Solar Panel Prices in Pakistan Drop Due to New Net Metering Policy, Experts Weigh In

In recent months, Pakistan has witnessed a significant decrease in solar panel prices, prompting experts to suggest that the country’s solar market may have crashed. This price reduction has sparked growing public interest in installing solar panels, but the reason behind the most recent drop in prices is being attributed to the government’s new net metering policy.

The government recently introduced a new policy that offers to buy electricity from new solar users at a rate of 10 rupees per unit, instead of the previous rate of 27 rupees per unit. Some individuals connected to the solar panel business believe that this policy change has led to a drop in prices in local solar markets.

Engineer Muhammad Hamza Rafi explained that the price decrease is indeed due to the government’s net metering policy adjustments, which have resulted in a decrease in demand, while supply remains high. He added that the price of solar panels has dropped by 5 rupees per watt, and after Eid, a further reduction of 2 to 3 rupees per watt is expected. He noted that the government’s net metering policy has greatly impacted solar users, particularly discouraging both new and existing consumers who benefited from the policy, ultimately harming the solar market.

Chairman of the Pakistan Solar Association, Waqas H. Musa, stated in an interview with V News that while there has been a minor decrease in solar panel prices, the reduction is very minimal—only 1 to 2 rupees per watt. He mentioned that this price fluctuation is seasonal, as solar business tends to slow down during Ramadan, leading to price decreases. However, he expected prices to rise slightly after Ramadan, although not by a significant margin. He also attributed the minor price drop to the decline in solar panel prices in China.

Musa further commented that the government’s claim that its net metering policy had a significant impact on the price drop is misleading. He stated that only a small, affluent section of solar users is affected by the policy, and that the government’s actions have already damaged the solar market. Thus, the credit for the price reduction should not be given to the government.

Director of Re-Energy, Sharjeel Ahmed Salehri, mentioned that solar panel prices have decreased by approximately 7 to 8 percent, mainly due to a large influx of imported panels and the upcoming Chinese New Year holidays. He clarified that the current retail price of solar panels is around 34 to 35 rupees per watt, and it is not accurate to attribute this price drop solely to the government’s net metering policy.