The global warming and emission of greenhouse gasses pushed the world economy towards renewable sources of energy. Solar energy is one of the essential types of an alternative energy source. Pakistan economy is agriculture based and development in this sector will enhance the overall growth of the country. In past, there was very limited use of solar energy due to the lack of awareness in Pakistan. This study enlightens the socio-economic impact of solar energy on farmer livelihood of District Vehari. This is a quantitative study and primary data has been collected through well-structured questionnaire. Structure equation modelling (SEM) is adopted to analyse the impact of observed and unobserved variables on farmer livelihood as well as socio-economic well-being. A comparison of adopter and non-adopter has been done. Socio-economic well-being of both showing positive and significant on farmer livelihood but strength of impact in case of users of solar pump is more than non-users. In case of total income partial mediation takes place and has direct and indirect (through solar energy) impact is positive and significant on socio-economic well-being. Highest education in family has insignificant impact on solar energy showing that it does not play any role in adoption. The actual reason of non-adoption that has been observed is high cost of solar panel so there is need subsidised the installation of it by the government. Supervisor: Dr. Usman Mustafa