Amid increasing demand due to sky-rocketing power bills, the prices of solar panels in Pakistan have fallen sharply making it easier for consumers to install the cheaper alternative.

The decrease in prices of the panels will also lessen consumers’ electricity expenses incurred via traditional power sources.

According to dealers, the prices have crashed due to an ample supply of equipment in the local market and a downward trend in rates internationally, adding the rates have come down by 30% in the last six months.

They shared that the per watt price has decreased to Rs40 or more in the market and panels of different brands are currently available at Rs37/watt — a massive decline compared to Rs80/watt in 2022.

The dealers said that installation of a 5kW solar power system now costs cheaper by Rs215,000 while the price of a 5kW system has decreased by Rs430,000.

However, there’s no change in the rates of inverters and batteries.

This declining trend is expected to continue.

Last month, the Power Division also dismissed rumours claiming that the government was all set to impose a fixed tax on solar power.

Reports were circulating on social media platforms that a summary had been moved to introduce the fixed tax on solar electricity.

The reports further said that the CPPA’s proposal suggests levying a tax of Rs2,000 per kilowatt on those installing solar panels for residential or commercial purposes.

However, Power Division termed the rumours “baseless”.

“The Central Power Purchasing Agency or Power Division has not sent any such summary to the government in this regard.”

Hinting at cutting tariff for solar net metering, the Power Division, however, said that the prevailing system is promoting unhealthy investment in the sector.