Metropolitan Cities in Pakistan are experiencing rapid growth of urban population, resulted in high energy demand and severe energy crisis. So, in this regard, solar energy can play a vital role to cater the demand of energy. Solar can be said as a topographical asset of Pakistan due to its geographical location. Residential dwelling units consume more amount of energy as compared to other. Energy is fundamental and strategic tool even to attain the minimum quality of life. Pakistan is an energy deficient country where a large fraction of the population still does not have access to modern day energy service such as electricity. To overcome energy shortage Pakistan needs to develop its indigenous energy resources like solar. It is decided to promote the sustainable development which in our case is through the provision of energy efficient solar housing. This can lead to provide an effective, efficient, affordable and ecofriendly energy source and consumption in Pakistan.  Hence, it is seriously felt that there is an urgent need for quick switch over of energy systems from conventional to renewable that are sustainable and can meet the present and projected energy demands of our country. Of all the renewable energy sources Solar energy technologies have been the most successfully applied because they are the only systems that can be incorporated easily into the urban fabric. In addition, the short fossil fuel horizons that are predicted will drive the markets for solar technologies. For these reasons, the cities of the future will be powered by solar energy however to a greater or lesser extent depending on the city form and location.

For this Lahore City has been selected as case study area, data has collected from different secondary source and interviews of professionals. After analysis of data conclusions drawn, this paper recommends the need of good and concrete policy to be implemented to develop solar as a source of energy in housing sector to meet household energy demand. Policy issues are also required to be considered with regard to newly emerging challenges in energy sector.