Lahore: In a significant development for Pakistan’s renewable energy sector, solar panel prices have fallen to unprecedented levels. This has made solar energy more accessible to consumers across the country.
Record Breaking Price Drop
By April 2025, the cost of solar panels in Pakistan had come down to Rs 3.5 crore. 28 per watt, the lowest price point in the country’s history. This decline is a continuation of the downward trend seen over the past year. In which the prices are falling below one lakh rupees. Rs 39-40 per watt in April 2024. 30-32 per watt by August 2024
Factors contributing to the decrease in price
A number of factors have contributed to this significant drop in price:
- Global oversupply : The increase in imports, especially from China, has led to oversupply in the local market. In 2023, Pakistan imported 4GW of solar panels, and imports increased to 7.5 GW from January to April 2024.
- Decrease in lithium battery prices : Internationally, lithium battery prices have decreased by about 50% over the past year, This reduces the cost of solar panels.
- Policy Effect: The Pakistani government’s 2024-2025 budget introduced tax exemptions on the import of solar panels and related equipment, further reducing consumer spending.
Impact on the cost of the solar system
The reduction in panel prices has reduced the overall cost of solar power systems.At present, the cost of a 5 kW system is between Rs.500,000 and Rs.550,000, while a 10 kW system costs more than Rs. 800,000.
Industry’s response and outlook for the future
Although the reduction in price benefits the consumer, But this has created challenges for importers. Those who have bought panels at higher prices.The market is facing a price war. Some importers are selling at a loss to stay competitive
Despite these challenges, the outlook for solar energy in Pakistan remains positive.The government’s commitment to renewable energy coupled with the decreasing cost is expected to drive further adoption of solar solutions across the country.
As Pakistan continues to deal with its energy challenges, The current trend in solar panel prices provides a promising opportunity for sustainable and affordable energy solutions.
