A record surge has been witnessed in solar panel prices in Lahore’s market, with systems ranging from 5 kW to 15 kW becoming significantly more expensive.
The prices of solar systems have increased by Rs150,000 to Rs200,000.
The price of a 5 kW solar system has increased by Rs150,000, bringing the new rate to Rs650,000. Similarly, the 7 kW system has seen an increase of Rs200,000, raising its price to Rs825,000.
Likewise, the 10 kW solar system has jumped from Rs900,000 to Rs1.1 million, while the 12 kW system has increased by Rs200,000 and is now priced at Rs1.25 million.
The price of a 15 kW solar system has also risen to Rs1.45 million, compared to its previous rate of around Rs1.3 million.
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 panel prices increase sharply ahead of budget
