Business Recorder
‘Solar is part of the solution’ Waqas Moosa is Chairman of the Pakistan Solar Association (PSA) and a prominent voice in Pakistan’s renewable energy sector. A member of the PSA Executive Committee since 2020 and former Vice Chairman, he has played an active role in advancing solar adoption, industry standards, and policy engagement to support the growth of Pakistan’s solar ecosystem. Alongside his role at PSA, Waqas is the Co-founder and CEO of Hadron Solar, one of Pakistan’s leading solar companies. With over 20 years of business experience across Pakistan and the GCC, he brings deep expertise in renewable energy, business growth, and market development to the sector. Following are the edited excerpts of a recent conversation BR Research had with him: BR Research: How do you see Pakistan’s power sector evolving—especially with solar becoming mainstream? Waqas Moosa: Pakistan’s power sector is going through a structural shift that is comparable to what happened in telecom. We are moving away from a purely centralized, one-way electricity model to a more distributed system where consumers are also producers. This transition is not a slight change—it fundamentally alters how the grid is planned, financed, and operated. What is important to recognize is that Pakistan’s per capita electricity consumption is still extremely low—around 600 units per year. This is among the lowest globally. For context, the global average is close to 3,000 units, India is around 1,100, and Bangladesh is above 900. So, despite the rapid rise of solar, Pakistan is not “running out of demand.” There is still a large consumption and electrification runway ahead. That is why I often say: the market is not one small cake that everyone is fighting over—there are six or seven cakes available, depending on which part of the energy transition you want to participate in: generation, storage, EV charging, industrial electrification, agriculture, distributed grids, and more. BRR: Many policymakers argue that rooftop solar is “disrupting” the grid. Do you agree? WM: Solar is not the problem. Solar is simply exposing structural weaknesses that already existed—such as rigid power contracts, high fixed costs, poor recoveries, and an outdated tariff design. In fact, solar can become a stabilizing force for the grid—but only if Pakistan begins treating storage and demand-shifting as core parts of the system. The reality is: solar without storage creates a new operational challenge. Solar generates most during the day, but demand peaks at night. This creates the famous “duck curve” problem. Pakistan is now entering a renewable era where the grid must learn to manage that curve. And to be fair, this is uncharted territory globally. Many countries are learning through trial and error. Pakistan should approach this transition with common sense, technical realism, and institutional maturity—not reactive policy swings. BRR: What triggered Pakistan’s solar boom so suddenly? Why did it accelerate so sharply in 2023–2025? WM: Pakistan’s solar boom was the result of a perfect storm—multiple factors converged at the same time. First, the single biggest driver was electricity tariffs. Prices started rising after 2018, but the real acceleration came after 2022. Exchange rate correction played a huge role because Pakistan’s power sector is heavily linked to dollar-denominated contracts. As the rupee weakened, costs were passed through to consumers. Second, electricity bills were not just energy charges anymore. They became loaded with taxes, surcharges, and levies—income tax, sales tax, and surcharges like the Neelum Jhelum surcharge, among others. A base electricity price of around 14–16 PKR per unit eventually became close to 50 PKR, and in some cases, consumers were paying up to 70 PKR per unit. Third, Pakistan had import restrictions in 2022 which created pent-up demand. When imports reopened in 2023–24, the market was flooded with solar products. Prices fell rapidly, and solar became affordable at scale. Fourth, global dynamics played a key role. China had massive overproduction of solar panels. At the same time, demand weakened in Europe and the US due to the Ukraine war and trade restrictions. So cheap solar panels were pushed into markets like Pakistan. So yes—tariffs were the trigger, but supply dynamics made solar economically irresistible. BRR: There is a perception that solar is only for the rich. How accurate is that? WM: That argument is largely a red herring. Every technology starts with early adopters—whether it was mobile phones, TVs, or computers. Over time, prices fall and adoption broadens. Solar is going through the same diffusion curve. But more importantly: in Pakistan, solar is not a “green luxury.” It is increasingly a financial necessity. People are not installing solar to feel environmentally conscious—they are installing it to survive electricity prices. And the farming sector proves that clearly. Farmers are extremely price-sensitive, yet solar adoption for tube wells has surged. That tells you solar is not a lifestyle choice—it is pure financial logic. Pakistanis have also been doing “jugaad” for electricity for decades. We had UPS systems in the 80s and 90s. We learned to cope with load-shedding long before solar became mainstream. This resilience is part of the story. BRR: One of the major policy debates today is net metering versus gross metering. What is the real issue behind this debate? WM: The issue is not whether net metering should be changed. Most countries eventually redesign these policies. The real issue is how it is changed and whether policymakers understand the behavioural outcome. If the government adopts a highly punitive structure—for example, selling electricity at Rs50 but buying solar export at Rs10—that becomes a 1-to-5 ratio. In such a case, consumers will not stay engaged with the grid. They