Solar panel prices have soared in local markets ahead of the proposed 18% sales tax on solar imports, expected to be implemented from July 1, pending federal budget approval.
Traders at Karachi’s Regal Chowk in Saddar attribute the price hike to importers, noting that many customers were either stunned by the increase or rushed to buy systems fearing further price jumps. One trader reported that a 5kW solar setup, including an inverter, water-based battery, iron frames, wiring, and installation, now costs between Rs. 600,000 and Rs. 700,000. Meanwhile, a 3kW system is priced at Rs. 400,000–500,000, and a 6kW setup ranges from Rs. 700,000 to Rs. 800,000.
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Systems using lithium batteries are even more expensive. A 5kW system with a lithium battery now costs between Rs. 800,000 and Rs. 850,000—up from Rs. 700,000–750,000 before the FY26 budget announcement. A 3kW system with a lithium battery has risen to Rs. 750,000, while the same setup with a water-based battery is available for Rs. 350,000–400,000.
Traders cautioned that without government incentives such as tax exemptions or the creation of tax-free zones, the proposed tax could encourage smuggling through unofficial channels. One seller suggested introducing a 5% protective duty on finished solar panels and called on the government to boost local manufacturing and provide financing options to stabilize market prices and meet growing demand.
