Empowering industry with solar: a study of adoption factors and policy impact in Pakistan

Renewable sources are increasing at a fast pace both globally and also in Pakistan. The country is becoming popular for solar energy because it has high solar insulation. In Pakistan, solar photovoltaic (PV) systems have been investigated as a potential answer to the country’s energy crisis and its environmental problems in the industrial sector. The factors influencing the adoption of solar PV systems are examined in this study and economic, technological, social and environmental factors and key barriers to this technology are investigated. The promotion of solar energy adoption is also assessed based on government incentives (i.e. subsidies, net metering and tariff regulations). A survey and interviews were conducted with stakeholders who are involved in solar installations of 50 kW to 2 MW in Punjab in Pakistan. Economic advantage, environmental concerns and technological development are the dominant factors in the adoption of solar PV, according to the results. But there are huge barriers: limited technical expertise and, to some extent, financial constraints, as well as regulatory complexities. The problems are real, but it requires government incentives to make it work, but policy implementation and public awareness remain problems. Policy recommendations for increasing adoption of solar energy in Pakistan’s industrial sector are made at the end of the study based on improved financing options, streamlined regulatory processes, and targeted awareness initiatives.