Pakistan tests sharing rooftop solar power with neighbors in 2 pilot sites, but 1 regulation blocks it

A study by the Policy Research Institute for Equitable Development found the model technically workable in Islamabad and rural Tharparkar at an average tariff of 20 rupees per unit, but the Prosumer Regulations 2026 bar a solar owner from selling power to anyone except the distribution company.

20 rupees per unit4average tariff PRIED tested for letting households in Islamabad and Tharparkar trade solar power with neighbors
12,000 to 13,000 megawatts3Pakistan winter electricity demand against 41,000 megawatts of installed capacity it still pays for
1.8 to 2.3 trillion rupees3annual cost of fixed capacity payments Pakistan pays power plants whether the electricity is used or not, more than 7,000,000,000 dollars

Pakistan tests sharing rooftop solar power with neighbors in 2 pilot sites

Pakistan has imported more than 50 gigawatts of solar panels against a national grid built for 41 gigawatts. A Pakistani policy institute, the Policy Research Institute for Equitable Development, PRIED, asks what to do with all that rooftop solar power already installed. Its answer is a swarm grid, a digitally coordinated local network that lets a household use its own solar power, store it, sell surplus to a neighbor, buy power from a neighbor, and fall back on the national grid only when needed, PRIED own way of sharing rooftop solar power with neighbors instead of the utility. PRIED tested the idea in 2 places, an urban cluster in Sector G 13 in Islamabad and 2 rural villages, Thario and Khario, in the Tharparkar district of Sindh, and found the model technically workable in both.

Built power plants sit idle while Pakistan still pays for them

The case for coordinating what is already built rests on a paradox PRIED lays out in Pakistani rupees. Pakistan installed power capacity exceeds 41,000 megawatts, a megawatt equal to 1 million watts, but winter electricity demand often falls to 12,000 to 13,000 megawatts, leaving much of that capacity unused for months. Utilities still owe those idle plants capacity payments, paid just for having electricity available whether it gets used or not, worth 1.8 to 2.3 trillion rupees a year, more than 7,000,000,000 dollars. PRIED argues coordinated home solar systems could serve part of that unmet demand instead of leaving plants idle and billed anyway.

Pakistan installed capacity against what winter demand actually needs
0102030405050Panelsimported41Installedcapacity12.5Winterbaseload demandgigawatts

Winter baseload of 12.5 gigawatts is this article own midpoint of the 12,000 to 13,000 megawatt range source 3 gives, not a figure source 3 states outright.

Source 3.

Show the numbers
Panels imported50
Installed capacity41
Winter baseload demand12.5

How the tested swarm grid pricing worked

In both pilot locations, PRIED tested the same commission based tariff, a pricing system where buyer and seller agree the price of each unit of electricity traded rather than a regulator fixing it. Prosumers, the study term for people who generate and consume their own power, and consumers who only consume it, traded at an average of 20 rupees per unit, plus a fee of 1% to 5% of each trade, set by the seller, paid to whoever runs the swarm grid. PRIED found the urban Islamabad cluster commercially viable as a stand alone business under that pricing. The rural Tharparkar case needed upfront subsidy and help building local capacity first, since incomes and system sizes there are smaller.

Pakistan distributed solar mostly has no net metering deal

PRIED own 2025 survey found 33.34 gigawatts of installed distributed solar in Pakistan, split by connection type, 6.03 gigawatts net metered, meaning connected under an agreement to sell surplus back to the utility, 19 gigawatts connected without that agreement, and 8.31 gigawatts off the grid.

Pakistan distributed solar capacity by connection type, 2025
051015206.03Netmetered19Non netmetered8.31Offgridgigawatts

The 3 figures are PRIED own 2025 survey total of 33.34 gigawatts of installed distributed solar, split by how each system connects to the grid.

Source 3.

Show the numbers
Net metered6.03
Non net metered19
Off grid8.31

1 regulation blocks neighbor to neighbor solar trading

None of those 3 groups can legally do what a swarm grid needs, sell power to a neighbor instead of the utility. PRIED own reading of the rules finds the same restriction carried over largely unchanged from the 2015 Net Metering Regulations into the Prosumer Regulations 2026, which the National Electric Power Regulatory Authority, NEPRA, put in place on 9 February 2026 to replace them. Both versions bar a solar owner equipment from being used to sell electricity to anyone except the distribution company, the utility that owns the local wires. NEPRA was still amending that same 2026 regulation as recently as 6 August 2026. PRIED calls on NEPRA to write new peer to peer trading rules and on the Independent System Market Operator, ISMO, to open the retail electricity market within the next year, before a swarm grid can move beyond a feasibility study.

Sources

  1. Pakistan can turn rooftop solar boom into swarm grids, study. The Nation. Published 2026-09-11. Accessed 2026-09-22.
  2. PRIED, Pakistan could use rooftop solar to build swarm grids. Anu Bhambhani, TaiyangNews. Published 2026-09-21. Accessed 2026-09-22.
  3. From Solar Boom to Swarm Grids, can Pakistan turn scattered solar power into a shared network. Muqaddas Ashiq and Qurratulain, reviewed by Naila Saleh and Aurangzaib Khan, Policy Research Institute for Equitable Development, Situation Brief. Published 2026-08. Accessed 2026-09-22.
  4. Swarm Grids, the next phase of the Solar Boom. Policy Research Institute for Equitable Development, Transition Agenda. Published 2026-09. Accessed 2026-09-22.
  5. Notification, S.R.O. 1330(I)/2026, amendments in the National Electric Power Regulatory Authority Prosumer Regulations, 2026. National Electric Power Regulatory Authority. Published 2026-08-06. Accessed 2026-09-22.

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