Solar Panel Prices Drop by Up to Rs6,000 After Market Correction in Pakistan

Islamabad (News Desk) — Solar panel prices in the local market have witnessed a significant decline, offering relief to consumers struggling with rising electricity costs and prolonged load-shedding.

According to media reports, prices of solar panels ranging from 585W, 620W, 645W, and 725W have dropped by around 16 percent, with reductions of Rs5,000 to Rs6,000 per panel in the domestic market.

The price adjustment comes after pre-budget speculation about an increase in sales tax from 10 percent to 18 percent on solar equipment, which had previously triggered hoarding and artificial price hikes by traders. However, no such tax increase was included in the federal budget, leading to a market correction.

As a result, the price of a 585W solar panel fell from Rs30,000 to Rs25,000, while the 645W panel dropped from Rs35,000 to Rs29,400. Similarly, the 620W panel decreased from Rs32,000 to Rs26,000, and the 725W panel fell from Rs36,000 to Rs30,000.

Market sources also reported that inverter prices, which had previously surged due to artificial shortages, have now decreased by Rs50,000 to Rs70,000 following the correction in solar panel prices.

However, lithium battery prices continue to rise due to increasing demand, as more consumers shift toward off-grid solar systems amid reduced net metering incentives.

Industry stakeholders say that households are increasingly relying on lithium battery-based backup systems to cope with electricity outages.

Solar distributor Saud Farooq stated that the post-budget price drop has created a favorable opportunity for consumers to install solar systems, calling solar energy the most affordable and sustainable alternative for electricity needs. He also suggested that eliminating sales tax on solar panels could further reduce costs and attract foreign investment, particularly from countries like China.