the tariff for grid-dependent consumers has increased by Rs2 per kilowatt-hour (kWh), placing a substantial financial strain on households and businesses that rely on the grid for their electricity needs. Experts predict that a 5% reduction in grid demand could result in a cost shift of Rs131 billion to non-solar consumers, while a 10% reduction could lead to a staggering Rs261 billion. The transition to solar power has also posed technical challenges for Distribution Companies (DISCOs), including voltage instability, reverse power flows, and increased demand for ancillary services. As a result, a 'death spiral' is anticipated, where rising tariffs will further drive consumers to switch to solar power, exacerbating the issue. This situation highlights the need for a more balanced and sustainable approach to energy distribution and consumption in Pakistan.