will simply move toward battery storage and disconnect. This is what policymakers often miss. If the buy-back rate is too low, the rational consumer response is to install batteries and reduce grid reliance. And battery prices are falling quickly. Technology is improving rapidly. This is where the government’s approach becomes dangerously myopic: if the policy pushes consumers toward defection, the grid loses its best-paying customers. BRR: Why is consumer defection such a risk for the utilities? WM: Because the residential segment is not marginal—it represents roughly 50–60% of demand. And within residential, the highest-end areas like DHA and Bahria are the best-paying customers. If these customers move to solar-plus-storage and stop paying grid bills entirely, utilities lose revenue while fixed costs remain. Once people invest in batteries and restructure their energy habits, they are unlikely to return to the grid. That is why policy must be designed to keep solar consumers integrated—not punished into exit. BRR: You have used the phrase “BESS Emergency.” What do you mean by that? WM: Pakistan needs to treat storage as a national priority. I call it a Battery Energy Storage System (BESS) Emergency because the window is closing. If storage is not deployed at grid scale, the natural outcome will be decentralized storage at household level. That is the worst outcome for the grid, because it accelerates disconnection. Instead, Pakistan should enable large-scale storage projects that stabilize the system and absorb daytime solar surplus for nighttime use. But this requires regulation. NEPRA must define how storage is compensated, what ROI structure is allowed, and how storage participates in the power market. It also requires financial enablement. The State Bank must recognize storage as a bankable asset. Batteries should be eligible as collateral. Financing schemes should be designed so investors can deploy storage at scale. BRR: What tariff reforms would help the grid benefit from solar rather than suffer from it? WM: Pakistan needs smarter tariffs—particularly time-of-use tariffs that match solar production. One practical idea is introducing a super off-peak tariff during the solar peak window—roughly 10:00 AM to 2:00 PM. The objective would be to encourage consumers to shift electricity use to the daytime. For example, if people run water pumps, washing machines, industrial processes, or cooling systems during solar peak hours, the grid can flatten its curve. This can be designed to be revenue-neutral over 24 hours: the utility earns less during the day but reduces stress and costs at night. The grid does not only need more supply—it needs demand to become smarter. BRR: One topic PSA is highlighting is “E-mobility with solar.” How realistic is solar-driven EV adoption in Pakistan? WM: It is not only realistic—it is essential. Pakistan should focus first on electric two-wheelers and three-wheelers because they represent a substantial portion of petrol consumption. In fact, two-wheelers and three-wheelers consume close to 60% of petrol in Pakistan. If we electrify that segment, the country saves a significant amount of imported fuel and dollars. But EV adoption will not happen automatically. The ecosystem needs to be built. Registration costs should be reduced. Charging should be made accessible. And EVs must be made socially desirable people adopt what is “cool,” not what is preached. Charging infrastructure does not need to be complex initially. It can start from schools, colleges, markets, and even dhabas. Pakistan’s EV strategy must be practical and mass-market, not elite. BRR: Pakistan’s solar story is being described as unique globally. What makes it different? WM: Pakistan’s solar boom is unique because it is largely distributed and private-sector driven, not utility-scale. Between 2024 and 2025, we estimate that $2 billion to $4 billion was invested in solar by private citizens and businesses—without sovereign guarantees, without government procurement, and without public financing. That scale of investment is extraordinary for a developing economy. This also means Pakistan has reduced oil imports and saved dollars through citizen-led capital deployment. In a country facing chronic balance-of-payments constraints, this matters. BRR: What lessons can the Global South learn from Pakistan’s solar expansion? WM: There are several lessons. First, solar adoption accelerates when electricity becomes unaffordable. That is the “push factor.” Second, global supply cycles matter. Pakistan benefited from a global oversupply of panels. Third, policy matters. Countries that tax solar equipment slow down adoption. Bangladesh, for example, has faced this. Pakistan, relatively speaking, has had a more enabling environment. Fourth, financing matters. If governments introduce subsidized financing schemes for solar and storage, adoption broadens beyond early adopters. Finally, solar is particularly powerful in agriculture and remote areas where grid density is low. Distributed solar can electrify economic activity without waiting for full grid expansion. BRR: Finally, what is PSA’s message to policymakers as Pakistan enters this solar-storage era? WM: Our message is simple: Solar is part of the solution We are not advocating for solar at the expense of the grid. We are advocating for an energy transition that strengthens the system. Pakistan should not fight solar. Pakistan should integrate solar intelligently through storage, smarter tariffs, and predictable regulation. If policymakers take a punitive approach, consumers will defect and the grid will become weaker. If policymakers take a strategic approach, solar can become the cheapest path to competitiveness, energy security, and reduced imports. The choice is still in our hands—but the window is narrowing.
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