Solar panels, inverters, lithium batteries' prices surge ahead of budget

Prices of solar panels, inverters and lithium batteries have surged in Pakistan ahead of the implementation of higher taxes on imported solar equipment in the upcoming federal budget 2026-27.

According to solar system dealers and market participants, prices of solar panels have increased by up to Rs4,000 per unit even before the tax changes take effect.

Solar panels with capacities of 585 watts, 645 watts and 720 watts are currently being sold in the market for between Rs26,000 and Rs32,000.

The majority of dealers have reportedly held back their inventories as they await clarity on the government’s proposed tax measures, fearing that the sales tax rate on solar panels and other equipment could be raised from the current 10% to 18%.

The move has tightened supplies in parts of the market and contributed to rising prices, dealers said.

The price of solar inverters has also risen by as much as Rs20,000, while solar systems ranging from 1 kilowatt to 3 kilowatts have become Rs5,000 to Rs10,000 more expensive.

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Demand for lithium batteries has also increased sharply, pushing prices higher by up to Rs20,000. A 5-kilowatt lithium battery is currently being sold for as much as Rs260,000 in the local market.

Dealers attributed the increase in prices to uncertainty surrounding the government’s tax plans for solar imports and expectations of higher sales taxes in the upcoming budget.

They warned that any increase in taxation would further raise the cost of solar installations for households and businesses, potentially slowing the adoption of renewable energy solutions at a time of persistently high electricity costs.