Solar panel prices may drop further in Pakistan, as per reports. In 2025, the solar market of Pakistan will change at a rapid growth rate. Since the start of 2025, the market has seen a significant decline in prices by 53%, and this number increases as the market is set to grow. The industry experts say it may happen due to the lower rate in the International market and the surplus amount of supply of solar panels in the local market. As the electricity prices are touching the sky, these are encouraging signs for consumers to choose a cost-effective way of energy and lower their bills in the upcoming summer.
Current Solar Panel Prices in Pakistan
Since May 2025, the Pakistani market has seen a huge dip in the prices of solar panels. One must take a look to see the updated prices.
- Per Watt Price: At the start of 2025, the per-watt price of solar panels ranged between 30-38 pkr, and now drops down to 24-28 pkr per watt.
- The price of a 5 kw system is set up to 430,000, and now it has also dropped down to 215,000.
- However, the prices of Inverters and batteries remain unchanged.
Solar Panel Prices May Drop Further in Pakistan in 2025. Why?
There are several reasons for declining prices, as now we can see that it may drop further till December 2025. Let’s take a complete look at these factors.
Global Oversupply of Chinese Solar Panels
China is a global producer and manufacturer of the world. It mainly produces 80% solar panels of the world which is a huge number. In previous years, they spent a higher amount on investments in producing the solar panels. As a result, the world shows a huge surplus in terms of solar panels, which plays a role in driving the prices up by 30%. Pakistan is a global importer of solar panels and imported 17GW in 2024 at a very low price.
A report from CNN on 1 May 2025, sums up the solar revolution of Pakistan with China and says they imported more than the double of solar panels form previous years. The industry experts suggest it would goes down to 20 pkr per watt in near future due to the surplus supply of solar panels.
US-China Tariff War
The United States imposed a huge amount of tariff on Chinese products and solar panels are one of them, A report from Aaj English TV on April 28, 2025 says that Pakistan can take a lot of benefits from China as they look for another buyers for solar panels as US imposes tariff on them, and Pakistan can buy these panels at very low rate because Chinese companies are producing solar panels in very large numbers. A Grade solar panels, such as Longi, Jinko, and Trina Solar, prices may further drop down to 5-7 pkr per watt as these panels as imported at very low and discounted prices.
Intense Market Competition
The large number of local and international suppliers and small retailers, and big firms such as Premier Energy and Hadron Solar are competing in the solar market of Pakistan to gain more customers. As the competition arises, these companies are offering discounted prices for solar panels and also allow flexible payment plans to gain a competitive edge in the market and gain more customers. As the competition increases and the surplus amount of solar panels will lead to a 2-5% decline in prices shortly.
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Rumors on Fixed Solar Rate
Reports were circulating on social media platforms about imposing a fixed tax rate of solar energy by levying a tax of Rs 2,000 per kilowatt on installing solar panels for residential or commercial purposes. However, the Power Division dismissed these rumors by saying that they did not send any such summary to the government. On cutting the tariff for solar net metering, the Power Division said that the current system is promoting unhealthy investment in the sector.
Conclusion
Solar panel prices may drop further in Pakistan in 2025, because of a surplus supply of solar panels from China, as the US and China tariff war emerges, it gives direct benefits to Pakistan and also the solar consumers in Pakistan. Prices may further drop down to 5-7 pkr per watt in 2025 and can go beyond as well if the tariff war lasts for a longer period of time. Pakistan is a major importer of Chinese solar panels despite its conflict with India. Lower solar panel prices bring more consumers to shift to solar energy and enjoy its lifelong benefits.
