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Solar Power Revolution: Cheap Panels Transform Global Energy

Financial Times Companies •
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In Chakwal, Pakistan, Bestway Cement is expanding solar capacity to 32.34MW, generating over a quarter of its plant's electricity. General manager Abdul Waheed says solar is "the only way we can compete" as rivals adopt similar strategies. Globally, small-scale solar capacity reached nearly 1.2 terawatts by end of 2025, roughly three times global nuclear capacity, driven by cheap Chinese photovoltaic panels.

This revolution brings cleaner energy and lower bills to millions, especially in developing nations where people gain reliable electricity through individual installations rather than massive infrastructure. However, the ungovernable influx creates risks: power infrastructure wasn't designed for bidirectional flow from self-generation.

In Karachi, K-Electric CEO Syed Muhammad Taha calls rooftop solar a "curse and blessing" as wealthy Defence Housing Authority customers install panels, reducing utility revenue needed for grid maintenance. Josefin Berg of S&P Global notes distribution grids may be unprepared for big electricity influxes, raising questions about who pays grid charges. Professor Janusz Bialek of Imperial College London warns that rapidly increasing renewables cause profound system behavior changes "we do not yet fully understand," illustrated by last year's Spain-Portugal blackout. The UK and US states now approve "plug and play" panels, adding forecasting unpredictability.