As power bills soar in Pakistan, the demand for solar panels has increased significantly. This surge in interest has coincided with a sharp decrease in solar panel prices, making them a more affordable alternative for consumers.
Dealers report that prices have dropped by 30% in the last six months, driven by an ample supply of solar equipment in the local market and declining international rates. The cost per watt has reduced to Rs40, with some brands offering panels as low as Rs37/watt, a significant decrease from Rs80/watt in 2022.
The installation of a 5kW solar power system is now Rs215,000 cheaper, and the overall price for such a system has fallen by Rs430,000. However, the prices of inverters and batteries remain unchanged.
This downward trend in solar panel prices is expected to continue.
During these developments last month, the Power Division refuted rumours circulating on social media that the government planned to impose a fixed tax on solar power. These rumours suggested that a proposal was submitted to tax solar installations at Rs2,000 per kilowatt for residential or commercial use.
The Power Division dismissed these claims as “baseless,” clarifying that neither the Central Power Purchasing Agency nor the Power Division had proposed such a tax to the government.
Despite this, the Power Division acknowledged that the current solar net metering tariff might encourage unsustainable investment.
