Solar equipment prices jump ahead of upcoming budget

Prices of solar panels, inverters and lithium batteries have sharply increased across Pakistan ahead of the upcoming federal budget 2026-27, as fears grow over higher taxes on imported solar equipment. According to dealers and market sources, solar panel prices have gone up by as much as Rs4,000 per unit even before the new tax measures are officially implemented.

Solar panels with capacities of 585 watts, 645 watts, and 720 watts are currently being sold between Rs26,000 and Rs32,000 in the local market. Dealers say many shopkeepers have stopped or limited their stock purchases due to uncertainty over government tax policy, especially concerns that sales tax may rise from 10% to 18%.

This uncertainty has tightened supply in several areas, which has further pushed prices upward. The price of solar inverters has also increased by up to Rs20,000, while small solar systems ranging from 1 kilowatt to 3 kilowatts have become Rs5,000 to Rs10,000 more expensive.

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Lithium battery demand has also surged, causing prices to jump by as much as Rs20,000. A 5-kilowatt lithium battery is now being sold for around Rs260,000 in the market.

Dealers believe the rising trend is directly linked to expectations of higher taxes in the upcoming budget and uncertainty over import duties. They warned that if taxes are increased, solar installation costs will rise further, making it harder for households and businesses to afford renewable energy solutions.