Solar Prices in Pakistan Going to Decrease More in Coming Days

In 2025, Pakistan’s solar energy market is undergoing significant changes, and the good news is that solar panel prices are dropping — and expected to fall even more in the coming months.

Current Solar Prices in Pakistan

As of April 2025, the market has already seen a major drop in solar panel prices. Here’s a quick look at the updated rates:

Per Watt Rate: Solar panels now cost around Rs. 28 per watt, compared to Rs. 30 to Rs. 36 earlier in the year.
5 kW Solar System: Available for around Rs. 550,000 to Rs. 600,000.
7 kW System: Priced near Rs. 700,000.

Why Solar Prices Are Likely to Drop Further in 2025

Several factors suggest that solar prices in Pakistan will continue to decrease in the upcoming months of 2025, particularly from June to December. Below are the key reasons:

1. Global Oversupply of Chinese Solar Panels

Context: China, which produces over 80% of the world’s solar panels, has been overproducing due to massive investments in manufacturing. This led to a global surplus, with prices falling 20–30% in 2024. Pakistan imported 17 GW of panels in 2024, more than double the previous year’s imports, at record-low costs.
Impact: The continued oversupply is expected to keep prices low or push them lower in 2025. A CNN report from May 1, 2025, notes that the “tumbling cost of solar panels from China” is fueling Pakistan’s solar revolution, a trend likely to persist.
Projection: Analysts estimate a potential 5–10% price drop by Q3 2025, bringing costs to PKR 24–27 per watt if supply chains remain stable.

2. US-China Tariff War

Context: The US has imposed tariffs on Chinese solar panels, restricting their market and pushing Chinese manufacturers to seek alternative markets like Pakistan. A report from Aaj English TV on April 28, 2025, suggests that Pakistan could benefit from lower prices as Chinese-backed factories redirect surplus panels.
Impact: Increased imports of discounted panels could drive prices down by PKR 2–3 per watt in Q3–Q4 2025, especially for Tier-1 brands like Longi, Jinko, and Trina Solar.

3. Intense Market Competition

Context: Pakistan’s solar market is crowded with local and international suppliers, from small retailers to large firms like Premier Energy and Hadron Solar. This competition forces vendors to offer discounts and flexible payment plans to attract customers.
Impact: Competitive pricing is likely to keep margins tight, preventing price hikes and potentially lowering costs by 3–5% as suppliers vie for market share in 2025.

Final Thoughts

Solar prices in Pakistan are poised to decrease further in the upcoming months of 2025, driven by a global oversupply of Chinese panels, falling battery and component costs, and potential benefits from the US-China tariff war. Prices could drop to PKR 25–27 per watt by Q4 2025, with complete systems seeing a 5–10% reduction, assuming stable geopolitics and no restrictive policies. Despite challenges like the India-Pakistan conflict and currency volatility, the market’s competitive dynamics and technological advancements favor affordability.