Solar panel rates increase from April 2026 after policy shift

ISLAMABAD: A new policy from China, the world’s largest producer of solar equipment, is expected to increase solar panel prices globally, affecting Pakistan, which is rapidly expanding its solar market.

China’s Ministry of Finance and State Taxation Administration announced that export VAT exemptions for photovoltaic (PV) products will end from April 1, 2026. The export rebate on PV modules will be fully removed, and rebates on battery products will gradually phase out by 2027.

Industry experts say this move will put pressure on the global solar supply chain, likely causing higher prices for solar modules. Analysts predict that removing a 9% export rebate could directly increase module costs, reducing export profits by up to 51 yuan per standard module, which producers may pass on to buyers.

Impact on Pakistan

Pakistan depends heavily on imported solar panels, mostly from China. Rising global prices will directly affect the cost of local solar projects. This comes at a time when Pakistan’s solar market is growing fast, driven by high electricity rates and frequent power outages.

Rising raw material costs are also adding to the problem. Polysilicon prices have increased nearly 10% month-on-month, while silver prices have hit record highs, further pushing up solar module costs.

Current Solar Panel Prices in Pakistan

Solar panel prices have already jumped ahead of the summer season. The per-watt price has risen from Rs30 to Rs40, increasing the total cost of full solar setups by up to Rs200,000.

Latest Solar System Prices:

• 5 kW on-grid system: Rs650,000

• 7 kW system: Rs750,000

• 10 kW system: Rs1.1 million

• 12 kW system: Rs1.25 million

• 15 kW system: Rs1.5 million

With China’s new policy and rising material costs, solar energy in Pakistan is expected to become more expensive, impacting homeowners and businesses planning to invest in renewable energy.