Solar panel prices in Pakistan have started to decline following recent amendments to the country’s net metering policy, offering relief to consumers seeking renewable energy solutions. Reports indicate that the cost of installing solar power systems has decreased by Rs35,000 to Rs175,000, with a 5 kW system now priced between Rs5 lac and Rs5.5 lac, while a 7 kW system costs around Rs6 lac.
Larger systems, such as 10 kW, now exceed Rs8 lac, and those between 12-15 kW are priced above Rs1.2 million. This price reduction follows the federal government’s decision to cut the buyback rate for solar net metering to Rs10 per unit and introduce net billing for new consumers. The government stated that these changes aim to address rising grid electricity costs and balance the financial burden on grid consumers.
Government Campaign Against Solar Energy
The federal government has recently released an advertisement that targets residential solar energy users, claiming their adoption of solar power contributes to high electricity bills for non-solar consumers. The ad argues that the growing number of solar energy users increases capacity charges, which are then passed on to regular electricity consumers, resulting in higher bills. This move has sparked backlash from solar energy advocates, who argue that solar adoption should be encouraged as part of Pakistan’s transition to renewable energy, rather than vilified for the financial challenges faced by the grid system.
Policy changes have sparked criticism from several ministers who warn that they could hurt both consumers and the solar market. Despite the price drop making solar energy more accessible, particularly for households and businesses looking for alternatives to expensive grid electricity, the Pakistan Solar Association (PSA) has raised concerns.
The PSA warns that the new regulations could negatively impact the solar industry, particularly for residential consumers and small-to-medium enterprises (SMEs). Waqas Moosa, Chairman of the PSA, explained that the policy changes would increase the payback period for on-grid solar systems to about three years, compared to the current average of 1.5 years. As a result, the shift toward hybrid, battery-powered solar systems is expected to grow, which could reduce demand for grid-connected services and increase electricity prices for the remaining consumers.
The PSA has urged the government to reconsider its marketing campaign and engage with stakeholders before implementing significant changes. Representing over 500 members, the PSA remains a vital voice in the solar sector in Pakistan.
