Solar Panel Prices May Go Up in Pakistan
Solar panel prices may go up in Pakistan amid the Middle East conflict between Iran and Israel. The local importer in Pakistan says this ongoing conflict will impact major shipping routes, which will lead to an increase in the costs of solar panels in Pakistan. This will put an extra amount of burden on local consumers. The prices of electricity are at an extreme peak in Pakistan and solar panels help them to meet their energy needs but the increasing prices of solar panels will be a huge bomb for people back in Pakistan.
Shipping Costs
Director of Diwan International Pvt Ltd, Muhammad Faaz Diwan, said, Transportation costs have increased 100% in the last two months. The charges of one container have gone up to 2500$-3000$ in recent months, which was previously $1200 before this conflict. He says the US tariff on China and this conflict play a major role in increasing the shipment cost. The solar panel prices may go up in Pakistan from 28-32 rupees per watt as the importer is paying 3% advance tax, and if the government imposes 10% more, then it will become 13% which will lead to higher prices because of high importing duties.
Industry Experts
Energy is still a crisis in Pakistan because of load shedding and higher electricity costs. Solar panels are the ultimate solution for them, but imposing taxes will make the prices much higher, they will remain within the budget of a middle-class family if they opt for long-term savings. The experts denied the claim of shortages of solar panels made by the Ministry of Finance, saying that in this scenario, the prices will skyrocket, but they will remain constant. He further said 2% of solar panels are assembled locally, and the remaining 98% are imported solar panels. Locally assembled panels are less reliable, he added.
Further Addition
Solar panels should be duty-free in the country until the establishment of a tier 1 manufacturing facility, unless it’s an act of shame. There is always room for a government-oriented manufacturing facility in the country. Inverex CEO Muhammad Zakir Ali stated that the government is creating uncertainty among businesses and users because of their policies on taxation. Pakistan is one of the largest importers of solar energy by importing 17 gigawatts in 2024, and it is expected to go to 8 gigawatts in the first half of 2025. This figure will explain the rapidly increasing demand for solar panels in the country.
Financing and Local Manufacturing
The demand for solar panels is increasing at a higher rate in the country due to the high electricity crisis. The Chairman of Fusion Tech, Salim Memon, said, the government should start manufacturing in the country on a large scale as soon as possible and should provide easy financing schemes to the needy ones. It will help in long-term growth as it reduces the outflow of money from Pakistan. As of now, the 95% installed panels are imported, and 5% are locally assembled panels that are not meeting the quality standards. It’s the right time for local manufacturing of high-quality panels.
Conclusion
The ongoing situation of the world is terrifying. This situation will lead to an increase in the prices of solar panels in Pakistan due to higher transportation expenses. The industry experts in the county suggest now is the right time to assemble high-quality solar panels locally. They said the demand is on the higher side, but the government policies are creating buzz among consumers and businesses. They said the government-led high manufacturing facility will solve lots of the problems and will create new jobs in the country as well. The government should make the policies clearer than ever and show its support for achieving environmental sustainability in the country.
