Cheap solar panels hit local markets

Amid soaring power bills, the cost of solar panels in Pakistan has significantly dropped, providing consumers with a more affordable alternative to traditional electricity sources.

This reduction in panel prices is expected to substantially lower the electricity expenses for consumers. Dealers attribute the price crash to a surplus of equipment in the local market and a decline in international rates, noting a 30% reduction in the past six months.

The price per watt has decreased notably in the market, with panels now available at Rs37 per watt, a sharp fall from Rs80 per watt in 2022, according to the dealers. They also mentioned that the installation cost of a 5kw solar power system has become cheaper by Rs215,000, while the overall price for such a system has reduced by Rs430,000.

However, the prices of inverters and batteries remain unchanged, and the declining trend in panel costs is expected to continue.

Additionally, last month, the Power Division addressed and dismissed circulating rumors that the government planned to impose a fixed tax on solar power.

Social media platforms had spread claims that a summary was proposed to levy a Rs2,000 per kilowatt tax on those installing solar panels for residential or commercial purposes.

The Power Division clarified these rumors as “baseless,” stating that neither the Central Power Purchasing Agency nor the Power Division had forwarded any such summary to the government. Despite this clarification, the Power Division hinted at a potential reduction in tariffs for solar net metering, noting that the current system may be encouraging unhealthy investments in the sector.