THERE has been a monumental increase in the use of solar power in Pakistan, whether by domestic users or by the industry. Although the initial invest is high, solar power has given people a cheap and reliable source of electricity in an environment where the grid is extremely expensive and unreliable. These days social media is abuzz with various news about Solar energy, before we get into these news stories, let us see the impact of solar on the environment and national economy.
Pakistan is one the worst affected countries by climate change. We have seen the ravages of climate change in Pakistan over the last decade. For a country in such an environment, it is criminal that most of our primary energy supply comes from oil and natural gas. Solar energy on the other hand generates electricity without emitting greenhouse gases, such as carbon dioxide, methane, or nitrogen oxides. By replacing fossil fuel-based energy sources with solar power, we can significantly reduce air pollution and mitigate the harmful effects of climate change. Additionally Solar energy is a renewable and abundant resource that is available worldwide. Unlike finite fossil fuels, solar power is inexhaustible and can be harnessed for electricity generation for billions of years to come. This promotes energy security and reduces dependence on imported fossil fuels, enhancing national energy independence.
The solar energy industry creates jobs and stimulates economic growth at both the local and national levels. From manufacturing and installation to maintenance and support services, solar projects require a diverse workforce with a range of skills. Investments in solar infrastructure also attract capital and spur innovation, driving economic development and prosperity.
Investing in solar energy infrastructure strengthens national resilience and enhances energy security. Distributed solar power systems, such as rooftop solar panels and community solar projects, diversify the energy supply and reduce the vulnerability of centralized power grids to disruptions and disasters, which for country like Pakistan is essential. This promotes a more resilient and sustainable energy infrastructure for the future.Solar energy development minimizes habitat destruction, water pollution, and ecosystem degradation associated with traditional energy sources, such as coal mining and oil drilling. By preserving natural landscapes and promoting biodiversity, solar power contributes to environmental conservation and the protection of wildlife habitats, enhancing the quality of life for present and future generations.
In developed countries, where the cost of grid power vs per capita income is far lower than Pakistan, several benefits and incentives are offered to encourage investment in solar energy. They include financial incentives to promote solar energy adoption. These incentives may are in the shape of tax credits, rebates, grants, or low-interest loans for the installation of solar panels and other renewable energy systems. These incentives help offset the initial costs of solar installation, making it more affordable for homeowners, businesses, and utilities. Net metering policies allow solar energy system owners to receive credit for the excess electricity they generate and feed back into the grid. This enables customers to offset their electricity bills and potentially earn revenue by selling surplus energy to the utility company. Net metering encourages investment in solar energy systems and promotes grid stability by balancing supply and demand. Some countries offer feed-in tariffs, which guarantee a fixed payment for each kilowatt-hour of electricity generated by solar energy systems. FITs provide long-term financial security and a predictable return on investment for solar project developers, incentivizing investment in large-scale solar farms and distributed generation projects.
Many first-world countries have established renewable energy targets or mandates to increase the share of renewable energy in their electricity generation mix. These targets create market demand for solar energy and stimulate investment in renewable energy infrastructure to meet regulatory requirements and environmental goals.Governments and utilities may offer green certification programs or incentive schemes that reward businesses and individuals for adopting sustainable practices, including the use of solar energy. Green certification can enhance brand reputation, attract environmentally conscious consumers, and provide access to additional financial incentives or marketing opportunities.
First World Governments are investing increasingly in research and development (R&D) initiatives to advance solar energy technologies, improve efficiency, and reduce costs. Funding for R&D programs supports innovation and drives technological breakthroughs that make solar energy more competitive and accessible to a wider range of consumers. Most importantly Policy stability and regulatory certainty are essential for attracting investment in solar energy projects. First-world countries with clear and consistent policies, favourable regulatory frameworks, and supportive government initiatives create a conducive environment for solar energy investment, reducing investment risks and fostering investor confidence.
In Pakistan the only incentive being offered in net-metering. With a policy objective of taking renewable energy to 30% of the mix by 2030, the policy incentives needed are visibly lacking. There is now talk of cutting the net metering rates and taxing solar production. Although some clarifications have been issued by the government, mere talk of such steps is blasphemous for a country like Pakistan. Any further delay in implementing additional policy incentives for renewable energy is akin to incentivising the IPP mafia and playing with the destiny of the country. He sooner our policy makers realise this, the better it would be for Pakistan.
—The writer is Ex Chairman NDMA.
