Commercial Plaza Solar System Implementation in Pakistan: Cost Analysis and Guide

The commercial real estate segment of Pakistan in solar energy is still engracing itself with the hope of overcoming the problems of energy reliability and cost. Commercial property plazas have high energy consumption in the day, thus making them one of the best candidates for solar.

This boost in the mechanism might have emanated from:

• Commercial electricity tariff structures increased by 55% since 2022
• Plural peak load surcharges levied exclusively on high-consuming commercial establishments during the day
• Ed. Daily power outages of an average of about 4-6 h
• The roots legislation under the auspices of NEPRA's net metering regulations for selling back surplus energy
• Green finance increased across banks for owners of commercial properties

The evolution in the legal environment has been favorable for the solar sector with special reference to fast-tracked approvals by AEDB for installations exceeding the capacity of 250 kW.

 

Pakistan Market Data

The following lockdown of variables is found to be observed in the commercial solar market of Pakistan as of February 2025:

• Cost of installation of a commercial solar project is in the range of PKR 80,000-95,000 per kW for systems over 100kW
• Such payback periods would average around 3.2-4.5 years for commercial plazas.
• Performance ratio of well-designed systems being: 75-82%.
• Cost of grid electricity for commercial users-PKR 38-42 per kWh (tax plus surcharges included).
• Metering: PKR 19.32 per kWh for export to the grid.
• On average, annual generation can be 1,650-1,850 kWh for each kW of installed capacity.

With more than 50 authenticated commercial installers working within the country, the market has reached such a maximum point of maturity where it is able to offer healthy competition that in turn helped to reduce installation costs by 18 times since 2022.

 

Customized solar energy storage system for your commercial plaza

 

Commercial Solar Systems Case Study

Case Study 1: Centaurus Mall

Islamabad Installation of 650-kW rooftop solar project performance for shopping malls is one of the largest in this Islamic Republic of Pakistan and going to install in middle 2024.

Project information comprises following:

• Total investment: PKR 54.6 million
• Yearly savings in power consumption: PKR 14.8 million
• Solar monitoring interlinked with building management system for optimized consumption
• Common area energy requirements have a solar contribution of 30%
• Financing structure: 40 equity; 60 green banking facility from Bank of Punjab
• Targeted ROI period: 3.7 years

Case Study 2: Liberty Plaza, Lahore

Installation of a solar PV system of 320 KW for medium sized commercial complex was commissioned in the first quarter of 2024.

• Project cost: PKR 27.5 million
• Reduction in cost of electricity bill: PKR 680,000 per month
• Coverage of canopy structures over parking areas was designed into the system.
• Requirements of smart energy management systems for load balancing
• The property becomes 15% more attractive to tenants by offering reduced electricity charges.
• New appraisal indicates enhanced property valuation by PKR 35 million

 

Implementation Steps

1. Feasibility Stud And Design

• Commission energy audit and site assessment (PKR 150,000-250,000)
• Analyze minimum 12 months of historical electricity consumption data
• Assess roof condition, loading capacity and available installation area
• Evaluate shadow patterns throughout the year
• Determine optimal system size and configuration
• Project financial benefits with detailed ROI analysis

2. Financial Planning and Compliance

• Wide-ranging project financing structure development
• Preparation of Application to Financing Scheme for Renewable Energy to State Bank of Pakistan with participating banks bringing interest ratesranging from 5-7%
• Technical documents to be forwarded to NEPRA for systems above 250kW
• Co-ordination with local distribution company (DISCO) for application to net metering approval
• Secure required permits from Capital Development Authority (CDA) or the respective authority granting such permits
• Obtain structural integrity certificate from registered structural engineer

3. Vendor Selection and Contracting

• Develop comprehensive RFP with at least 5 qualified installers.
• Evaluate proposals based on quality of equipment, prior commercial experience, and after-sales support.
• Review warranty terms: industry standard is for 25 years for panels and 10 years for inverters.
• Consider monitoring solutions and performance guarantees.
• Negotiate the invoice payment schedule based on project milestones.
• Clearly define performance parameters and testing procedures.

4. Installation and System Integration

• Construction of the installation programme to minimise interference with normal plaza activity
• Roof infrastructure reinforcement where needed (PKR 300,000-700,000 depending on condition)
• Mounting structure, panels, inverters, and balance of system components installation
• Electrical safety systems to include lightning protection
• Connection to internal electrical network via dedicated solar integration panel
• Bidirectional meter for net metering installed in coordination with the local DISCO

5. Commissioning and Management

• Testing under load conditions
• Trained operation and maintenance person for the facility
• Convenience performance monitoring systems with mobile apps for management use
• Scheduled maintenance protocol (quarterly cleaning and biannual technical inspection)
• Documentation of the system performance for tax and financial reporting
• Energy consumption pattern reviews quarterly for self-consuming optimization

 

Cost Breakdown for Typical Commercial Plaza

A Typical of Cost Breakdown for a Typical Commercial Plaza

For example: in case of a medium-sized plaza of about 200 kW capacity in the system for a total:

• Tier 1 maker solar panels: PKR 11.2 million
• Inverters of commercial standards: PKR 3.8 million
• Mounting structure and installations: PKR 2.3 million
• Balance of system (cables, protection devices): PKR 1.4 million
• Grid connection and metering equipment: PKR 650,000
• System design and engineering: PKR 800,000
• Project management and commissioning: PKR 550,000
• Estimated total cost: PKR