Solar System Implementation for Small Factories in Pakistan

It is growing into the solar industry in Pakistan nowadays very soon with installed capacity to reach somewhere between 2.3 GW estimated by early 2025. The Small and Medium Enterprises (SME) are approaching solar technology due to varied factors which are:

• Continuity in power supply beyond 6-8 hours daily outages from the industrial areas;
• 45% Electric tariff slain between the year 2022 to 2024;
• Government incentives such as lower import duties on solar equipment;
• Initiatives from the banking sector for providing related green financing options.

This will help small factories in the range of 50-200 kW to enhance energy security through reduced costs at the manufacturing sector.

 

Market Trends Data

By 2025, early indications for the states of the industrial solar installations of Pakistan will be:

• Estimated Installation Cost: PKR 85,000-100,000 per kW (USD 300-360 per kW).
• Payback Period Average: 3-5 years depending on energy consumption behavior
• Production efficiency: 17-22 pct for premium panels, 14-16 pct for standard options
• Generating at least 1600-1800 kWh annual averagely per year per installed KW capacity
• Lifetime: 25+ years with a guarantee of 80% efficiency for quality systems

The net metering regulations on the sale of excess generation to the grid by the NEPRA as of January 2025 will be at 19.32 PKR per kWh.

 

👉Get Wholesale Prices of Solar Energy Systems in Pakistan

 

Examples from the Skgreal

Example 1: Study Case of Sarhad Textile Mills, Peshawar

This little textile factory has also executed a solar system of 75 kW in the middle of 2024.

• Cost of development: 6.8 million PKR
• Savings in electricity per annum: 2.1 million PKR
• Savings on cost of generator fuel: 850,000 PKR
• Predicted payback period: 3.2 years
• Backup backup systems available on batteries for critical equipment in case of night blackouts

Example 2: Lahore Food Processing

A total installation cost of 10.2 million PKR incurred by one 120 kW installation financed partially through Bank Alfalah's Green Energy Financing.

• Savings in monthly electricity costs: 380,000 PKR
• Shift in grid dependency from full to 40% in daylight hours
• CReduction in CO₂ emissions: 110 tons a year better quality of products resulting from consistent power supply

 

Implementation Steps

1. Energy Audit & System Design

• Having energy assessment costing up to 50,000-100,000 PKR
• Analysis of 12 months of electricity bills to find out the consumption behavior
• Identify peak demand periods and critical equipment needs
• Footprint for future expansion and its additional energy needs
• System dimension finalization as per our available roof space and budget limitations

2. Financial Planning & Application of Incentives

• Prep ROI projection-backed detailed cost-benefit analyses
• AEDB, alternative energy development board apply available government incentives
• Financing options: State Bank of Pakistan has green SME concession finance of loans at 6% for green energy projects.
• Also, consider lease or power purchase agreements with providers, like Reon Energy or Solis Energy.

3. Vendor Selection and System Design

• At least ask for proposals from three certified solar installers.
• Compare warranties, after-sales service and installation portfolio
• Choose the right type of technology (monocrystalline for space-restrained factories and polycrystalline for budget options).
• Plan the system on future expansion.
• Ensure the system is appropriate for the present electrical infrastructure.

4. Installation and integration into the grid

• Permits from local electricity distribution company must be obtained: strengthening roofs where necessary (PKR 100,000-300,000 added expenditure).
• Install mount systems, panels, inverters and monitoring equipment.
• Safety activation for lightning protection.
• Connect to nets approved for metering purposes.
• Final testing and commissioning according to representatives of the distribution company.

5. Maintenance and Optimisation

• Schedule every other year maintenance (PKR 20,000-40,000 per service).
• Manual cleaning of panels every month during dry seasons to maintain efficacy.
• Use software systems to track generation to capture issues with performance.
• Train internal staff for basic troubleshooting and monitoring.
• Quarterly system performance review for optimizing energy usage patterns

Future Considerations

The continuous fall in solar equipment prices combined with ever-increasing prices for grid electricity will continue to enhance the ROI of solar installations on factory rooftops. Other proposals for small factories include:

• New (and thus becoming cheaper) battery storage options suitable for nighttime driving
• Carbon offsets possible under the Pakistan Carbon Market Framework
• Hybrid systems, wind included, in appropriate sites
• Use all solar energy by replacing all devices with energy-efficient alternatives

Well, it goes, small factories can, indeed, become energy independent, with cuts offset by reductions in operating costs.