Buyers get relief as solar prices fall after budget

Solar system prices have fallen sharply in electronics markets after the federal government decided not to impose new taxes on solar equipment in the 2026-27 budget. The decision reversed a recent rise in prices that had been driven by market speculation.

According to market traders, lithium battery prices have dropped by around Rs30,000, while inverter prices have fallen by up to Rs10,000. Solar panel prices have also decreased by about Rs3,000, providing significant relief to consumers planning to install solar systems.

Before the federal budget, many dealers increased prices after rumours suggested that the government would introduce higher taxes on solar products. Some traders also stockpiled solar equipment in anticipation of selling it at higher prices after the budget announcement.

Also Read: Punjab’s ‘Apni Chhat Apna Ghar’ Program Completes Over 105,000 Homes

However, the government did not announce any additional taxes on solar equipment. At the same time, ample inventories and continued imports increased market supply, while consumer demand slowed. As a result, traders reduced prices to clear their existing stock.

Currently, 645W, 585W and 720W solar panels are selling for around Rs45 per watt, down from about Rs50 per watt just a few days ago. Meanwhile, the price of a 5kWh lithium battery has fallen to around Rs230,000, while 3kW to 5kW inverters are now available for Rs120,000 to Rs300,000, depending on the brand and specifications.

Market participants expect prices to remain stable in the near term as supply continues to meet demand and concerns over new taxes on solar equipment have eased.