The prices of solar panels in Pakistan have suddenly dropped to the lowest level in the history of the industry, ranging from Rs. 30-32 per watt. This significant price reduction is attributed to two key factors: The solar energy market in Pakistan has experienced massive growth since 2023, with imports from China helping importers meet the rising demand for net metering solutions. The price of lithium batteries, a critical component of solar energy systems, has fallen by almost 50% in the past 12 months on the global market.

This sharp decline in battery costs has directly impacted the overall prices of solar panels in Pakistan. However, the cost reduction has not been witnessed in the domestic dry battery market, as importers have been reluctant to lower prices for local buyers. This suggests that the solar panel price drop is primarily driven by the significant decline in lithium battery prices worldwide. The availability of cheaper and more reliable solar energy solutions has forced thousands of consumers in Pakistan to switch from the expensive grid electricity, further fueling the growth of the country’s solar energy market.

Credit: Independent News Pakistan