Ahead of the federal budget, a new pricing trend has emerged in the solar industry, with a significant increase recorded in the prices of solar panels of various capacities.
According to details, this sudden rise in solar panel prices has raised concerns among consumers and investors.
Market sources say the price of solar panels has increased by Rs7,000 to Rs9,000 per unit. After the hike, a 585-watt solar panel, which was previously available for around Rs18,000, has now reached up to Rs27,000.
Similarly, the price of a 645-watt solar panel has increased from Rs22,000 to Rs31,200, while the 720-watt panel has risen from Rs25,000 to Rs33,500.
On the other hand, market stakeholders say that not only solar panels but inverter prices are also expected to rise in the coming days.
Solar panels likely to get more expensive in Budget 2026–27
The cost of setting up solar power systems in Pakistan is likely to increase significantly as the government plans to raise taxes on solar panels in the upcoming federal budget 2026–27.
Sources say the International Monetary Fund (IMF) has opposed tax exemptions that mainly benefit wealthy groups and has asked Pakistan to withdraw them. The IMF has also classified solar panels, electric vehicles, and hybrid vehicles as luxury items used mostly by affluent people.
In line with IMF conditions, the government is considering raising sales tax on solar panels from 10% to 18% in the new budget. This 8% increase could raise installation costs and make solar energy less affordable for many consumers.
Officials are currently negotiating with the IMF for a new long-term bailout program. Sources say Pakistan’s economic situation and IMF conditions are pushing the government to widen the tax base and remove subsidies.
The possible tax hike comes at a time when many middle-class families are turning to solar energy to reduce high electricity bills. Experts warn that the move could slow down Pakistan’s shift toward renewable energy.
Also read: Solar panels likely to get more expensive in Budget 2026–27
