Solar Panel Rates Drop in Pakistan Amid Net Metering Cuts

Solar panel rates have dropped in Pakistan following the government’s decision to drastically reduce net metering rates, triggering immediate market reactions and industry-wide concern.

In response to the government’s recent plan to slash buyback rates for solar electricity, solar panel rates in Pakistan have fallen sharply—by as much as 25% in some regions. The impact has been particularly noticeable in Hyderabad and other areas of Sindh. For instance, Grade-A 585-watt panels, once priced at Rs22,000, are now available for around Rs16,500.

Industry analysts directly attribute this price decline to the reduced financial incentive for solar producers, a result of the government’s revised net metering structure. The move, although intended to promote renewable energy, has sparked criticism for undermining investor confidence.

Last month, Solar Association Chairman Adil Mahmood held a press conference to voice strong opposition to the new rates. He warned that the abrupt policy shift could endanger both ongoing and upcoming solar projects. Mahmood emphasized that national leaders, including the President and Prime Minister, had previously championed solar energy adoption. However, the new policy represents a significant reversal.

As of now, the market shows a consistent downward trend in solar panel pricing. Imported 545W panels are being sold at Rs16,500, while popular brands such as Canadian and JA range from Rs17,800 to Rs20,500.

Despite the affordability, stakeholders in the renewable energy space are alarmed. Experts argue that ongoing uncertainty and lack of consistent policy support could derail Pakistan’s progress toward sustainable energy goals, even as solar panel rates drop in Pakistan.