Prices of solar panels halve in Pakistan

The prices of solar panels available in Pakistani markets have halved since last year amid a decline in international rates to all-time lows.

Global panel prices plummeted due to more efficient manufacturing, excess supply and a price reduction of about 1-2 cents per watt by Chinese manufacturers, importers told Nukta.

Solar panels now cost PKR 34 per watt in Pakistan, down 50% from a high of PKR 70 per watt in June 2023 and 15.5% from PKR 45 per watt in January.

Installation of an on-grid 10 kilo volt (kV) solar system now costs PKR 1.2 million compared to PKR 2.1 million in June 2023.

Meanwhile, a 6kV system, which is sufficient to cover an average household's energy needs, now costs Rs0.75 million compared to around Rs1.4 million in 2023.

On-grid systems use electricity generated through solar panels during the day and rely on power from the grid at night.

On the other hand, a hybrid system utilizes batteries to store the generated electricity and is not connected to the grid. A 6kV hybrid system usually requires four batteries of 280 amperes each, or a 5kV lithium battery.

However, battery and inverter prices haven't escalated much over the year. A 2,850 Amps battery costs PKR 90,000, while the 5KV lithium battery costs PKR 450,000.

Meanwhile, the price of 3-4kVA inverters is PKR 100,000. The price of 5-6kVA inverters is around PKR 200,000 while the price of a 10kVA inverter is PKR 300,000.

Inexpensive panels are good for developers and consumers because projects cost less. But businesses that make and sell panels are having a rough time, especially those that had a lot of inventory left over from when prices were higher.

According to solar panels importer Faisal Bawani, last year, panels totaling four gigawatts of energy were imported via 12,000 containers. Compared to this, from January to April, panels totaling 7.5GW of energy were imported via 22,500 containers.

As a result, the prices of different types of solar panels in the local market have decreased from PKR 45 to PKR 38 per watt.