Solar panel prices have jumped sharply across Pakistan ahead of a proposed 18% sales tax on imports, expected from July 1, 2025. Though the tax is still pending formal approval, many sellers have already raised prices. This early increase has shocked consumers and stirred tension in the market. Some buyers are walking away after learning of new costs.
Traders say the price of a 5kW solar system, including battery and inverter, now ranges between Rs800,000 to Rs850,000. That’s a steep jump from pre-budget rates of around Rs700,000. Even smaller systems like 3kW have seen price hikes of Rs100,000 or more. Traders argue they are not responsible for the increase and blame importers for creating panic.
Pakistan’s solar market heavily depends on Chinese products, as local panel manufacturing remains limited. Traders fear that higher costs will push potential buyers away and slow down the country’s shift to solar energy. The sudden spike in prices could also lead to lower sales and market uncertainty in the coming months.
The Pakistan Solar Association (PSA) has strongly opposed the tax and urged the government to withdraw the proposal. PSA Chairperson Waqas Moosa warned that making solar more expensive will hurt both consumers and national climate goals. He said it would discourage investment and make Pakistan more reliant on costly fossil fuel imports.
While some industry voices support local manufacturing, they say the government should reduce duties on machinery and raw materials instead. Without proper policy support, the 18% tax could lead to market chaos, smuggling, and grey market sales. The PSA has asked for a balanced plan that encourages clean energy, supports industry growth, and protects consumer interests.