ISLAMABAD: Solar panel prices in Pakistan have risen sharply ahead of the federal budget, with market participants attributing the increase largely to expectations of higher taxes on imported solar equipment in the upcoming fiscal year.
Over the past few days, prices of solar panels have increased by Rs7,000 to Rs9,000 per unit, raising concerns among households and businesses planning to switch to solar energy. The sudden jump comes as reports suggest the government is considering increasing the General Sales Tax (GST) on solar panels from 10 percent to 18 percent as part of ongoing budget discussions and negotiations with the International Monetary Fund (IMF).
According to market sources, a 585-watt solar panel that was previously available for around Rs18,000 is now being sold for up to Rs27,000.
Similarly, the price of a 645-watt solar panel has increased from Rs22,000 to Rs31,200, while a 720-watt panel has risen from Rs25,000 to Rs33,500.
Budget uncertainty fuels market reaction
Industry stakeholders say uncertainty surrounding the federal budget has prompted importers, distributors, and dealers to adjust prices in anticipation of potential tax changes.
Reports indicate that discussions are under way regarding the application of the standard 18 percent GST rate to solar equipment, a move that could significantly increase the cost of solar installations if approved.
While no final decision has been announced by the government, expectations of higher taxation have already affected market sentiment, contributing to price increases before the budget’s presentation.
Inverter prices may also rise
Market participants warn that the impact may not be limited to solar panels. Concerns are also growing over possible increases in inverter prices, which could further raise the overall cost of residential and commercial solar systems.
The solar sector has experienced strong growth in recent years as consumers increasingly turn to renewable energy solutions to reduce electricity expenses and manage power supply challenges.
Buyers await budget decision
Consumers and industry stakeholders are now closely watching the federal budget for clarity on taxation policies affecting the renewable energy sector.
If higher GST rates are approved, analysts believe the cost of solar adoption could increase further. However, until the budget is formally announced, the proposed tax measures remain under discussion.
Also Read: Budget 2026-27 may end tax relief for EVs, hybrid vehicles and solar panels
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