Solar energy is becoming extra popular in Pakistan. With rising electricity bills and common power cuts, many people are actually turning to solar power as a reliable and price-effective answer. But one of the most common questions is, How much does solar energy cost per kilowatt-hour (kWh) in Pakistan?
Here, we will break down the concept of price consistent with kWh, give an explanation for how solar panel pricing works, and assist you in comprehending the true value of solar strength in Pakistan.
Table of Contents
What is a kilowatt-hour (kWh)?
Before we talk about the cost, it’s important to understand what a kilowatt-hour (kWh) is.
- 1 kilowatt (kW) is identical to 1,000 watts.
- If you use 1,000 watts of electricity for one hour, that’s 1 kWh.
- For instance, if you run a 100-watt bulb for 10 hours, it’ll devour 1 kWh of electricity.
- Basically, kWh is the unit of strength you’re billed for via your electricity corporation (like WAPDA or KE).
Why Go Solar in Pakistan?
Electricity rates in Pakistan are rising. In 2024, the average electricity price was PKR 50–60 per kWh for residential users and even higher for commercial ones. With fuel prices going up, this trend is likely to continue.
Here’s why more people are going solar:
- Lower electricity bills
- Independence from grid power
- Eco-friendly solution
- Great return on investment (ROI)
- Government incentives (like net metering)
Factors That Affect Solar Energy Cost per kWh
There is no single fixed rate for solar energy. The cost per kWh from a solar system depends on several factors:
1. Size of the Solar System
The more energy you want to generate, the larger the system you will need.
| System Size | Daily Units Generated | Suitable For |
| 3kW | 12–15 kWh/day | Small homes |
| 5kW | 20–25 kWh/day | Medium homes |
| 10kW | 40–50 kWh/day | Large homes or offices |
| 20kW+ | 80–100+ kWh/day | Commercial use |
2. Installation Cost
The initial cost includes:
- Solar panels
- Inverters
- Mounting structure
- Wiring and labor
In 2025, the average cost per kW of a good-quality on-grid solar system in Pakistan is between PKR 180,000 and 230,000 per kW, depending on the brand and quality.
3. Sunlight Hours in Your Area
Pakistan has a high solar potential, with 5–7 sunlight hours per day on average. Cities like Lahore, Islamabad, Karachi, and Multan are ideal for solar energy production.
More sunlight = more energy = lower cost per kWh.
4. System Efficiency
High-efficiency panels and branded inverters produce more energy. Though they may cost more upfront, they reduce your cost per kWh over time.
5. Maintenance Costs
Solar systems have low maintenance, but occasional cleaning and servicing are needed. These costs are minor but must be included when calculating per kWh costs.
Calculating Cost per kWh for Solar Energy
Let’s break it down with a realistic example:
For 5 kW Solar System
Initial Cost:
- PKR 1,000,000 (including installation)
Lifespan:
- 25 years for panels
- 10 years for inverter
Daily Output:
- 20 kWh (average)
Annual Output:
- 20 kWh × 365 = 7,300 kWh
Total Output in 25 Years:
- 7,300 × 25 = 182,500 kWh
Cost per kWh:
- PKR 1,000,000 ÷ 182,500 = PKR 5.48 per kWh
That’s right — just PKR 5.48 per unit, compared to PKR 50+ per unit from WAPDA. That’s nearly a 90% savings.
Even if we include minor maintenance or inverter replacement (say an additional PKR 300,000), the cost becomes:
- PKR 1,300,000 ÷ 182,500 = PKR 7.12 per kWh
Still much cheaper than grid electricity!
Net Metering: Extra Savings
With net metering, you can export excess solar electricity back to the grid and get credits.
Example:
- You generate 700 units but use only 500.
- The extra 200 units are sent to the grid.
- These 200 units are subtracted from your next bill.
With net metering, your monthly electricity bill can be reduced to zero or even turn negative (you earn credits). This further lowers your effective cost per kWh, sometimes to only PKR 3–4!
Grid vs. Solar: Cost Comparison Table (2025)
| Source | Cost per kWh (PKR) | Notes |
| WAPDA (Grid) | 50–60+ | Varies with usage slabs & taxes |
| Diesel Generator | 60–80+ | Expensive fuel and high maintenance |
| UPS/Inverter | 30–40 | Includes battery replacement cost |
| Solar (On-Grid) | 5–8 | After payback period, it’s almost free |
| Solar + Net Metering | 3–6 | Extra savings through exported energy |
How Soon Do You Recover the Cost?
On average, a solar system in Pakistan has a payback period of 3–5 years.
After that, your electricity is practically free for the next 20 years.
Example:
- 5 kW system saves PKR 25,000/month
- Yearly savings = PKR 300,000
- Initial cost = PKR 1,000,000
- Payback time = 1,000,000 ÷ 300,000 = 3.3 years
After 3.3 years, your system has paid for itself. Everything after that is profit.
Is Solar Energy Worth It in Pakistan?
Absolutely. Solar energy is not only cheaper in the long run but also provides peace of mind against:
- Load shedding
- Fuel price hikes
- Increasing utility bills
Plus, it adds property value and supports a greener planet.
Tips to Lower Your Solar Cost per kWh
- Choose a quality system—it will last longer and produce more.
- Install the right size—avoid under- or oversizing.
- Keep your panels clean—dust can reduce output.
- Use energy during daylight—maximize self-consumption.
- Get net metering—export extra power to WAPDA.
- Monitor your system — Use apps to track performance and fix issues early.
Conclusion
Solar power is not just an investment in savings it’s an investment in your future. When you calculate the cost per kWh of solar energy, you’ll find it is much cheaper than other sources in Pakistan.
With rising electricity rates and excellent sunlight conditions, going solar now makes more sense than ever.
At Dawam Solar, we’re here to help you make a smart switch to clean, affordable, and reliable energy. We offer:
- Free site surveys
- Customized solar solutions
- High-quality panels and inverters
- Net metering assistance
- Professional installation and support
Contact Dawam Solar today and take the first step towards energy independence.
Have questions about solar pricing or want a quote for your home or business? Reach out to Dawam Solar, and our expert team will guide you every step of the way.
Frequently Asked Questions
1. What is the average cost per kWh of solar energy in Pakistan?
The average cost per kWh of solar energy in Pakistan is around PKR 5–8, depending on system size and efficiency.
2. How long does a solar panel system take to pay for itself?
Most solar structures in Pakistan get back their value in three to five years.
3. Is solar strength less expensive than electricity generating companies?
Yes, solar power is significantly cheaper than electricity generating companies, which charges over PKR 50 in line with kWh.
4. What is internet metering, and how does it assist?
Net metering lets you sell more solar electricity returned to the grid, decreasing your invoice.
5. Does the solar work all through load shedding?
On-grid systems shut down all through load dropping; however, hybrid or off-grid structures can offer backup electricity.
6. What size solar panel do I need for a home?
A normal house in Pakistan needs a 5kW system for every day’s use of 20–25 gadgets.
7. Are there any maintenance costs for solar panel systems?
Yes, but they are very low mainly occasional cleaning and inverter servicing