Solar panel prices increase in Pakistan – Check new rates

Pakistan is likely to see an increase in solar panel prices as the International Monetary Fund (IMF) has urged the government to revoke tax exemptions on solar systems.

During ongoing economic review discussions under the $7 billion loan program, the IMF delegation argued that solar panels are primarily used by wealthy individuals, making tax exemptions unnecessary. If implemented, this move will significantly raise solar panel costs, making solar energy systems more expensive for consumers.

Current Solar Panel Prices in Pakistan

The price of solar panels in Pakistan varies based on brand and quality. On average, the cost per watt stands at Rs32 in the local market.

Government Reduces Solar Net Metering Buyback Rate

In a separate development, the Economic Coordination Committee (ECC) has slashed the buyback rate for solar net metering from Rs27 per unit to just Rs10 per unit. This decision has sparked concerns among solar consumers who now face major financial losses.

The revised policy will apply to all new solar installations, while existing agreements under the NEPRA Distributed Generation and Net Metering Regulations, 2015, will remain unaffected. The reduction in buyback rates is expected to slow down the rapid growth of Pakistan’s solar energy sector, which had been thriving due to falling solar panel prices.

With over 280,000 solar net-metering users in the country, the government’s decision aims to balance financial pressures on grid consumers. However, many are now questioning the long-term viability of investing in solar energy under the new pricing framework.

Read More: Solar net metering rates in Pakistan – March 2025