LAHORE (Kashmir English): The recent decline in prices of petroleum products and the absence of new taxes on solar panel-related products in the federal budget have begun to impact the solar panel market, with prices witnessing a significant reduction across the country.
According to market sources, solar panel prices have fallen by Rs4,000 to Rs9,000 in recent weeks, while a further decline is expected in the coming days.
Traders said a record decline of around Rs2,000 has been observed in the prices of various solar panel models over the last few days alone. Prices of panels of different capacities have also decreased by up to Rs2,000 following the budget announcement.
Market sources predict that solar panel prices could fall by an additional Rs7,000 over the next two weeks if current trends continue.
Lithium battery prices expected to reduce
Meanwhile, lithium battery prices are also expected to decline substantially, with estimates suggesting reductions ranging from Rs25,000 to as much as Rs200,000 depending on capacity and specifications.
According to industry sources, solar panel and battery prices had surged ahead of the federal budget amid speculation that the government would impose a sales tax ranging from 11 to 18 percent on solar systems.
Importers and retailers reportedly increased prices by Rs5,000 to Rs7,000 per panel in anticipation of the proposal of tax increase on solar panels and related equipment in the federal budget 2026-27.
However, those reports turned out to be false as no such tax increase was announced in the budget.
Following the clarification, prices have started returning to normal levels, bringing relief to consumers interested in switching to renewable energy solutions.
During a technical briefing on the federal budget, the Federal Board of Revenue (FBR) Member Hamid Atiq Sarwar clarified that no new tax has been imposed on solar panels and rejected the impression that solar energy has contributed to higher electricity prices.
He said solar energy systems have played a significant role in protecting consumers from expensive electricity and promoting alternative energy sources across the country.
The FBR official added that the government has set a revenue collection target of Rs15.264 trillion for the next fiscal year. To achieve this target, the focus will remain on improving tax administration, expanding the tax base, and strengthening enforcement measures rather than introducing new taxes.
