Solar panel prices fall after new government policy changes

Refuting rumours of new taxes on solar power, Minister for Power Awais Leghari stated that the government has no such plans in the near future. photo: file
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Pakistan's solar industry is facing uncertainty following recent amendments to the net metering policy, with solar panel prices seeing a decline.
As a result of these changes, consumers now find solar energy options more affordable, with prices dropping by Rs35,000 to Rs175,000.
A 5 kW solar system now costs between Rs500,000 and Rs550,000, while larger systems like a 10 kW unit are priced above Rs800,000.
The price reduction follows the government's decision to lower the buyback rate for solar net metering to Rs10 per unit and implement net billing for new consumers.
The move aims to control rising grid electricity costs but has sparked criticism from industry leaders who argue it could negatively impact consumers and the solar sector.
Meanwhile, the Pakistan Solar Association (PSA) has expressed concerns over the new regulations, particularly their impact on residential and small-to-medium enterprises (SMEs).
PSA Chairman Waqas Moosa noted that the amendments will increase the payback period for on-grid solar systems from 1.5 years to around three years, making off-grid, hybrid solar systems more appealing.
These hybrid systems, which often incorporate advanced lithium-ion batteries, offer shorter payback periods, potentially shifting demand away from grid-connected systems.
The PSA has called on the government to engage more with industry stakeholders before finalising such policy changes, warning that the new approach could reduce grid demand and drive up electricity prices for remaining consumers.

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